Delivery Hero (DLVHF) saw its shares tumble more than 6% in Frankfurt after the company missed earnings expectations for the fourth quarter.
The food delivery company posted Q4 adjusted EBITDA of 250 million EUR ($269.4 million), compared to the consensus estimates of 254.3 million EUR, according to LSEG. Adjusted EBITDA margin stood at 0.6%.
Delivery Hero’s gross merchandise value (GMV) rose 6.7% year-over-year in the quarter to 12.3 billion EUR. For the full fiscal 2023, GMV grew 6.8% to 47.6 billion EUR, in line with the company’s own guidance.
Full-year revenue came in at 10.5 billion EUR ($11.3 billion), while analysts were looking for 10 billion EUR. Total segment revenue surged 15.7% billion to 3 billion EUR in Q4 and to 11.3 billion EUR for the year. Annual growth was also in line with Delivery Hero’s own guidance.
Going forward, the delivery firm expects GMV growth of 7-9% in 2024, which surpasses its growth rate in 2023.
Segment revenue is estimated to grow from 15% to 17% for the entire year of 2024, alongside an expected adjusted EBITDA ranging from 725 million to 775 million euros.
Further, the company also projects achieving positive free cash flow throughout the year.
“We believe the promise of positive unlevered FCF in FY24, alongside closing liquidity of €1.7bn and the CEO's commitment to "profitable growth, cash generation and disciplined capital allocation" should provide some relief for the equity today,” Jefferies analysts said on Monday.