Zomato’s Q2 revenue increased by 62% while its net loss shrank to Rs 251 crore
- ByStartupStory | November 11, 2022
The net loss for food delivery operator Zomato dropped to Rs 251 crore for the third quarter of September from Rs 429.6 crore during the same quarter of the previous financial year. The business also disclosed that this is the first quarter in which its annualized revenue has surpassed $1 billion.Compared to the same period last year, revenue climbed by 62.2% to Rs 1,661 crore ($1,024 crore). In Q2FY23, compared to Q1FY23, the total adjusted profits before interest, taxes, depreciation, and amortization (Ebitda) loss was Rs 192 crore. The adjusted EBITDA loss for the quarter was Rs 60 crore.
“The restaurant and food delivery industry in India is still nascent, and we need to relentlessly execute to tap into the large opportunity. “I don’t want macro headwinds to be an excuse for us to innovate less,” co-founder and CEO Deepinder Goyal said of potential growth.
He continued by saying that the business needs to do better in a number of areas. “We should do more with less, ship higher quality products faster, listen to our customers better, and engage with our restaurant partners and delivery partners for feedback more often. We should take more multiplier risks and challenge existing paradigms,” he added. “The increase in contribution margin is driven by improvements on both the cost and revenue sides.” “This has been the result of scale and a heightened focus on profitability over the last few quarters, and in our view, none of these improvements in contribution margin are temporary in nature,” said the Chief Financial Officer of Zomato, Akshant Goyal.
Gross order value (GOV) growth for Zomato’s food delivery service was 3% quarter over quarter (QoQ) and 23% year over year (YoY), driven by increases in order volumes and average order value. Greater adjusted revenue growth of 8% QoQ and 27% YoY was caused by an increase in revenue per order. The contribution margin for the food aggregator increased to 4.5 percent in Q2FY23 from 1.2 percent in Q2FY22 and 2.8 percent in Q1 as a percentage of gross order value (GOV).
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