Delivery Hero says it hit 2023 sales growth targets in early results after 26% stock plunge

Delivery Hero published preliminary financial results on Monday, a week earlier than planned, that showed the company grew sales in line with its guidance last year and is forecasting stronger profitability in 2024.

The results, which are unaudited and based on preliminary information, are being released by the company early in a bid to push back on investor flight last week over the food delivery giant’s asset sales strategy.

Here’s how the company did:

Revenue: 10.5 billion euros ($11.3 billion) in annual 2023 revenues, versus 10 billion euros expected by analysts, according to LSEG data

Adjusted EBITDA (earnings before interest, tax, depreciation, and amortization): Delivery Hero says adjusted EBITDA “exceeded” 250 million euros ($269.4 million). Analysts had forecast adjusted EBITDA of 254.3 million euros, per LSEG

Delivery Hero said group GMV (gross merchandise value), which is the combined value of overall orders on its platforms, grew 6.7% year-over-year to 12.3 billion euros in the fourth quarter of 2023, and by 6.8% to 47.6 billion euros in full-year 2023.

Total segment revenue increased 15.7% to 3 billion in the fourth quarter. Full-year sales came in at 11.1 billion euros for the full year, up 15.7% year-on-year.

That matches company guidance for “around 15% YoY [year-over-year]” growth in 2023.

Adjusted EBITDA, which is Delivery Hero’s measure of profitability, totaled more than 250 million euros in full-year 2023, Delivery Hero said, and the company reported adjusted EBITDA margin of 0.6%.

Delivery Hero said the results were driven by healthy order growth in many of its geographies.

Most notably, Delivery Hero also gave some rosy guidance for 2024, with the delivery company forecasting group GMV growth of 7-9% for the year, higher than its performance in 2023.

Delivery Hero said it expects segment revenue growth of…