Deliveroo's 2022 In Line, Guidance Light on Top-Line Growth; Shares Attractive

Following its fourth-quarter trading update in January, no-moat Deliveroo reported 2022 results with an adjusted EBITDA loss of GBP 45 million for the year (negative 0.7% of gross transaction value, or GTV, excluding recent market exits of Australia and the Netherlands) and GBP 6.6 million in the second half, in line with previous guidance. As a reminder, GTV for the year was up 9% (up 6% at constant currency) and orders down 2% (versus Just Eat Takeaway's GTV down 2% and orders down 12% in the same period). GTV and orders in its core U.K. and Ireland market were robust, up 9% and flat, respectively, implying market share gains (versus Just Eat's GTV down 3% and orders down 10% in the U.K. and Ireland) with more monthly active consumers on a sequential basis in the U.K. to 4.1 million from 3.9 million, and flat year on year mainly due to seasonality.