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Zomato Q3 FY24 Results: Growth Hits a Speed Bump šØš Zomatoās Q3 numbers are out, and the results paint a picture of slowing momentum in its food delivery business. š Key Numbers: - Gross Order Value (GOV): Grew by just 2% QoQ to ā¹7,318 crore, down from a 3% growth in the previous quarter. - Order Volumes: Flat, indicating demand stagnation. -Average Order Value (AOV): Increased marginally, likely due to Zomato Gold benefits. - Adjusted Revenue: Up by 9% QoQ, thanks to improved monetization. - Adjusted EBITDA: Food delivery turned profitable for the fourth consecutive quarter, driven by cost optimizations. š The Challenges: 1ļøā£ Demand Slowdown: A muted 2% growth suggests that broad-based demand weakness is hitting both metros and non-metro markets. 2ļøā£ Volume Stagnation: Flat order volumes signal that market saturation or cautious consumer spending might be at play. 3ļøā£ Competitive Pressure: Swiggyās aggressive offers and discounts are intensifying the battle for market share. The Bright Spots: - Profitability Focus: Food delivery EBITDA margins improved as Zomato cut delivery costs and optimized discounts. - Zomato Gold Revival: The program added 16 million subscribers, offering some hope for boosting AOVs in future quarters. - Hyperpure Growth: Zomatoās B2B arm Hyperpure grew 8% QoQ, diversifying its revenue streams. Is there A Bigger Picture? š® Yes, with ā¹7,318 crore GOV, Zomato remains a leader, but the 2% QoQ growth is far from the 10%+ it enjoyed in earlier phases. For sustained growth, Zomato must: - Expand beyond urban hubs to capture untapped markets. - Double down on new revenue streams like grocery and dining-out services. - Navigate a weaker macroeconomic environment, which is dampening discretionary spending. š¬ Whatās your take? Is Zomato evolving enough to tackle these challenges, or is it stuck in a low-growth phase?
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