TIDMROO
RNS Number : 5922P
Deliveroo PLC
20 October 2021
20 October 2021
Deliveroo plc
Continued strong performance in Q3 2021
Performance Highlights
-- Strong performance in Q3 2021 with gross transaction value
(GTV) up 58% YoY in constant currency; orders were resilient
despite reopening, with a modest reduction in average order
value
-- Excellent initial traction from Deliveroo Plus partnership
with Amazon Prime ; number of Plus subscribers in UKI has more than
doubled since the partnership launched in mid-September
-- Further expansion of on-demand grocery offering including
launch of 'Hop' , Deliveroo's new rapid grocery service from
delivery-only stores launched in partnership with Morrisons
Full Year Guidance
-- Full year GTV growth: guidance increased to 60-70% growth (vs prior guidance of 50-60%)
-- Full year gross profit margin (as % of GTV): guidance
unchanged; remains in the range of 7.50-7.75%.
Will Shu, Founder and CEO of Deliveroo, said:
"We have continued to make good progress executing against our
strategy, resulting in strong performance in Q3. This quarter we
have partnered with Amazon to offer their Prime customers in the UK
and Ireland access to our Deliveroo Plus subscription programme. We
have also successfully launched a new rapid grocery service,
Deliveroo Hop, in partnership with Morrisons. These are just two
examples of innovations introduced this quarter that are
consistently improving our consumer value proposition.
While we are mindful of current and potential macroeconomic
disruptions and uncertainties, we expect further strong performance
in the remainder of the year and we are increasing our full year
GTV growth guidance. We remain excited about the opportunity ahead
and our plans to deliver better value to our consumers, help our
restaurant and grocery partners to grow, and provide further
opportunities for riders."
GTV and Orders
% Change % Change
==================== ====================
Q3 Q3 9M 9M
Reported Constant Reported Constant
2021 2020 currency currency 2021 2020 currency currency
====== ====== ========= ========= ====== ====== ========= =========
Group
GTV (GBPm) 1,594 1,035 54% 58% 4,980 2,739 82% 85%
Orders (m) 74.6 45.4 64% - 223.5 119.9 86% -
GTV per order
(GBP) 21.4 22.8 (6)% (4)% 22.3 22.8 (2)% 0%
=================== ====== ====== ========= ========= ====== ====== ========= =========
UKI
GTV (GBPm) 852 547 56% 56% 2,625 1,392 89% 89%
Orders (m) 35.8 22.6 59% - 107.2 57.3 87% -
GTV per order
(GBP) 23.8 24.2 (2)% (2)% 24.5 24.3 1% 1%
=================== ====== ====== ========= ========= ====== ====== ========= =========
International
GTV (GBPm) 742 487 52% 60% 2,355 1,347 75% 82%
Orders (m) 38.8 22.8 70% - 116.2 62.7 85% -
GTV per order
(GBP) 19.1 21.4 (11)% (6)% 20.3 21.5 (6)% (2)%
=================== ====== ====== ========= ========= ====== ====== ========= =========
Performance Review
1. Overview
Overall, Deliveroo produced a strong operating performance in Q3
2021. Gross transaction value (GTV) increased to GBP1,594 million,
up 54% (58% in constant currency) year-on-year. Growth in monthly
active consumers and orders continued to be healthy, up 56% and
64%, respectively. Taking a two-year view, orders in Q3 2021
increased by 171%, similar to the 172% two-year order growth
achieved in H1 2021 - demonstrating that growth momentum has been
maintained despite the easing of lockdown restrictions in most
markets. In Q3 2021, GTV per order decreased by 4% year-on-year in
constant currency, with average order values continuing to revert
towards pre-COVID levels.
Please click here for chart displaying Orders and GTV
http://www.rns-pdf.londonstockexchange.com/rns/5922P_1-2021-10-19.pdf
2. Segment Performance
Deliveroo manages its business on a geographic basis, rather
than on a product or market segmentation basis. The company
operates in two segments: the UK and Ireland (UKI) segment and the
International segment, comprising the remainder of the company's
markets.
