- Strong Financial Growth: GMV up 11%, revenue +27%, and adjusted EBITDA surged 71% to EUR 411 million (margin expansion of 70 bps).
- Glovo Integration Success: Operational gains include 6.7% conversion rate improvement, 9.8% fewer late orders, and 9.5% lower cost per order.
- Multi-Vertical Strategy: 52% of GMV from multi-vertical users, who spend 5.2x more than single-vertical customers.
- Asia Segment Recovery: GMV growth accelerated to 11% (constant currency), driven by South Korea’s own delivery model boosting order frequency and retention.
- Revised EBITDA Guidance: Adjusted EBITDA outlook narrowed to EUR 900–940 million due to FX headwinds, despite EUR 2.8 billion liquidity and EUR 900 million in bond repurchases.
Operational Improvements
The integration of Glovo has unlocked significant operational improvements, including a 6.7% conversion rate improvement, 9.8% fewer late orders, and a 9.5% reduction in cost per order. The company's multi-vertical strategy is also paying off, with half of the company's GMV coming from customers using multiple verticals on the platform. As Marie-Anne Popp highlighted, the leadership team's focus on lower costs and growth has been instrumental in driving these improvements.
Segment Performance
The company's Asia segment showed significant improvement, with GMV growth accelerating to 11% in constant currency and on a like-for-like basis. The rollout of own delivery service in South Korea has led to a significant increase in order frequency and customer retention. The company is confident in its investments in Korea, including own delivery and subscription, which will drive long-term value.
Valuation Metrics
With a P/S Ratio of 1.16 and an EV/EBITDA of -66.36, the market is pricing in significant growth expectations for Delivery Hero. The company's ROE is -57.41%, and the ROIC is -6.3%, indicating that the company is still in a growth phase and investing heavily. The Net Debt / EBITDA ratio is -24.21, indicating a healthy liquidity position.
Guidance and Outlook
The company is adjusting its outlook for 2025, with GMV growth expected to reach the upper end of the 8% to 10% range, and revenue growth in constant currency expected to be 22% to 24%. However, adjusted EBITDA has been impacted by FX developments, and the company now expects a more pronounced FX headwind in H2. The company is revising its guidance to a range of EUR 900 million to EUR 940 million.