Delivery Hero SE tempered expectations for revenue and gross merchandise value this year, as the company focuses on profitability.
(Bloomberg) — Delivery Hero SE tempered expectations for revenue and gross merchandise value this year, as the company focuses on profitability.
Revenue rose 28% to €2.5 billion in the third quarter, the Berlin-based company said in a statement on Thursday. That compared to a €2.52 billion average forecast from analysts in a Bloomberg survey.
Delivery Hero said GMV, which is a measure of how much customers spend on the platform, and total segment revenue this year will be on the low end of previous guidance. GMV had been projected at €44.7 billion to €46.9 billion and sales at €9.8 billion to €10.4 billion.
Food delivery companies have been facing slower growth following a pandemic-fueled surge, and have instead emphasized a path to profitability. Deliveroo Plc raised its margin guidance and lowered its growth outlook last month.
Key Insights
- Delivery Hero reported its Spanish business, Glovo, saw GMV grow 40% from a year earlier. The growth came despite the war in Ukraine, its third-largest market.
- A tougher market, where growth dramatically slowed after Covid-19 lockdowns ended, is driving dealmaking in the sector. Istanbul-based delivery startup Getir is in advanced talks to buy Gorillas Technologies GmbH, people familiar with the matter have said.
Market Reaction
- Delivery Hero shares rose 6.4% to €37.06 as of 9:24 a.m. in Frankfurt.
- Shares have fallen 62% so far this year.
- That compares to a 30% decline in the Stoxx Europe 600 Technology Index.
Get More
- Delivery Firm Getir Said in Advanced Talks to Buy Gorillas
- Deliveroo Cuts Loss, Growth Outlook in Move Toward Profit
(Updates with share price in Market Reaction section)
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