Deliveroo (ROO) H2 2024 earnings summary

Executive summary

• Achieved year-on-year GTV growth of 6%, adjusted EBITDA of £130 million up 52%, and first full year of statutory profit and positive free cash flow.

• Growth driven by innovation in loyalty (Plus), price integrity, and expansion in grocery and retail verticals.

• Consumer engagement improved, with higher order frequency and retention across cohorts.

• Exited Hong Kong market to focus on more compelling opportunities, with pro forma results provided for ongoing business.

• Reconfirmed growth and profitability targets, with a slightly longer timeline for margin goals.

Financial highlights

• FY24 GTV: £7,433m (+6% YoY, constant currency); Revenue: £2,072m (+3% YoY, constant currency).

• Adjusted EBITDA reached £130 million, with margin expanding 50bps to 1.7%.

• Free cash inflow of £86 million, normalizing to £25 million after working capital adjustments.

• Net cash position at year-end was £668 million.

• Gross profit: £767m (+6% YoY); gross profit margin stable at 10.3% of GTV; revenue take rate at 27.9% of GTV.

Outlook and guidance

• 2025 GTV expected to grow at high single-digit % in constant currency, excluding Hong Kong.

• Adjusted EBITDA guidance for 2025 is £170–190 million, with margin progression slower due to targeted investments.

• Digital Services Tax in the UK to be a 15bps drag on take rate and margin in 2025.

• Confident in mid-teens GTV growth and 4%+ adjusted EBITDA margin in the medium term, with margin improvement expected to accelerate after 2025.