Delivery Hero Earnings: Fiscal 2023 Results in Line; Management Confident on Midterm Liquidity

Delivery Hero published its fiscal 2023 results, in line with Feb. 5 ad-hoc preliminary results. Its gross merchandise value was up 6.7% and 6.8% in constant currency, respectively, and revenue was up 15.7% in constant currency in both periods, in line with guidance. Adjusted EBITDA exceeded EUR 250 million in fiscal 2023 with an adjusted EBITDA margin of 1.1% in the second half of 2023 and 0.6% in 2023, including a negative hit from hyperinflationary accounting. Delivery Hero reiterated fiscal 2024 guidance of adjusted EBITDA of EUR 725 million-EUR 775 million versus EUR 738 million in our model, GMV growth of 7%-9% versus 8% in our model, revenue growth of 15%-17% versus 13% in our model, and positive free cash flow that does not include interest income and expenses. Free cash flow excludes stock-based compensation, which amounts to about 0.8% of GMV for Delivery Hero and should be perceived as the true cost of running the business (EUR 360 million during 2024 in our model).