Deliveroo — FY2024 Earnings Presentation
33 slides from Deliveroo's earnings presentation, Mar 13, 2025
Slide 1: Deliveroo FY 2024 Results
13 March 2025 Deliveroo FY 2024 Results
Slide 2: Definitions & basis of discussion
Definitions & basis of discussion References to profitability in this presentation are to adjusted EBITDA unless otherwise stated. Adjusted EBITDA represents loss for the year before income tax charge/credit, finance costs, finance income, depreciation and amortisation, impairments, exceptional items an
Slide 3: Overview
Overview
Slide 4: FY24 | Delivering growth and profitability
FY24 | Delivering growth and profitability Good financial performance; GTV up 6% and revenue up 3%, adjusted EBITDA up 52%, with positive free cash flow and profit milestones hit Progress on growth initiatives; innovation in Plus loyalty programme, focus on price integrity, strong growth in grocery and
Slide 5: 2024 financials
2024 financials
Slide 6: Overview | Making strong progress in 2024
Overview | Making strong progress in 2024 GTV1 Revenue1 Gross profit £7,433m £2,072m £767m +5% YoY +2% YoY +6% YoY +6% in cc +3% in cc Adj. EBITDA2 Free cash flow3 Net cash4 £130m £86m £668m +52% YoY +£124m YoY £(11)m YoY 1 “cc” = constant currency growth rate. 2 Adjusted EBITDA represents profit for t
Slide 7: Top line | Orders returning to growth
Top line | Orders returning to growth Robust top-line performance; orders returned to growth Encouraging performance in both segments ● Continued strength in UKI exiting the year up 9% in Q4 ● GTV up 6% in 2024 (2023: 3%) ● Return to growth of International segment; up 4% in 2024 compared ● Orders r
Slide 8: Revenue & margin | Efficiencies enable CVP investments
Revenue & margin | Efficiencies enable CVP investments Investment in CVP enabled by delivery efficiencies Growth in gross profit, stable gross profit margin FY22: 28.8% FY23: 28.7% FY24: 27.9% FY22: 9.4% FY23: 10.3% FY24: 10.3% Group revenue take Group gross profit rate (% of GTV) margin (% of GTV) Group r
Slide 9: Costs | Continued leverage with further opportunities
Costs | Continued leverage with further opportunities Marketing & overheads (M&O) Breakdown of marketing & overheads (M&O) (as % of GTV) Group (£m) 2024 2023 YoY Staff and other people costs¹ 368 362 2% Capitalised development costs (41) (36) 15% Net people costs 326 326 0% Non-people costs² 124 129
Slide 10: Cash flow | First year of positive free cash flow
Cash flow | First year of positive free cash flow £ million 679 668 FCF: £86m (+£124m YoY) FCF before cash exceptionals: £133m (+£151m YoY) FCF normalised for working capital before cash exceptionals: £72m 1 3 2 ¹ Cash exceptional items primarily relate to cash outflow for regulatory settlements. 2 3 £
Slide 11: Capital allocation | Announcing £100m return of capital
Capital allocation | Announcing £100m return of capital Allocation of capital1 Bridge from December 2024 net cash to pro forma net cash (£m) Strategic and operational capital Headroom (including provisions and contingent liabilities) Structural surplus capital2 December Remaining New capital return
Slide 12: FY25 outlook
FY25 outlook GTV growth ● Anticipated to be high-single digits percentage growth (in constant currency) Adjusted EBITDA ● Expected to be in the range of £170-190 million, as we make targeted investments to capture future growth opportunities 12
Slide 13: Business update
Business update
Slide 14: Growth | Our business
Growth | Our business Building blocks Verticals Consumer value proposition Leading Value for Delivery 2013-19 Restaurant Grocery selection money Plus experience New customers Retention Leading Value for Delivery 2020-22 Restaurant Grocery selection money Plus experience Frequency Restaurant Grocery
Slide 15: Price/value | Building trust for consumers
Price/value | Building trust for consumers We have used direct and indirect levers …resulting in positive outcomes for Focus for 2025 and beyond… to address prices on the platform… consumers, partners and Deliveroo Direct levers Reduced average markups1 in UKI Strengthen Value Programme benefits to e
Slide 16: Loyalty | Step change in Plus programmes
Loyalty | Step change in Plus programmes We launched innovations in our Plus …resulting in more subscribers… Focus for 2025 and beyond… programme… Increase in paying Gold +30% subscribers in UKI/ France since relaunch (May 2024) Introduce more sophisticated subscriber acquisition targeting …who orde
Slide 17: Delivery experience | Striving to make every order perfect
Delivery experience | Striving to make every order perfect By helping merchants and riders reduce …we delivered more perfect orders and Focus for 2025 and beyond… defects across the order journey… improved consumer sentiment Streamlined operations for partners: ● Live signals ● Item substitutions 12
Slide 18: Grocery | Increasing the power of our platform
Grocery | Increasing the power of our platform We have increased selection and …driving increased category adoption Focus for 2025 and beyond… improved consumer experience… and incremental platform benefits More grocery users ● Continue to improve selection and ~20,000 Increased grocery coverage thro
Slide 19: Retail | Laying the foundations
Retail | Laying the foundations We focused on expanding selection in key categories and driving awareness… Focus for 2025 and beyond… Expanding selection Focusing on our priority categories ● Continue to improve selection and coverage through new and existing partners ● Drive awareness & category ad
Slide 20: Cohorts | Building blocks of future growth improving
Cohorts | Building blocks of future growth improving Average order frequency (AOF) by cohort (Group)1 Improving trend in YoY frequency growth2 Building blocks New customers Retention Lapse rate also continuing to improve3 Frequency GTV per order 1 Monthly average order frequency (of MACs) by cohort
Slide 21: Restaurant | Reignite growth
Restaurant | Reignite growth Major markets have seen post-COVID Our existing CVP has put us in a good We will grow the overall market by growth constrained position and we will push harder in 2025 unlocking new occasions UK Enhancing selection, including key exclusives Optimising dishes and price po
Slide 22: Growth target | How do we accelerate?
