Just Eat Takeaway.com (TKWY) Q3 2024 TU earnings summary

Executive summary

• Achieved 2% constant currency GTV growth excluding North America in Q3 2024, with improved exit rate after a slow July and continued positive momentum in Northern Europe and UK & Ireland.

• Focused on strategic pillars including free cash flow generation, growth, portfolio optimization, choice, value, experience, efficiency, and sustainability.

• Nearly 50,000 net new partners added year-to-date, including 20,000 in grocery and retail; new partnerships launched in grocery, pharmacy, and wellness.

• Investments ramped up in key markets such as the UK, Ireland, and Germany, with increased visibility from UEFA Champions League partnerships.

• Ongoing cost base review and operational efficiencies, including automation and AI-driven improvements, are driving down costs and improving logistics.

Financial highlights

• Q3 2024 total GTV was €6.34 billion, down 3% year-over-year; GTV excluding North America grew 2% in constant currency.

• For the first nine months of 2024, GTV growth excluding North America was 3% constant currency and 4% reported, within the guided 2%-6% range.

• North America GTV declined 11-12% year-over-year in Q3 2024.

• Orders declined 6% year-over-year to 211.1 million in Q3 2024; orders excluding North America fell 3%.

• €340 million in shares repurchased over the past 18 months; 5% of issued shares cancelled.

Outlook and guidance

• 2024 guidance reiterated: constant currency GTV growth excluding North America expected at 2%-6% year-over-year.

• Adjusted EBITDA for 2024 expected to be approximately €450 million, with back-end loaded generation in H2.

• Free cash flow before working capital changes expected to remain positive in 2024 and beyond.

• Long-term target: group adjusted EBITDA margin above 5% of GTV.

• Actively exploring partial or full sale of Grubhub; no certainty on outcome or timing.