Deliveroo: Top-Line Growth as Expected With Profit Slightly Ahead

Deliveroo's fourth-quarter fiscal 2023 trading update showed its gross transaction value rose 4% and orders were flat year over year. Within this, the U.K. and Ireland segments continued to outperform, especially compared with competitors on a year-over-year basis. This segment's GTV growth was 7% and orders were up 1% versus Just Eat Takeaway's GTV up 5% and orders down 2% in the same period. This implies robust market share gains on a year-over-year basis, but a change of market share dynamic on a sequential basis. GTV was up 8% for Just Eat Takeaway versus 7% for Deliveroo in the U.K. The international segment, about 40% of GTV, continues to lag the U.K. and Ireland with orders flat versus 5% down in the third quarter and GTV up 1% versus 1% down in the third quarter. Revenue take rates continued to decline, by 90 basis points versus 60 basis points in the third quarter on a year-over-year basis due to customer value proposition investments, which the company had previously flagged.