Zomato's consolidated net loss for Q3FY23 widened to Rs 347 crore against Rs 63 crore registered in the same quarter last year, the online food delivery platform announced on February 9. For Q2FY23, net loss was at Rs 251 crore.
The Gurugram-headquartered company's revenue from operations zoomed 75 percent to Rs 1,948 crore year-on-year (YoY) as against Rs 1,112 crore in the corresponding quarter last year. Sequentially, revenue improved by 17 percent as against Rs 1,661 crore reported for Q2FY23, Zomato said in an exchange filing.
Adjusted EBITDA loss increased to Rs 265 crore in the December quarter as compared to Rs 192 crore in the quarter ended in September 2022. Adjusted EBITDA loss stood at Rs 272 crore in the corresponding quarter of the previous year.
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Zomato said it still feels confident about reaching Adjusted EBITDA break-even (ex-quick commerce) by Q2FY24 as per their earlier estimate, adding that they have not changed their goal post of getting to Adjusted EBITDA margin of 4-5 percent of GOV in the food delivery business in the medium term.
For the food delivery business, the gross order value (GOV) growth was 21 percent year-on-year (YoY) and 1 percent quarter-on-quarter (QoQ), 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 30 percent YoY while declining. It declined 1 percent sequentially which the company said was due to an industry-wide slowdown in the food delivery business since late October (post the festival of Diwali)
Contribution margin (as a percent of GOV) improved from 4.5 percent in Q2 to 5.1 percent in Q3. The food delivery adjusted EBITDA grew significantly to Rs 23 crore compared to Rs 2 crore reported in Q2FY23. The EBITDA loss for food delivery in Q3FY22 stood at Rs 221 crore.
"The improvement in Contribution in Q3FY23 was largely driven by growth in AOV plus efficiencies on the cost side which more than compensated for marginally lower customer delivery charges," said Akshant Goyal, Chief Financial Officer, Zomato.
GOV for Blinkit, which Zomato acquired in August last year, grew 18 percent QoQ to Rs 1,749 crore while the revenue grew 28 percent. Adjusted EBITDA loss in quick commerce reduced to Rs 227 crore from Rs 259 crore in the previous quarter.
On February 9, the company's shares on NSE closed trading 0.6 percent higher at Rs 54.60.
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