Talabat's Q3 Revenue Reaches $1B Amid Food and Grocery Surge

Post by : Bianca Suleiman

In a remarkable quarter, Talabat has showcased strong growth, driven by significant order volumes in its food delivery and grocery-retail sectors. The latest results from the third quarter reveal a notable escalation in revenue, margins, and net income, underscoring robust consumer appetite across the region.

The group’s gross merchandise value (GMV) reached an impressive $2.4 billion in Q3, reflecting a 26% increase compared to the previous year, with a constant-currency growth rate of 27%. Revenue soared 31% to $1 billion, while Adjusted EBITDA rose 21% to $154 million. Net income also climbed 31% to $119 million, depicting stable growth across all operations.

A surge in customer activity and elevated order frequency were significant contributors to this growth. Talabat Pro, the company’s subscription service, has gained traction, leading to enhanced user engagement. The GCC markets remain the primary driver, accounting for 81% of the overall GMV.

While still smaller, the grocery and retail divisions experienced growth exceeding 40%, outpacing the 20% growth observed in the food delivery segment. Despite this accelerated growth in grocery and retail, adjusted EBITDA margins stood at 6.4% of GMV, with net income margins at 4.9%, reflecting the typical lower gross margins in the sector, buoyed by operational efficiencies.

Adjusted net income reached $112 million, marking a 15% increase year-on-year. Adjusted free cash flow was reported at $99 million, slightly reduced from last year due to tax liabilities and adjustments from previous quarter working-capital inflows.

Talabat also noted high engagement levels, with over a third of customers utilizing various offerings like food and groceries. More than a quarter of active users have subscribed to Talabat Pro, responsible for almost half of the total GMV. Premium users are increasingly active, averaging over 30 orders per month.

Looking forward, Talabat has reiterated its annual projections, anticipating constant-currency GMV growth of 27–29% alongside revenue expansion between 29–32%. Adjusted EBITDA and net income margins are expected at 6.5% and 5%, respectively, with a minimum dividend payout set at $400 million.