Zomato said its net losses rose over 168% from the previous quarter as it incurred a net loss of Rs 360 crore even as the company’s adjusted gross revenue increased 26% QoQ to Rs 1,160 crore in April-June.
In its first-ever quarterly earnings report since going public in July, Zomato has announced an adjusted gross revenue of Rs 1,160 crore comprising Rs 844 crore of revenue from operations and Rs 316 crore worth of customer delivery charges.
The announcement came the day company founder and CEO Deepinder Goyal declared they had made their 1 billionth delivery. Nearly 10% of these were delivered in the last quarter itself. Thus, it has taken the company six years to reach the billion order milestone.
95% of the company’s total operating revenue was contributed by its India business while the UAE and the rest of the world contributed 4% and 1% respectively. This is a major drop from the 8% contribution of these geographies to the firm last quarter.
Zomato reported an exceptional loss of Rs 16 crore in the June quarter, which was on account of movements in the foreign exchange rate in one of the company’s subsidiaries operating in a hyperinflationary economy. The company did not reveal the name of the country and the subsidiary which resulted in this exceptional loss.
Zomato’s gross order value, which is the total value of all food delivery orders placed online on its platform in India and includes taxes, customer delivery charges, gross of all discounts excluding tips, grew by 37% from the previous quarter, from Rs 3,310 crore to Rs 4,540 crore.
On its gross order value of Rs 4,540 crore, Zomato made Rs 758 crore of operational revenue (in standalone financials), estimating an average commission rate of 20% and taking into consideration GST and discounts added in the gross order value.
It should be noted that this is an estimate, calculated on the basis of the details available in Zomato’s financial report and actual numbers might vary.
The company’s adjusted EBITDA loss increased by 42% from Rs 120 crore in Q4 to Rs 170 crore in Q1. This was attributed to the losses in its dining out segment owing to the COVID-19 imposed lockdowns which forced restaurants to shut down, and the company’s investment in growth in the HyperPure business.
Notably, the adjusted EBITDA loss amounted to 15% of Zomato’s revenue in Q1(April-June) as compared to 13% in Q4 (January-March).
Zomato’s employee benefits expense also rose by 16% from the previous quarter from Rs 191 crore to Rs 221 crore in Q1. The company said it had more than 300,000 delivery executives in July, the highest in its lifetime.
The company’s contribution margin in the food business declined, though it was still positive. Zomato did not disclose the specific numbers for this metric.