Zomato reported a net loss of Rs 346.6 crore in Q3 FY23.

Revenue from operations surged 69.66% to Rs 2056 crore in quarter ended 31 March 2023 from Rs 1211.8 crore reported in Q4 FY22.

Adjusted revenue grew 57% year on year to Rs 2,413 crore (33% YoY growth ex-quick commerce).

Total adjusted EBITDA loss reduced to Rs 175 crore in the fourth quarter of FY23 as compared with Rs 225 crore in Q4 FY22. Adjusted EBITDA loss (ex-quick commerce) was Rs 28 crore for the quarter (compared to Rs 225 crore in Q4 FY22).

Adjusted EBITDA margin improved to negative 7% in Q4 FY23 as against negative 15% posted in the same period last year.

In the food delivery business, Gross Order Value (GOV) growth was 12.23% YoY to Rs 6,569 crore during the period under review. Adjusted revenue stood at Rs 1,530 crore in Q4 FY23, registering a growth of 19.16% YoY.

Average monthly transacting customers grew 5.73% YoY to 16.6 million in Q4FY23 as compared to 15.7 million in Q4 FY22.

In a letter to shareholders, Deepinder Goyal, chief executive officer, said, “ We will continue with the same mindset as we look to further expand the Adjusted EBITDA margin (from the current 1.2%) to our stated goal of +4-5% of GOV (which would translate to ~INR 1,000 to 1,300 crores of annual cash operating profit at the current scale of the food delivery business).”

Hyperpure revenue zoomed 146.39% YoY to Rs 478 crore in Q4 FY23. Adjusted EBITDA margin improved to negative 9% in Q4 FY23 as against negative 23% in Q4FY23.

Meanwhile, Quick commerce business posted revenue of Rs 363 crore, up 121.34% as against Rs 164 crore in recorded in the corresponding previous quarter.

Moving on to Blinkit, Zomato said, “We have learnt that the Average Order Value (AOV) in this business will continue to swing up and down in the near to mid term due to multiple (mainly seasonal) factors. For example, AOVs will go down when there is a good harvest of vegetables (which leads to lower prices for F&V). Over time, as we get scale, we hope to be able to predict such swings better and mitigate the impact of these swings on our margins. We expect the AOV to increase QoQ in the current quarter (Q1FY24).”

On full year basis, the company reported a consolidated net loss of Rs 971.3 crore in FY23, as against a net loss of Rs 1,208.7 crore recorded in FY22. Revenue jumped 68.86% YoY to Rs 7079.4 crore in financial year ended March 2023.

The cash balance on a consolidated basis as at the end of 31 March 2023 was Rs 11,323 crore as compared to Rs 11,463 billion as at the end of 31 December 2022.

The company said that Q4FY23 is the first quarter where the business generated surplus cash (of Rs 40 crore) and the firm expects to continue going forward. The end of period cash balance will, however, depend on the changes in net working capital, which may continue to increase or decrease based on multiple factors, it added.

Zomato connects customers, restaurant partners and delivery partners. Customers use Zomato to search and discover restaurants, read and write customer generated reviews and view and upload photos, order food delivery, book a table and make payments while dining-out at restaurants. On the other hand, it provides restaurant partners with industry-specific marketing tools which enable them to engage and acquire customers to grow their business while also providing a reliable and efficient last mile delivery service. The company also operates a one-stop procurement solution, Hyperpure, which supplies high quality ingredients and kitchen products to restaurant partners.