Foodpanda parent achieves adjusted EBITDA breakeven in Q3 2022

Delivery Hero, the company behind food delivery major Foodpanda, posted around US$2.5 billion in revenue for the third quarter of 2022, a 28% surge compared to the same period last year. At the same time, its gross merchandise value (GMV) increased 12% year on year to US$11.7 billion.

The reported result includes that of Glovo, a European on-demand services app that Delivery Hero acquired late last year.

In line with former guidance, the firm’s platform business – which includes Foodpanda’s operations in Asia – broke even in the reported quarter. The company looks to generate between US$40.7 million and US$122 million in adjusted EBITDA in the next quarter from the business.

Photo credit: Foodpanda

In a statement, Delivery Hero said that it can maintain its positive performance due to its businesses outside Asia, which grew more than 30% in GMV compared to Q3 2021.

It saw 28% year-on-year GMV growth in Middle East & North Africa, 52% in the Americas, and 27% in Europe.

Another factor in the firm’s revenue growth is Foodpanda’s adtech services, Panda Ads. The feature is available in 11 markets across Asia since September this year.

With this, Delivery Hero aims to raise its EBITDA margin for the period in the range of -1.4% to -1.5% compared to GMV for its 2022 financial year. It’s lower than the -1.5% to -1.6% forecast that the company revealed earlier this year. It is also committed to reaching cash flow breakeven for the whole company during the second half of 2023.

See also: The key players in Southeast Asia’s quick commerce space

Correction (November 11, 4:40 p.m.): This article was updated to remove a Panda Pro statistic attributed to Panda Ads, a different vertical.