Delivery Hero (DHER) Q3 2024 TU earnings summary

Executive summary

• Q3 2024 saw GMV growth of 9% year-over-year, with non-Asia regions up 25% YoY; total segment revenue rose 24% YoY, outpacing GMV growth, driven by higher commissions, DMart expansion, ad tech, and service/subscription fees.

• Adjusted EBITDA improved year-over-year and quarter-over-quarter, with Europe and Americas segments reaching breakeven.

• MENA, Europe, and Integrated Verticals were the fastest growing segments, with Europe reaching break-even on adjusted EBITDA.

• Cash position remained strong at EUR 1.65 billion, supporting operational flexibility and future investments.

Financial highlights

• Q3 2024 GMV reached €12,249.3m (+9.3% YoY, constant currency), and total segment revenue hit €3,234.5m (+24.2% YoY, constant currency).

• All segments posted double-digit revenue growth; MENA, Europe, and Integrated Verticals led in pace.

• MENA revenue grew 32% and GMV 30% year-over-year; Europe revenue up 27% and GMV up 21% year-over-year.

• Americas revenue grew 20% and GMV 21% year-over-year, with GMV outside Argentina up 26%.

• Integrated Verticals GMV up 32% and revenue up 26% YoY, with gross profit margin expansion and adjusted EBITDA loss improving by over 80% since Q1 2024.

Outlook and guidance

• Full-year GMV and revenue expected at the upper end of guidance: 7%-9% GMV growth and 18%-21% revenue growth in constant currency.

• Adjusted EBITDA expected at the lower end of EUR 725-775 million due to reinvestment in Korea.

• Free cash flow guidance raised to EUR 50-100 million for 2024, driven by working capital improvements and lower CapEx.

• Q4 expected to generate significant positive free cash flow.

• Long-term ambitions confirmed: >€200bn GMV and 5-8% adj. EBITDA/GMV margin by 2030.