Delivery Hero (DHER) CMD 2024 summary

Strategic direction and market opportunity

• Operating in 8 MENA countries, serving 71 million addressable people with 6 million active users, and $6.1B GMV in 2023, growing at a 51% CAGR over 8 years.

• Clear leadership in all markets, with 3–10x share over the next competitor, leveraging strong network effects and multi-vertical offerings (food, grocery, retail, subscriptions).

• Massive headroom for growth: current orders per capita per month at 0.42, with potential to reach 20–90, and only 1% penetration in grocery and retail.

• Non-GCC markets (Egypt, Iraq, Jordan) are early-stage with 30x growth potential; GCC markets still show double-digit growth and high frequency among top users.

• Urbanization (92%), young population (72% under 40), and high internet penetration (99%) drive secular tailwinds for future expansion.

Business model, technology, and product innovation

• Multi-sided marketplace with 64,000+ partners, 115,000 riders, and 129 tMart stores, offering the largest selection and most efficient fleet in the region.

• AdTech and retail media are key growth and profitability drivers, with AdTech revenue rising from $84M (2021) to $200M (2023), and retail media at 2% of GMV, aiming for 7–8%.

• Proprietary tech stack enables advanced personalization, AI-driven recommendations, and seamless cross-vertical user journeys, contributing $40M+ incremental EBITDA and generating 13TB of data daily.

• Asset-light model for dark stores (TMart), with positive EBITDA and high operational efficiency; InstaShop acquisition to further expand partner network and tech synergies.

• Continuous investment in R&D, data, and experimentation, with unified tech stack, rapid product release cycles, and two tech hubs in Dubai and Cairo.

Financial performance and guidance

• 2023 free cash flow of $300M, 7% margin, and 90%+ EBITDA-to-cash conversion; H1 2024 cash flow up 64% YoY.

• Revenue grew 31% YoY in H1 2024, with 12.4% GMV margin and $231M adjusted EBITDA (6.7% margin); net income margin at 5%.

• Guidance: 2024 GMV growth 22–23%, revenue up 28–30%, 6.5% adjusted EBITDA margin; 2025 GMV growth 17–18%, revenue up to 20%, EBITDA margin 6.5–7%.

• Mid-term: mid-teens GMV and revenue growth, EBITDA margin up to 8%, 90% net income payout ratio, and minimum $400M dividend for 2025.

• Asset-light, low CapEx, minimal FX risk, and strong liquidity position; InstaShop not included in guidance but expected to add 8% GMV and positive EBITDA.