Zomato Q2 loss narrows to Rs 251 crore, revenue jumps 62%

Food delivery services provider Zomato on November 10 said its consolidated net loss for the quarter ending September 2022 narrowed to Rs 250.8 crore against Rs 434.9 crore registered in the same quarter last year.

Its revenue from operations zoomed 62.20 percent to Rs 1,661.3 crore from Rs 1,024.2 crore in the corresponding quarter last year, the company said in an exchange filing.

The company said “adjusted” EBITDA loss increased to Rs 192 crore in Q2FY23 as compared to Rs 150 crore in Q1FY23. The increase in loss was on account of the consolidation of quick commerce losses.

For the food delivery business, the gross order value (GOV) growth was 3 percent quarter-on-quarter (QoQ) and 23 percent year-on-year (YoY), driven by growth in both order volumes and average order value. Growth in revenue per order led to a higher adjusted revenue (for food delivery) growth of 8 percent QoQ and 27 percent YoY.

Contribution margin (as a percent of GOV) improved from 2.8 percent in Q1 to 4.5 percent in Q2, Zomato said. As a result, the food delivery adjusted EBITDA hit break-even in Q2.

“The increase in contribution margin is driven by improvements on both cost and revenue side. This has been the result of scale and heightened focus on profitability over the last few quarters. In our view, none of these improvements in contribution margin is temporary in nature,” said Akshant Goyal, Chief Financial Officer, Zomato.

GOV for Blinkit, which Zomato acquired in August this year, grew 26 percent QoQ to Rs 1,482 crore while the revenue grew 44 percent QoQ. Adjusted EBITDA loss in quick commerce reduced to Rs 259 crore from Rs 326 crore in the previous quarter.