Just Eat Takeaway.com (TKWY) Q4 2017 earnings summary

Executive summary

• FY17 revenue rose 49% to €166.5m and orders increased 38% to 68.3m; growth reflected higher consumer numbers, repeat ordering and higher commission rates.

• Adjusted EBITDA loss was €27.6m, reflecting investment in marketing, Scoober, staffing, technology and organisational capability; absolute losses were expected to decrease.

• Market-leading positions strengthened in the Netherlands, Germany, Poland, Austria and Belgium.

Financial highlights

• Revenue was €166.5m, up 49% YoY; order growth and higher commission rates accounted for 44% of growth, with other revenue items contributing 5%.

• Gross profit increased 45% to €139.5m; gross margin was 84%, down from 86% in 2016, while margin excluding Scoober increased slightly.

• GMV rose 39% to €1,313m, slightly ahead of order growth as average order value increased.

• Adjusted EBITDA loss widened to €27.6m from €18.3m in 2016; H2 loss improved to €12.1m from €15.5m in H1.

• Year-end cash and cash equivalents, including debt, were €89.8m, down €44.8m during 2017.

Outlook and guidance

• 2018 guidance remained unchanged after the Bulgaria and Romania acquisitions; absolute losses were expected to decrease as investment continued.

• Medium-term order growth objective remained above 25% p.a.; FY17 growth was 38%, with a 42% CAGR over 2015–17.

• Positive Adjusted EBITDA margins were targeted for Germany and overall within 2–3 years of IPO; growth in revenue, rather than slowing investment, was expected to drive margin improvement.

• Marketing and staff investment would continue in 2018, with lower growth rates than in 2017 and hiring focused particularly on technology and sales.