Delivery Hero (DHER) CMD 2024 summary

Strategic vision and market opportunity

• Operates in 8 MENA countries with $6.1B GMV in 2023, growing at 51% CAGR over 8 years, and clear market leadership, 3–10x larger than second players in all markets.

• Multi-vertical approach covers food, grocery, retail, fintech, and loyalty products, with over 6M active users out of a 71M addressable population.

• Massive headroom for growth: only ~$13Bn of a $274Bn addressable market is online-penetrated, with monthly orders per capita far below potential.

• Urbanization (92%), young demographics, and high internet penetration (99%) drive future expansion.

• Acquisition of InstaShop expected to close in 2025, expanding grocery and retail reach and adding $500M GMV and positive EBITDA, not yet in guidance.

Business model, technology, and competitive advantages

• Strong network effects from the largest partner and customer base, driving efficiency, retention, and high customer loyalty.

• Proprietary tech stack enables rapid scaling, personalization, and operational excellence, generating 13TB of data daily.

• AdTech and retail media are high-margin, fast-growing revenue streams, with $200M in 2023 and CPG partnerships deepening supply relationships.

• Asset-light model with 115,000+ riders (90% via third-party logistics), 129 tMart stores, and 9,300+ local shop partners.

• Continuous innovation in AI/ML, safety, and data-driven product development, with $14M+ incremental EBITDA from personalization and a 94% rider safety score.

Financial performance and guidance

• 2023 free cash flow of $300M, 7% margin, and 90%+ EBITDA-to-cash conversion; H1 2024: 23% GMV growth YoY, 31% revenue growth, 12.4% GMV margin, $231M adjusted EBITDA.

• Guidance: 2024 GMV growth 22–23%, revenue up 28–30%, ~6.5% EBITDA margin, 5% net income margin.

• Mid-term: mid-teens GMV/revenue growth, EBITDA margin up to 8%, 90% net income payout ratio.

• Free cash flow margin at 7% of GMV in H1 2024, with 98% cash conversion.

• Minimum $100M dividend planned for April 2025 (Q4 2024 results), with $400M for FY25 and a target payout of 90% of reported net income.