ZOMATO Q3 RESULTS 2024: REPORTS PROFITS AGAIN, REVENUE JUMPS

Zomato reported its Q3FY24 numbers on Thursday just before the market closing. The share price closed 3.28% higher at Rs 145.00 per share. Let us look at everything in detail about Zomato's Q3FY24 results. 

About Zomato

Zomato is an online food delivery and restaurant discovery platform, headquartered in India. It allows users to explore nearby eateries, view menus, and place orders for delivery or takeout. Zomato operates in various countries, connecting millions of diners with diverse culinary experiences.

Crucial parameters

• PE: 146.80
• 52-week high: Rs 147.45
• Market Cap: Rs 1,23,782.11 crore
• ROE: 3.86

Share price movement

In the last six-months, Zomato's shares have beaten NIFTY50 gains and jumped 48%. In last one year, the stock had an exceptional rally of 194% and nearly tripled investor's wealth. Since its listing in July 2021, the Zomato stock price is up 12%.

How has Zomato performed in Q3FY24?

Let us look at Zomato's December numbers in detail:

Revenue: The company reported adjusted revenue of Rs 3,609 crore, up 12% sequentially and 53% YoY. The company consolidated topline (Adjusted revenue) continues to grow meaningfully above their stated expectation of 40% YoY. At this point, the company expect the topline to continue growing at 50%+ YoY.

EBITDA: The company reported adjusted EBITDA of Rs 125 crore - it was positive for third consecutive quarter. In the year-ago period, Zomato reported a negative adjusted EBITDA. In the previous quarter, the adjusted EBITDA was Rs 41 crore. Annualised Adjusted EBITDA profit is now Rs 1,000+ crore. They expect both margin expansion and GOV growth to drive further improvement in absolute profits.

Profits: Zomato posted a profit for the third consecutive quarter. The profits for Q3FY24 stood at Rs 138 crore. In the December quarter of last year, the company reported a loss of Rs (347) crore. 

GOV: Gross Order Value (GOV) refers to the total monetary value of all orders placed on a food delivery platform during a specific period before any deductions or adjustments are made. It includes the sum of the prices of all the items ordered, any applicable taxes, delivery fees, and other charges.

GOV increased by 47% YoY. For Q3FY24, it was Rs 12,886 crore compared to Rs 8,766 crore reported in the same quarter last year. Food delivery GOV grew 27% YoY (6.3% QoQ), quick commerce GOV grew 103% YoY (28% QoQ) and Going-out GOV grew 154% YoY (26% QoQ).

Gold Member Update: The company is using the Gold Membership to acquire and reacquire customers and hence the pricing of the program is much lower than they want it to be.

Contribution Margin Improvement: Margins have continued to expand due to incremental improvements in other aspects of the business, as has been the case over the last four quarters since the launch of the Gold program. Introduction of a platform fee for all customers (including Gold members) in July 2023 has also helped in margin improvement.

Cash balance: The cash balance on a consolidated basis as of the end of the December quarter was Rs 12,015 crore as compared to Rs 11,463 crore in Q3FY23.

Segment updates

• Blinkit Updates: GOV grew 28% QoQ (103% YoY) largely driven by the robust uptick in demand that they witnessed due to the multiple festivals and occasions in the quarter. They also added 40 net new stores this quarter, taking the total store count to 451 at the end of the quarter. Despite the increase in store count, their average GOV per day, per store grew 17% QoQ reflecting healthy same store sales growth.

• Hyperpure Updates: Hyperpure Revenue grew 15% QoQ (104% YoY) driven by growth in both the core restaurant supplies business and the relatively newer quick commerce opportunity.