Deliveroo’s financial filings reveal that it had an operating loss of around PS223.7M in 2020. It’s down by PS100M over the year prior and its gross transactions were PS4.1B which was up 64 percent year-over-year.
The clock has officially started moving toward Deliveroo’s plans to start its IPO in April. After announcing earlier in the week that it planned to list on the London Stock Exchange, today the company that serves food-on-demand, backed by Amazon as well as other companies announced its latest financials from its previous fiscal year and also it’s Expected Intention to Float (EITF) -the more formal document that details the two weeks that will pass before the time when the company will release its prospectus and, at the start of April, it will begin the next IPO.
DELIVEROO FILING SHOWS IT POSTED A LOSS OF £223.7M
It’s clear that Deliveroo isn’t making money. The company posted an unadjusted profit of PS223.7 million ($309 million) however that number dropped to more than PS100 million over the prior year, which it had deficits in the amount in the range of PS317 million ($438 million). The company did not disclose the revenues (sometimes called turnover) in its statement released today.
The company said it has served 6 million customers via its three-sided marketplace which comprises more than 115,000 takeaway restaurants, food outlets, grocery stores, and 100,000 customers at 800 locations spread across 12 markets.
Similar to that, Deliveroo saw a significant increase during a time when many restaurants were forced to close their doors and move to take-away options in the wake of COVID-19.
It claims that it has earned money on its “Adjusted EBITDA basis” over two quarters, with its overall gross profit growing by 89.5 percent during the second quarter, up to PS358 million ($495 million) against PS189 million in 2019.
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The company’s Gross Transparency Volume (total amount of money spent by customers buying food items) increased by 64 percent during the last quarter, reaching PS4.1 billion ($5.67 billion) and the run-rate for Q4 grew by a whopping PS5 billion. This is not surprising considering that Q4 was the time of the Christmas season, and it was the time that it was the U.K. market (Deliveroo’s main market and its home market) has been through not one, but two instances of shutting down in the period (the second one remains in place).
It also states that gross profit margin as a percentage of GTV has increased to 5.8 percent at the close of 2018 and is expected to rise by 8.8 By 2020 it will be 8.8 percent. Some markets have reached the 12% threshold.
“The company remains focused on investing in driving growth in a nascent online food market,” it wrote in the EITF however, I’m not sure that nascent is my preferred word. The drivers of Deliveroo are the most well-known of the delivery firms that operate in London. Deliveroo says that its restaurant and grocery segments comprise a market of PS1.2 trillion ($1.66 trillion) across the 12 sectors that which it offers its services. According to this figure, it’s claimed that just 3 percent of its sales will be made via online platforms, “equivalent to less than 1 out of the 21 weekly meal occasions being online.”
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The valuation of the company was higher than $7 billion at the time of the most recent round of fundraising which was a $180 million round that was funded by Durable, Fidelity, and others as of the start of the month of January.
It’s a massive leap and forms the foundation of the myths that surround technology are based upon (with inexhaustible hours of blood, sweat, tears, and lots of luck and a lot of luck, too). I had the privilege of getting to meet Will Shu, the CEO, and co-founder of Deliveroo.
He was trying his hand in the water at Deliveroo and was a bit perplexed by the pace of the company’s expansion, and the direction it was heading to. It’s interesting that he’s not forgotten the beginnings which is sure to aid in keeping the company’s focus during the midst of numerous opportunities and plenty of chances to disorient.
“I did not plan to be an entrepreneur or a CEO. I was not interested in startups and I didn’t study TechCrunch. My experience isn’t the same as those Silicon Valley types with a million ideas,” he noted in his letter included in EITF. “I have come up with a single idea. The idea was born of my discontent with myself. The idea that I was awed by. I wanted amazing food from the most amazing London restaurants.”
The prospectus will provide the amount the company intends to raise via its initial public offering and we’ll discover the figures within the next few days. The company, however, Deliveroo said that it plans to “invest in its long-term proposition by developing its core marketplace, enhancing its superior consumer experience, providing restaurant and grocery partners with unique tools to help them grow their businesses, and providing riders with the flexible work they value alongside security.”
The company is also making “dark kitchens” (which it market as editions); Signature, the white-label option available to restaurants offering delivery services through the company’s own website; Plus, a Prime-style subscription service, and an online supermarket which is predicted to grow into an extremely profitable market in Europe and the rest of the world.