Talabat (TALABAT) Q4 2024 earnings summary

Executive summary

• Achieved strong Q4 and full-year 2024 results, exceeding or meeting all IPO guidance and analyst consensus across key metrics.

• Achieved double-digit growth in GMV and revenue, maintaining leadership in the MENA on-demand delivery market across eight countries.

• Group reported strong revenue and profit growth, with significant expansion in both GCC and non-GCC markets.

• Multi-vertical platform expansion and new app experience drove customer acquisition and loyalty.

• Strong profitability and cash flow generation supported by operational efficiencies and AdTech revenue.

Financial highlights

• GMV grew 23% year-over-year to $7.4 billion, with revenue up 32% to $3 billion and adjusted EBITDA up 55% to $500 million.

• Net income rose 64% year-over-year to $350 million, with margin expansion to 4.7% of GMV.

• Adjusted EBITDA margin expanded to 6.7% from 5.3% year-over-year.

• Dividend of $110 million proposed for Q4 2024, representing a 90% payout ratio of Q4 adjusted net income.

• Ended 2024 with over $400 million in cash and zero debt.

Outlook and guidance

• Reiterated 2025 GMV growth guidance of 17%-18% and revenue growth of 18%-20% at constant currency.

• Adjusted EBITDA margin guidance for 2025 set at 6.5%-7%; net income margin at 5%-5.5% of GMV.

• Minimum dividend payout of $400 million planned for 2025, subject to approvals.

• Adjusted free cash flow margin guidance at 6%-6.5%, factoring in a 15% effective tax rate.

• Guidance excludes InstaShop, pending transaction closure.