Delivery Hero finishes the year with strong final quarter
Orders almost doubling again
Delivery Hero SE ("Delivery Hero") today announces that orders in the fourth quarter of 2020 almost doubled YoY to a record 423 million (+96%), as the world's leading local delivery platform continued its strong growth trajectory. Own delivery accounted for 63% of those orders (2019 Q4: 44%), exceeding the expectation set at the beginning of the year. Delivery Hero's Q4 2020 total segment revenues grew 93% YoY to EUR 933 million, marking the eighth consecutive quarter of revenue growth of around 100%. GMV increased 70% YoY (83% YoY on a constant currency basis) to EUR 3.9 billion.
Delivery Hero
Niklas Östberg, CEO and Co-Founder of Delivery Hero, said: "We had a strong final quarter in a year that has been exceptional in many ways. While we were able to nearly double our orders and revenues, I'm particularly proud of the role our service has played during these challenging times: By keeping our communities safe and provided with food, supporting small businesses and providing job opportunities across the globe, we have really lived up to our values. Moving into 2021, I'm confident that we will continue our success story and execute on our ambition to deliver anything, locally."
Having ended the financial year 2020 with another strong quarter, orders for the full year reached 1.3 billion, representing an increase of 96% YoY. Moreover, GMV for the full year increased by 66% to EUR 12.4 billion (2019: EUR 7.4 billion), with total segment revenues reaching the upper end of the guidance at EUR 2.8 billion, up 95% YoY (2019: EUR 1.5 billion). The preliminary, underlying adjusted EBITDA margin prior to the additional investments, is expected to be at -16%, in line with the guidance of -14% to -18%. During the course of the year, the guidance for additional discretionary investments has been decreased twice from up to EUR 200 million initially, to eventually end up at EUR 115 million. The adjusted EBITDA margin for the Group, including those additional investments, is expected to be at -20%.
Also on a segment level, the ambition for 2020 is expected to be achieved. Europe should be break-even in the 2020 financial year, whereas MENA is currently expected to achieve an adjusted EBITDA of approximately EUR 99 million, thereby clearly exceeding the level of 2019, despite the negative impact from COVID-19 during H1 2020. Final numbers will be published together with Delivery Hero's Annual Report on 28 April 2021.
Quick commerce or q-commerce - the next generation of e-commerce - brings groceries and household items to customers below one hour but can be as fast as 10-15 minutes. Our continued commitment to invest into the part of q-commerce where we act as principal led to the company overachieving its target of operating 400 Dmarts (small Delivery Hero-owned warehouses located in strategically relevant locations for delivery) by the end of 2020. Finishing Q4 2020, Delivery Hero operated 491 Dmarts across the world, catering to evolving customer needs with an increased focus on convenience and speed of delivery.
On 2 February 2021, Delivery Hero received conditional regulatory approval from the Korea Fair Trade Commission with respect to the joint venture with South Korean Woowa Brothers Corp. Given the significance of this transaction for Delivery Hero and pending closing of the deal, which should take place during March 2021, an outlook for the financial year 2021 can only be published after the anticipated closing, latest together with the publication of the Annual Report for 2020 on 28 April 2021.
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