Deliveroo said that orders jumped 88% to 78 million during its most recent quarter, however the food delivery firm has tempered its outlook for annual profit margins, as orders start to return to pre-pandemic levels.
In the company's second quarter, orders in the UK and Ireland grew 94% year on year to 38 million, while orders in the group's international segment grew 83% year-on-year to 40 million.
Gross Transaction Value
The company, which listed in London in March, said growth in its annual gross transaction value (GTV) — a measure of the total value paid by customers apart from tips — is expected between 50% and 60%, up from the previously forecast 30%-40%.
GTV grew 76% year-on-year at group level in the second quarter, it said, with UK and Ireland GTV rising by 87% and international GTV growing 65%
Further Investments
Deliveroo said that it 'sees an opportunity to make further discretionary investments into growth opportunities in the second half', and as a result of accelerating these investments in the second half of the year, 'along with an expectation that AOV reverts towards pre-COVID levels, we are confirming our full year gross profit margin guidance (as a % of GTV) and expect it to be in the lower half of our previously communicated range'.
The company maintained its annual gross margins forecast of 7.5% to 8%.
This is a second business update from Deliveroo after going public in a much anticipated stock market debut in March that saw its shares plunge 30%. The stock is currently down about 18% from its IPO price.
It recently announced plans to bolster its IT team with 400 new appointments in the UK.
Deliveroo is set to report its first-half results on 11 August.
News by Reuters, edited by ESM. For more Technology news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.
