Delivery Hero: reports strong Q3-2024 results

Berlin / DE. (dhh) Delivery Hero Holding S.E., the world’s leading local delivery platform, announced its Q3-2024 results, extending the successful profitable growth trend from the previous quarters. Driven predominantly by increasing order volumes, the Company accelerated its Gross Merchandise Value (GMV) growth from 7 percent YoY in the previous quarter to 9 percent YoY this quarter.

The Company’s Total Segment Revenue growth exceeded the GMV development, rising 24 percent YoY, with double digit growth across all segments. This growth continues to be driven by multiple levers, including growing AdTech business, Dmarts, and better monetization. As in the previous two quarters of 2024, MENA, Europe and Integrated Verticals continued to be the fastest growing segments.

Niklas Östberg, CEO and Co-Founder of Delivery Hero: «We continue to achieve strong growth across our business driven by consistent focus on customer experience over many years. There is a steady increase in engagement and loyalty among our customers as we roll out products and services such as Dmarts, subscription, loyalty points, grocery, shops and more.»

The Company’s cash balance was maintained at a strong level of EUR 1.65 billion at the end of the third quarter of 2024, implying that Delivery Hero’s financial position remains solid.

Interim CFO Marie-Anne Popp: «The impressive double-digit growth rates across business segments highlight our ability to deliver sustainable and profitable growth. We are pleased to share that we now expect GMV and Total Segment Revenue growth to reach the upper end of guidance for FY-2024, and adjusted Ebitda to remain in line with the base range of our guidance. Additionally, we expect to reach a milestone of EUR 50-100 million in free cash flow for FY-2024, proving our financial resilience and disciplined capital allocation.»

Strong performance of MENA and Europe platform businesses

Delivery Hero’s MENA segment continued its strong growth trend in Q3-2024, achieving GMV growth of 30 percent YoY. This was driven by a 25 percent YoY increase in order volumes and attractive affordability initiatives, including vendor-funded deals.

In Europe, the Company’s GMV growth accelerated from 19 percent YoY in the previous quarter to 21 percent YoY this quarter. As a result of strong top-line development combined with increased efficiencies, the Company was able to reach break-even on adjusted Ebitda level in the Europe platform business.

As said last quarter, Delivery Hero has merged its Yemeksepeti, foodora, and foodpanda business teams. Under unified new leadership, these brands are set to unlock synergies and further accelerate growth.

Strategy at work in the Americas, driving profitable growth

Q3-2024 has highlighted the Company’s successful strategy in driving growth and profitability across key emerging markets, particularly in the Americas platform segment, where focused efforts from the brand PedidosYa over recent years have led to improved profitability and GMV growth, strengthening the role in economies where a growing population and rising purchasing power continue to drive demand.

In Q3-2024, GMV growth increased to 21 percent YoY, driven by double-digit volume growth. In addition to the strong top-line performance, the segment has achieved break-even on adjusted Ebitda during the quarter, with further improvements on profitability expected in Q4 2024. Enhancing Customer experience through our multi-vertical approach has led to rapid growth of Quick-commerce in the region. At the same time, customer loyalty and order frequency have improved, driven by our subscription offering.

Integrated Vertical segment on track to achieve positive adjusted Ebitda

Delivery Hero’s Integrated Verticals segment maintained strong top-line momentum in Q3-2024, with GMV growth of 32 percent YoY. Half of this growth is driven by an increasing number of orders, while the other half results from growing basket sizes. The entire Integrated Verticals segment on track to achieve positive adjusted Ebitda in December of this year.

Financial Year 2024 Outlook

The Company announced last quarter that it reached Free Cash Flow break-even in H1 2024, and has now raised Free Cash Flow guidance from positive to EUR 50-100m. This reflects Delivery Hero’s clear focus on building a successful and highly cash generative business. While Delivery Hero is updating its Adjusted Ebitda guidance from previously EUR 725-775m to the lower end of that range, the Company is raising its GMV growth guidance from previously 7-9 percent YoY to the upper end of 7-9 percent YoY, and Total Segment Revenue from previously 18-21 percent YoY to the upper end of 18-21 percent YoY.

Delivery Hero – Guidance FY-2024

GMV	Upper end of 7-9 percent YoY (previously: 7-9 percent YoY)
Total Segment Revenue	Upper end of 18-21 percent YoY (previously: 18-21 percent YoY)
Adjusted Ebitda	Lower end of EUR 725-775 million (previously: EUR 725-775 million)
Free Cash Flow	EUR 50-100 million (previously: positive)

Key Performance Indicators Q2 2024

(in million EUR)	Q3-2023	Q3-2024
GMV Group (CC)	11,693.4	12,249.3
%YoY Growth (CC, excl. hyperinflation adjustment)		9.3%
%YoY Growth (RC, incl. hyperinflation adjustment)	2.1%	4.8%
Asia	6,385.6	5,962.2
MENA	2,716.3	3,204.9
Europe	1,819.5	2,185.0
Americas	772.0	897.3
Integrated Verticals	602.6	740.4
.
Total Segment Revenues Group	2,712.9	3,234.5
%YoY Growth (CC, excl. hyperinflation adjustment)		24.2%
%YoY Growth (RC, incl. hyperinflation adjustment)	8.6%	19.2%
Asia	929.4	1,053.3
MENA	723.5	891.3
Europe	369.9	467.8
Americas	201.9	234.1
Integrated Verticals	573.8	672.7
Intersegment consolidation	(85.6)	(84.5)