- Strong Polish GMV Growth: Poland GMV reached PLN 16.5 billion (9.8% YoY), driven by 8% higher spend per active buyer to PLN 4,178.
- Revenue Surge in Poland: Polish revenue rose 18.1% YoY to PLN 2.8 billion, with take rates hitting 13.01% (up 0.5% YoY).
- International Market Expansion: Allegro International achieved 61% GMV growth, with Smart! app users exceeding 1 million and 100% GMV growth.
- Logistics Infrastructure Expansion: Plans to increase parcel lockers to over 8,000 by year-end, supported by PLN 3.3 billion in Allegro Pay loan origination.
- Allegro Pay Performance: 15.3% of total GMV funded via Allegro Pay, reflecting its role in driving transaction volume and financial services growth.
Operational Highlights
The company's operational metrics also showed significant improvement, with Allegro International achieving a 61% GMV growth in the quarter. Allegro Pay continued its strong performance, with 15.3% of GMV funded through its payment methods and PLN 3.3 billion in loan origination. As the company highlighted, "We are seeing increased Smart! user growth and strong demand from merchants on our marketplaces."
Logistics and Cost Management
Allegro's logistics costs, while higher due to increased volume, were partially offset by the growth of Allegro managed deliveries, which are more cost-effective. The company is investing heavily in its logistics network, with plans to increase the number of its own parcel lockers to over 8,000 by year-end. The net cost of running the Smart! program decreased as a percentage of GMV, indicating effective cost management.
Valuation and Outlook
With a P/E Ratio of 33.48 and an EV/EBITDA of 11.67, Allegro's valuation suggests that the market is pricing in significant growth expectations. The company's updated outlook for the full year raises revenue and adjusted EBITDA growth expectations, with Polish GMV growth expected to remain around 10% and international marketplaces projected to exceed initial expectations. Analysts estimate next year's revenue growth at 10.8%, indicating a continued upward trajectory.
Strategic Initiatives
Allegro is focusing on several strategic initiatives, including accelerating marketplace functionality development, expanding into new categories and market segments, and leveraging AI technology. The company is also exploring opportunities to expand its logistics infrastructure, including offering Allegro Delivery services to non-Allegro parcels, which could further drive growth.