Growth target | How do we accelerate? GTV growth New Expansion Mid- New use cases teens CVP verticals New restaurant Radii expansion levers missions Macro Further penetration Leading selection Grocery Mid-sized basket in geographic areas 9% grocery Price integrity Retail Reducing Delivery experience
Slide 23: Margin target | How do we get to 4%+?
Margin target | How do we get to 4%+? Adjusted EBITDA margin Operating leverage 4%+ Marketing & overheads levers Cost of sales levers Drive operating leverage Increased marketing with scale Revenue levers efficiency/targeting Reduce rider wait time at merchant Improved tooling/ 2.0% automation Scale a
Slide 24: Advertising | Continuing to scale
Advertising | Continuing to scale What have we done? What has it delivered? Look forwards Increase in partners ● Develop advertiser value proposition ● Improved advertiser experience - through the launch of new features +15% placing ads in 2024 through enhanced user targeting, better insights and ne
Slide 25: Marketing and promotions | Driving efficiencies
Marketing and promotions | Driving efficiencies What have we done? What has it delivered? Look forwards Refined top of the funnel initiatives: New Customers (NC) Saving in NC promotions ● Further optimise the way we bid on paid ● Optimised performance marketing 16% through improved fraud controls searc
Slide 26: Delivery efficiencies | Significant progress & opportunity
Delivery efficiencies | Significant progress & opportunity What have we done? What has it delivered? Look forwards ● Rolled out multi pick-up stacking Reduction in cost ● Continue to use indirect and direct ● Combined inference and direct signals to reduce rider wait time 90 bps of sales (as % of GTV)
Slide 27: Overheads | Further cost optimisation to drive leverage
Overheads | Further cost optimisation to drive leverage What have we done? What has it delivered? Look forwards ● Foundational elements on process and procurement systems c.10% Average savings through RFP ● Better and more efficient partner and customer support through automation and GenAI ● Location
Slide 28: Bringing it together | Multiple levers to reach our target
Bringing it together | Multiple levers to reach our target Adjusted EBITDA margin Operating leverage 4%+ Marketing & overheads levers Cost of sales levers Drive operating leverage Increased marketing with scale Revenue levers efficiency/targeting Reduce rider wait time at merchant Improved tooling/ 2.
Slide 29: Q&A
Q&A
Slide 30: Appendix
Appendix
Slide 31: Financial KPIs (all operations - including Hong Kong)
Financial KPIs (all operations - including Hong Kong) £m Q1 23 Q2 23 Q3 23 Q4 23 H1 23 FY 23 Q1 24 Q2 24 Q3 24 Q4 24 H1 24 FY 24 Group Orders (m) 72 73 70 75 145 290 74 74 71 77 147 296 % year-over-year (9)% (3)% (1)% 0% (6)% (3)% 2% 1% 2% 3% 2% 2% GTV 1,746 1,761 1,697 1,858 3,507 7,062 1,830 1,859
Slide 32: Financial KPIs (continuing operations - excluding Hong Kong)
Financial KPIs (continuing operations - excluding Hong Kong) £m Q1 23 Q2 23 Q3 23 Q4 23 H1 23 FY 23 Q1 24 Q2 24 Q3 24 Q4 24 H1 24 FY 24 Group (ex-Hong Kong) Orders (m) 67 67 64 69 133 266 68 69 66 73 137 276 % year-over-year 2% 3% 4% 6% 3% 4% GTV 1,634 1,639 1,584 1,746 3,273 6,603 1,727 1,761 1,691
Slide 33: Disclaimer
Disclaimer This presentation may include forward-looking statements, which are based on current expectations and projections about future events. These statements may include, without limitation, any statements preceded by, followed by or including words such as "target", "believe", "expect", "aim",