Deliveroo Reports Strong Revenue Growth Amidst Market Expansion

Deliveroo plc announces a 7% revenue growth to £518M in Q1, showcasing robust order increases and positive gross transaction value, signaling a promising outlook for investors.

Date: 17-04-2025

AI Rating: 7

Revenue Growth and Transaction Value
Deliveroo plc's first-quarter trading update reveals a solid increase in revenue by 7%, reaching £518 million, up from £485 million the previous year. This revenue growth is a clear indicator of the company's ability to scale its operations effectively in the competitive food delivery market.

Additionally, the gross transaction value (GTV) saw a year-on-year increase of 9% in constant currency terms, rising from £1.73 billion to £1.87 billion. This is complemented by a slight increase in gross transaction value per order, which climbed by 1% to £25.8 million, highlighting efficient order processing and customer engagement.

Deliveroo also reported a notable growth in order volume, marked by a 7% increase to 72.6 million orders compared to 67.8 million in the prior year. The consistency of their growth in transaction value and orders bodes well for future revenue generation.

Looking ahead, the forecast remains optimistic with expectations of continued high single-digit percentage growth in gross transaction value. Furthermore, the company projects Adjusted EBITDA to fall within the range of £170 to £190 million. This forward-looking statement suggests that Deliveroo is well-positioned for profitability while maintaining growth.

Investment Considerations
Given the positive indicators relating to revenue, transaction value, and order growth, Deliveroo presents a compelling case for investors looking for growth in the tech-driven food delivery sector. These metrics suggest robust operational performance, making it a hold for near-term investors. As the landscape continues to evolve, those keeping abreast of Deliveroo's market strategies may find promising opportunities ahead.

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