Zomato Q1 results: Gross order value touch Rs 4,540 Cr, with net revenue of Rs 844 Cr, loss of Rs 356 Cr
, food delivery unicorn and dining out discovery company, reported net revenue of Rs 844 crore for the first quarter of FY22, while the loss during this three-month period between April and June stood at Rs 356 crore even as it registered gross order value (GOV) of Rs 4,540 crore from its India business.
Zomato registered a revenue growth of 22 percent as compared to the previous sequential quarter i.e., January to March, and the company noted that making a year-on-year comparison was not rational as last year, during this period, the country was under a total lockdown.
However, the losses for Zomato expanded from Rs 131 crore in the fourth quarter of FY21 to Rs 356 crore in the first quarter of FY22, which the company attributed to higher expenses of employee stock options.
Deepinder Goyal, Founder & CEO, Zomato
The adjusted revenue of Zomato for the first quarter stood at Rs 1,160 crore, which was a 26 percent quarter on quarter growth. Adjusted revenue is the sum of revenues from operations plus the customer delivery charges.
“Last week, we delivered a billion orders on Zomato. It took us six years to get to this milestone and we hope it takes us much less time to deliver the next billion. The fact that over 10 percent of these billion orders were delivered only in the last three months makes us confident about getting to the next billion much sooner,” the statement from Zomato said.
The share price of Zomato closed at Rs 125.20 on the National Stock Exchange on Tuesday which was decline of 4.13 percent.
In a statement to the stock exchanges, Zomato said revenue growth was largely on the back of growth in its core food delivery business, which continued to grow despite the severe COVID-19 wave. On the other hand, COVID-19 significantly impacted the dining-out business in Q1 FY22, reversing most of the gains the industry made in Q4 FY21, Zomato said.
Zomato said the India food delivery business continues to remain contribution positive, even though the contribution margin reduced slightly in Q1 FY22 as compared to the previous quarter on account of growth investments, in addition to the costlier business environment in which this growth was achieved.
The GOV of Zomato grew by 37 percent on a quarter-on-quarter basis. GOV is defined as the total monetary value of all food delivery orders placed online which includes taxes, customer delivery charges, gross of all discounts, excluding discounts.