DLVHF Q3 2024 Earnings

Call Details

• Call Title: Delivery Hero Ag Na Q3 2024 Earnings Call
• Date: November 7, 2024 at 1:00 PM UTC
• Management Team:
  • Christoph Bast (Head of Investor Relations)
  • Niklas Östberg (Chief Executive Officer)
  • Marie-Anne Popp (Interim Chief Financial Officer)

Call Summary

Financial Performance

• Group GMV growth accelerated from 7% in Q2 to 9% in Q3 in constant currency, excluding hyperinflation accounting effects.
• Total segment revenues increased 24% year-on-year on a constant currency, hyperinflation-excluded basis.
• Europe recorded adjusted EBITDA break-even in Q3 while revenue growth in Europe accelerated to 27% in constant currency.
• MENA GMV grew 30% year-on-year and MENA revenues grew 32% year-on-year in constant currency, excluding Turkey hyperinflation effects.
• Platform gross profit margin was 7.3% in Q3, down 0.3 percentage points versus Q2, while DMART gross profit margin expanded to approximately 5%.
• Reported cash balance was €1.65B and the company stated it expects significant positive free cash flow in Q4.

Guidance

• Full-year GMV is expected at the upper end of the prior guidance range of 7% to 9% growth in constant currency, excluding hyperinflation.
• Full-year revenue is expected at the upper end of the prior guidance range of 18% to 21% growth in constant currency, excluding hyperinflation.
• FX headwinds for the year are expected to be around 3%.
• Adjusted EBITDA is expected to come in at the lower end of the previously communicated €725M to €775M range due to reinvestment activities in Korea.
• Free cash flow guidance for 2024 was raised to €50M to €100M from a prior 'positive' statement.
• Q4 is expected to deliver significant positive free cash flow driven by working capital improvements, better supplier terms, lower DMART capex, and earnings in lower tax markets.