Deliveroo's surprise strength in orders provide post-IPO

[LONDON] Deliveroo saw the value of orders on its platform grow faster than expected in the fourth quarter, driving the company to hit the top end of its full-year guidance and providing a lift as its stock languishes since going public last year.

The London-based food delivery company said in a statement on Thursday (Jan 20) that full-year gross transaction value (GTV) rose 70 per cent year-on-year in constant currency, the edge of the previously projected 60-70 per cent range. Fourth-quarter GTV gained 36 per cent to £1.7 billion (S$3.1 billion), while analysts surveyed by Bloomberg had expected gains of 28.3 per cent.

Orders in the past quarter rose 10 per cent sequentially, while GTV per order rose 1 per cent in constant currency to £21.40.

The company confirmed its full-year guidance for gross profit margins of 7.5-7.75 per cent as a ratio of transaction value.

"Despite a challenging backdrop, we continued to strengthen our customer proposition, widen our customer base and execute against our strategy," Deliveroo chief executive officer Will Shu said in a statement.

In October, Deliveroo raised projections for 2021 growth in a bet that diners would continue to order meals to their home amid a reopening of economies.

Deliveroo shares have fallen about 56 per cent since its market debut last March. It rose in London trading on Wednesday to close up 1.3 per cent.

BLOOMBERG