Deliveroo lifts guidance as orders soar in second quarter
Deliveroo this morning raised its guidance for the first year after a quarter in which the company said that orders increased nearly 90 per cent.
In a trading update, the takeaway app said that it was now on track to see gross transaction value (GTV) grow between 50 and 60 per cent this year, up from previous forecasts of 30 – 40 per cent growth.
Shares in the tech firm rose 4.4 per cent in early trading this morning.
As a result of the growth, Deliveroo said that it saw new opportunity for investment in the second half.
However, that means that its full year gross profit guidance will be in the lower half of previous estimates, the company said.
Deliveroo said that orders grew 88 per cent year on year at the group level to 78m in the second quarter of 2021.
In the UK and Ireland orders grew 94 per cent, year on year to 38m and in the Group’s international segment orders were up 83 per cent year-on-year to 40m.
The firm is expecting orders to return to pre-Covid levels as the year goes on and restrictions after lifted.
The update comes after Deliveroo’s disastrous London listing earlier this spring, in which shares plunged as much as 30 per cent on the first day of trading.
Before the Open: Get the jump on the markets with our early morning newsletter