Deliveroo Shares Soar on Solid Q4 Growth

Shares of the UK-based food delivery company Deliveroo PLC (GB:ROO) soared today following solid growth in Q4 2024. According to its update, Deliveroo’s GTV (gross transaction value) rose 7% year-over-year, with a 3% annual increase in order volume and a 4% growth in GTV per order, all at constant currency rates. Following the update, Deliveroo’s shares gained almost 5% as writing.

Deliveroo operates as a marketplace, connecting customers in the UK with local partners to facilitate the delivery of food and essential items.

Deliveroo Confirms FY Performance Meets Guidance

For FY24, Deliveroo confirmed that its trading is in-line with the guidance. The company expects its adjusted core earnings to reach the upper end of its projected range of £110-130 million. It also confirmed that it would achieve positive free cash flow for the year, aligning with its earlier guidance.

The company also reported a 6% growth in GTV for FY24, aligning with its forecast range of 5-9%.

Regionally, Deliveroo experienced GTV growth in both its UK and Ireland and international markets. In the UK and Ireland, GTV increased by 9% in Q4, supported by a 5% rise in orders. The company credited this success to its initiatives, leading to enhanced customer frequency and retention, despite ongoing challenges in the consumer environment.

Meanwhile, the company’s international GTV growth rose 5%, while the order volumes remained flat. Among the markets, the UAE and Italy showed sustained strength, with France experiencing slight improvement. However, Hong Kong faced challenges due to a tough competitive landscape.

Is Deliveroo a Good Stock to Buy?

According to TipRanks consensus, ROO stock has received a Moderate Buy rating based on four Buy and two Hold recommendations. The Deliveroo share price target is 180.9p, which is 34% above the current price level.

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