Q1 2023 trading in line with guidance:
○ Revenue up 4% and gross transaction value (GTV) down 1% year-on-year (both in constant currency), with growth improving through the quarter.
Continuation of overall trends seen during H2 2022:
○ Revenue growth outpaced GTV growth, driven by the annualised impact of consumer fee optimisation during 2022 and growing contribution from advertising revenue;
○ GTV growth exceeded order growth with GTV per order up 8% in constant currency reflecting the continued impact of food price inflation.
Good performance in UKI, softness in International segment:
○ UKI revenue and GTV up 11% and 6% in constant currency, respectively. Growth underpinned by further improvement to the consumer value proposition, including enhanced selection in restaurants and grocery;
○ International revenue and GTV down 5% and 9% in constant currency, respectively. Year-on-year decline driven by more stringent COVID-related restrictions in Asian markets in early 2022, which made for a tougher comparison base, and continued market-wide weakness in France.
FY 2023 guidance maintained:
○ GTV growth anticipated to be low- to mid- single digits (in constant currency) with growth improving through the year as we continue to deliver on our plans and the comparison base eases;
○ Adjusted EBITDA expected to be in the range of £20-50 million, weighted to H2.
Will Shu, Founder and CEO of Deliveroo, said: “Revenue growth of 4% and broadly flat GTV (both in constant currency) represents a resilient performance, particularly in the context of inflationary pressures and the ongoing cost of living crisis and against a challenging comparison base. Against this backdrop, I’m particularly pleased with our performance in UKI, reflecting a further improvement in our offering to consumers. We remain confident in our ability to deliver on our plans to drive profitable growth and sustainable cash generation.”