Deliveroo PLC (LON:ROO) said it expects the rate of growth as lockdowns are eased, although the extent of the deceleration remains uncertain.
The food delivery service admitted that it is difficult to say how much of the recent performance was driven by the “special circumstances” and shutdowns across its markets.
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It said that it continues to operate in an uncertain environment given that it’s unclear how fast and how soon many of these restrictions will be lifted.
In fact, it kept full-year guidance as set out in the prospectus, with annual gross transaction value (GTV) surging 30-40% with gross margins of 7.5-8%.
“We have a lot of work ahead of us to both grow the business over the long term, and to prove ourselves to the markets,” chief executive Will Shu was reported as saying by Reuters.
In the quarter to 31 March, group orders rocketed 114% to 71mln with GTV up 130% to £1.65bn compared to the same period in 2020.
The monthly active consumer base has grown 91% year-on-year to 7.1mln, with ‘Plus’ subscribers (a premium service that skips delivery fees) accounting for a tenth of the total.
UK and Ireland saw GTV zooming up 142% to £852mln, with London delivering a 120% increase.
The tech unicorn reached over 60% of the UK population, adding over 6mln people to its coverage, after setting out to reach two-thirds of the country by the end of 2021.
In the international segment, GTV increased 119% to £794mln.
Deliveroo did not comment on the recent protests and strikes organised by riders demanding better working conditions, but it noted that UK rider satisfaction is at an all time high of 89% as of the end of March.
The company works with over 100,000 riders and over 117,000 restaurants globally.
It is also expanding its grocery offering, which achieved GTV growth of 700%, and now accounts for a tenth of total GTV in the UK and Ireland, where it works in 1,000 sites.
Deliveroo noted that 80% of consumers acquired through grocery go on to transact with restaurants on the platform.
"Optimistic investors may see all of the growth on display as evidence the firm can reach the scale required for profitability. The problem is there’s still no clarity on when that might happen. And if you’re a takeout company that can’t make money when everyone is forced to stay at home, when can you?" commented Freetrade analyst David Kimberley.
"Then there are the employment law hurdles. It doesn’t matter if rider satisfaction levels are at all time highs if you’ll be forced to make massive changes to their contracts, particularly if those alterations are likely to hit your bottom line."
"To give them their due, Deliveroo has acknowledged that’s likely to be the case and, as the past 12 months have shown, making short-term predictions isn’t easy. But investors will still want to see some guidance on what a profitable Deliveroo looks like. At the moment, it’s hard to understand how the company gets to that point."
Shares dipped 1% to 266.58p on Thursday morning.
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