Talabat (TALABAT) Q4 2024 earnings summary

Executive summary

• Reported strong Q4 and full-year 2024 results, marking the first earnings call post-IPO and following a corporate restructuring.

• Achieved double-digit growth in GMV, revenue, and profitability, maintaining leadership in the MENA on-demand delivery market across eight countries.

• Multi-vertical platform expansion and new personalized app experience drove customer acquisition, loyalty, and higher tPro and grocery acquisitions.

• Strong profitability and cash flow generation supported by operational efficiencies and AdTech revenue.

• Outperformed IPO guidance and analyst consensus on all key metrics.

Financial highlights

• FY 2024 GMV grew 23% year-over-year to $7.4 billion; management revenue up 32% to $3 billion.

• Adjusted EBITDA rose 55% year-over-year to $497 million (6.7% of GMV); adjusted net income up 53% to $393 million (5.3% of GMV).

• Net income grew 64% year-over-year to $350 million (4.7% of GMV); margin expanded by 1.2ppt year-over-year.

• Adjusted free cash flow increased 54% year-over-year to $462 million, with a 93% conversion rate from adjusted EBITDA.

• Ended 2024 with over $400 million in cash and no debt.

Outlook and guidance

• 2025 GMV growth guidance at 17%-18%; revenue growth at 18%-20% at constant currency.

• Adjusted EBITDA margin guidance for 2025 at 6.5%-7% of GMV; net income margin at 5%-5.5% with a 15% effective tax rate.

• Adjusted free cash flow margin guidance for 2025 at 6%-6.5%.

• Minimum $400 million dividend planned for FY 2025, with $110 million proposed for 2024.