Delivery Hero: Revenue Growth Ahead Leads to Upgraded Guidance

Delivery Hero published its first-quarter trading update, with gross merchandise value up 8% in constant currency and revenue up 21% in constant currency (both excluding hyperinflation accounting), ahead of the company's compiled consensus by 2.5% and 5%, respectively. The outperformance was mainly driven by Middle East/North Africa and Europe. Given the solid revenue growth, Delivery Hero upgraded its fiscal 2024 guidance of total revenue growth to 18%-21% from 15%-18% compared with 13% in our model. Guidance on 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, and positive free cash flow that does not include interest income and expenses remains unchanged.