UK and Ireland
In UKI, GTV was GBP852 million in Q3 2021, down from GBP921
million in Q2 2021 reflecting typical seasonality. In Q3 2021,
year-on-year GTV growth was 56% in constant currency, modestly
below order growth of 59% due to a slight decrease in average order
value. Taking a 2-year view (i.e. comparing to the respective
quarter in 2019), GTV growth in constant currency was 193% in Q3
2021 (Q2 2021: 212%, Q1 2021: 209%), and order growth was 182% in
Q3 2021 (Q2 2021: 184%, Q1 2021: 170%).
International
In International, GTV was GBP742 million in Q3 2021, down from
GBP818 million in Q2 2021 reflecting typical seasonality. In Q3
2021, year-on-year GTV growth was 60% in constant currency, below
order growth of 70% due to a decrease in average order value.
Taking a 2-year view (i.e. comparing to the respective quarter in
2019), GTV growth in constant currency was 155% in Q3 2021 (Q2
2021: 166%, Q1 2021: 183%), and order growth was 162% in Q3 2021
(Q2 2021: 163%, Q1 2021: 173%).
3. The Three Sides of the Marketplace
Consumers
Deliveroo's consumer base continued to grow compared to prior
years, with an average of 7.5 million monthly active consumers in
Q3 2021, up 56% compared to Q3 2020 and up 142% compared to Q3
2019. The decline in average monthly active consumers in Q3 2021
compared to Q2 2021 reflects typical seasonality, especially in
European markets. Despite the widespread removal of lockdown
restrictions in Q3 2021, monthly average order frequency remained
stable at 3.3 times per month.
Q1 Q2 Q3 Q4 Q1 Q2 Q3
Group 2020 2020 2020 2020 2021 2021 2021
=================== ======= ======= ======= ======= ======= ======= =======
Average monthly
active consumers 3.7 4.3 4.8 6.0 7.2 7.8 7.5
=================== ======= ======= ======= ======= ======= ======= =======
Year-on-year
growth in
MACs 28% 36% 52% 62% 95% 81% 56%
=================== ======= ======= ======= ======= ======= ======= =======
2021 vs 2019
growth in
MACs - - - - 148% 144% 142%
=================== ======= ======= ======= ======= ======= ======= =======
Monthly frequency 3.0 3.2 3.2 3.2 3.3 3.3 3.3
=================== ======= ======= ======= ======= ======= ======= =======
An important part of Deliveroo's consumer value proposition is
Deliveroo Plus, the consumer subscription programme that unlocks
access to unlimited free delivery for a fixed monthly fee.
Deliveroo Plus removes delivery fees as a barrier to ordering,
increasing order frequency and improving retention. In
mid-September 2021, Deliveroo launched a new partnership with
Amazon Prime, allowing all UK and Ireland Amazon Prime members to
sign up for free Deliveroo Plus membership for a year, with
unlimited free delivery on orders over GBP25/EUR25. In August 2021,
Deliveroo Plus members represented 15% of UKI monthly active
consumers. Since the launch of the Amazon Prime partnership on 15
September 2021, the number of Deliveroo Plus subscribers in UKI has
more than doubled, driven by conversion of existing Deliveroo
consumers to Plus as well as bringing new consumers to Deliveroo
for the first time.
Restaurants and On-Demand Grocery
Restaurant selection is another important part of Deliveroo's
consumer value proposition. The availability and choice to
consumers - on a neighbourhood-by-neighbourhood basis - continues
to increase. At the end of the period, Deliveroo worked with over
143,000 restaurant partner sites globally. Q3 2021 saw particular
challenges for restaurant partners in many markets, as they
contended with a full return of dine-in customers alongside
sustained high demand for delivery, as well as supply chain issues
and labour shortages.
In September 2021, Deliveroo announced a new rapid grocery
delivery service, launched in partnership with Morrisons.
'Deliveroo Hop' will operate from delivery-only grocery stores,
enabling deliveries in as little as 10 minutes, greater stock
accuracy, and a wider product range - including partner-branded and
own-label products such as Morrisons 'The Best' range. The service
benefits from a deep integration between Deliveroo's new grocery
management technology, existing logistics algorithms and network of
over 50,000 UK delivery riders, as well as Morrison's established
supply chain. Rapid grocery delivery will sit alongside Deliveroo's
existing and fast-growing on-demand grocery service, which already
delivers from over 10,000 partner grocery sites globally.
