Deliveroo slashed sales growth projections for the year after sales grew slower than expected in the latest quarter.
I know my orders didn’t change… Pizza Hut all the way.
Anyway, in Q2 gross transaction value (GTV) growth was 2% year on year. This slowdown in GTV growth compared to the prior year’s quarter reflects the impact of increased consumer headwinds.
Furthermore, GTV was down from 12% in the previous three months. Meanwhile, in the UK, sales growth dropped to 4% from 12% in the first quarter.
As for Deliveroo’s financial guidance, the company reported a more cautious outlook.
The online delivery firm’s full-year GTV growth is expected to be in the range of 4% to 12% (in constant currency) versus prior guidance of 15% to 25%. That is a steep drop. Ouch.
However, Deliveroo is maintaining its 2022 adjusted EBITDA guidance to be in the range of (1.5)% and (1.8)% and stated they are “confident in the Company’s ability to adapt financially to a rapidly changing macroeconomic environment.”
At least someone is confident ahead of its poor performance.
Its full results for H1 will be released on the 10th of August.
Let’s hope they can “deliver” on that. 😉
The majority of Deliveroos sales come from its app. Therefore, its AppStore and usage rank helps depict its performance and score across certain countries. The first graph shows its IOS ranking, and the second displays its Android ranking.
Furthermore, in its core market, the UK, the app has declined in both app store ranking and usage.