Zomato, which reported its Q3’2022 results late yesterday, hasn’t seen any respite on the stock markets, despite a decent performance. Losses have shrunk, order volume has grown significantly as users preferred at-home ordering than dine-out and revenues have increased. But the stock, which was already trading towards the bottom end, slumped a further by nearly 5%.
The food delivery platform reported a consolidated loss of ₹63.2 crore for the quarter ended December (Q3FY22), which is almost a fourth of the ₹352.6 crore that the company had reported in the same quarter last year.
Revenue from the operations came in at ₹1,112 crore, up 82.7% against ₹609.4 crore logged in the corresponding quarter of the previous fiscal. On a year-on-year (“YoY”) basis, Zomato saw a 78% growth in Adjusted Revenue to ₹1420 crore ($190 million). However, on a sequential quarter-on-quarter (“QoQ”) basis, it was a flat quarter. Revenue from operations grew by ~9% QoQ, while the customer delivery charges de grew by 22%. This was driven by ₹7.5 per order reduction in customer delivery charges in Q3 FY22 as compared to Q2 FY22.
“The number of orders grew 93 percent YoY and 5 percent QoQ. Average order value (AOV, which includes customer delivery charges) shrunk by ~3% QoQ, mostly on account of a reduction in customer delivery charges,” the company said in its earnings release.
Adjusted EBITDA loss reduced to ₹270 crore ($36 million) in Q3 FY22 as compared to ₹310 crore ($41 million) in the previous quarter (Q2 FY22) driven by “rationalizing spends” across various businesses and functions. Gross Order Value (“GOV”) grew by 84.5% YoY and 1.7% QoQ to ₹5500 crore ($733 million) in Q3 FY22.
Cash in hand looks strong, with the company sitting nicely on a cash pile of $1.2Bn, and is hence not looking to raise any additional investments in the foreseeable future.