Delivery Hero CEO, Niklas Östberg, dropped some exciting news at the Noah tech conference in Berlin on June 13, 2019. It looks like 2023 was a big year for Delivery Hero, as the company released preliminary financial results showing impressive sales growth and promising profitability forecasts for 2024. Let’s take a closer look at these results and what they mean for the popular food delivery giant.
If you’re an investor or just a fan of food delivery, you’ll be glad to hear that Delivery Hero exceeded expectations in 2023. The company reported a whopping 10.5 billion euros in annual revenues, surpassing analysts’ expectations of 10 billion euros. Even more impressive was the adjusted EBITDA, which topped 250 million euros, beating forecasts of 254.3 million euros. This strong performance is evidence that Delivery Hero is on track to achieve its long-term growth plans, bringing a sense of stability to investors who may have been worried following last week’s share price drop.
In addition to the solid financial performance, Delivery Hero saw strong growth in its gross merchandise value (GMV) and segment revenue. GMV increased 6.7% in the fourth quarter of 2023 to 12.3 billion euros and 6.8% for the full year to 47.6 billion euros. Total segment revenue also grew by 15.7% to 3 billion in the fourth quarter and reached 11.1 billion euros for the full year. These numbers align with the company’s guidance for around 15% year-over-year growth, showing that Delivery Hero is delivering on its promises.
Furthermore, the company’s strong performance has set the stage for an even more successful 2024. Delivery Hero is forecasting 7-9% GMV growth, higher than its 2023 performance, with segment revenue expected to grow between 15-17% for the full year. These projections, along with expected adjusted EBITDA of 725-775 million euros, indicate that the company has a clear plan for continued growth and profitability. Delivery Hero’s positive outlook for free cash flow in 2024 is also great news for investors, who can expect the company to remain financially healthy as it pursues its expansion goals.
The mood at Delivery Hero has been optimistic despite last week’s downturn in share price. The company remains confident in its future direction and has released these preliminary financial results earlier than planned to show its commitment to transparency and accountability.
Overall, it seems like we can look to the future with confidence in Delivery Hero’s ability to deliver. The company has solidified its position as one of the largest food delivery services globally, serving more than 2.2 billion users and competing with prominent players like DoorDash, Deliveroo, Just Eat Takeaway.com, Grab, and Gojek.
While these results are promising, it’s important to remain cautious and wait for the full fourth-quarter update on February 14. If the early findings are any indication, Delivery Hero might just be on the verge of another stellar year ahead.
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