Riders
Riders are a vital part of Deliveroo's three-sided marketplace
and Deliveroo works with over 150,000 riders globally. In Q3 2021,
global rider satisfaction was 84%, with good application pipelines
and rider retention rates. Since 2018, Deliveroo has provided
riders with free and automatic accident and injury cover and
third-party liability insurance. During Q3 2021, Deliveroo extended
this free insurance to provide riders with enhanced protection in
several markets. The new insurance coverage includes earnings
support for riders working regularly with the company who are
unwell and unable to work for more than 7 days (backdated to day
1). In addition, insurance now entitles qualifying riders to a
one-off lump sum payment following the birth or adoption of a
child. Deliveroo is currently exploring extending these enhanced
entitlements to additional markets.
4. Outlook and Full Year Guidance
Following growth in H1 2021 that was materially ahead of
expectations, trading in Q3 remained strong. While mindful of
current and potential macroeconomic disruptions and uncertainties,
management expects further strong performance in the remainder of
the year. As such, Deliveroo is increasing full year GTV growth
guidance:
-- Full year GTV growth: guidance increased to 60-70% growth (vs prior guidance of 50-60%)
-- Full year gross profit margin (as % of GTV): guidance unchanged in the range of 7.50-7.75%.
Analyst and investor call
A conference call and webcast with Q&A for analysts and
investors will be held this morning at 09:00 BST / 10:00 CEST.
Registration details as follows:
Conference call:
https://secure.emincote.com/client/deliveroo/q3-2021/vip_connect
Webcast:
https://secure.emincote.com/client/deliveroo/q3-2021
The webcast will also be available to view at
https://corporate.deliveroo.co.uk/ . A replay will be made
available later.
Contacts
Investor Relations
David Hancock, VP Investor Relations - 07966 930716 or
investors@deliveroo.co.uk
Tim Warrington, Investor Relations Director - 07921 576395 or
investors@deliveroo.co.uk
Media Relations
Joe Carberry, VP Communications - 07787 561905
Romilly Dennys, Head of Corporate Communications, UKI - 07786
221309
Tulchan Communications, James Macey White, Jessica Reid, Mark
Burgess - deliveroo@tulchangroup.com
About Deliveroo plc ('Deliveroo' or 'the Company')
Deliveroo is on a mission to build the definitive online food
company. We want to be the platform that people turn to whenever
they think about food. Further information regarding Deliveroo is
available on the Company's website at
https://corporate.deliveroo.co.uk/ .
Additional Notes
1. All figures in this trading update are unaudited and exclude
Germany and Taiwan discontinued operations for the comparative
period.
2. All growth rates reflect a comparison to the three-month
period ended 30 September 2020 unless otherwise stated.
3. References to "Q1" are to the three-month period ended 31
March 2021, unless otherwise stated. References to "Q2" are to the
three-month period ended 30 June 2021, unless otherwise stated.
References to "Q3" are to the three-month period ended 30 September
2021, unless otherwise stated. References to the "year", "financial
year" or "2021 financial year" are to the financial year ending 31
December 2021 and references to the "last year", "last financial
year" or "2020 financial year" are to the financial year ended 31
December 2020 unless otherwise stated.
This announcement 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", "intend", "may",
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"likely", "should", "would", "could" and any other words and terms
of similar meaning or the negative thereof. These forward-looking
statements are subject to risks, uncertainties and assumptions
about the Company and its subsidiaries and its investments,
including, among other things, the development of its business,
trends in its operating environment, and future capital
expenditures and acquisitions. The forward-looking statements in
this announcement speak only as at the date of this announcement.
These statements reflect the beliefs of the Directors, (including
based on their expectations arising from pursuit of the Group's
strategy) as well as assumptions made by the Directors and
information currently available to the Company. Further, certain
forward-looking statements are based upon assumptions of future
events which may not prove to be accurate and none of the Company
nor any member of the Group, nor any of such person's affiliates or
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END
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October 20, 2021 02:00 ET (06:00 GMT)
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