Deliveroo Plc lowered its forecast for revenue growth this year after the value of transactions on its platform grew at a slower pace in the most recent quarter, reflecting an increasingly cautious view of economic output and growing challenges for consumers.
The London-based food delivery company said gross transaction value is expected to grow 4 to 12 percent this year after previously forecasting growth of 15 to 25 percent, according to a statement Monday. This reduction comes after GTV rose 2 percent year over year on a currency-neutral basis in the second quarter, a slowdown compared to a 12 percent expansion in the first quarter.
Deliveroo’s shares are down nearly 60 percent this year as investors favor profitable companies over fast-growing tech companies that are losing money. Deliveroo has stepped up efforts to generate cash, launch an advertising platform, and outline plans to reach break-even status in the next few years.
The company also said in its trading update that it generated £3.56 billion ($4.23 billion) of GTV in the first half of the year, up 7 percent year-on-year. Adjusted earnings before interest, taxes, depreciation and amortization margin guidance was maintained and the company said its balance sheet remains strong.
“Management is confident in the company’s ability to adjust financially to a rapidly changing macroeconomic environment through gross margin improvements, more efficient marketing spend and tight cost controls,” the statement said.
Full first half results will be released on August 10th.
https://www.independent.ie/business/world/deliveroo-cuts-2022-forecast-after-sales-slow-in-latest-quarter-41847422.html Deliveroo cuts 2022 guidance after sales tumbled last quarter