Zomato’s Q3 Losses Widen 5.5X YoY

Zomato on Thursday reported its Q3 results which saw the restaurant aggregator’s losses widen to Rs 346.6 crore, a 5.5x increase year-on-year (YoY).

The company had posted Rs 63.2 crore in losses in the corresponding period in FY22. In Q2 FY23, Zomato had reported Rs 250.8 crore in losses.

The widening of losses is being attributed to company’s acquisition of Blinkit, which was completed in the quarter.

The company’s consolidated revenue from operations has increased 75 per cent to Rs 1,948 crore in Q3. While its net profit has risen five-fold in the quarter ended 31 December, 2022.

Adjusted Revenue grew 66 per cent YoY to Rs 23.63 billion (45 per cent YoY growth ex-quick commerce, 30 per cent YoY growth for food delivery).

Adjusted EBITDA loss (ex-quick commerce) was Rs 0.38 billion for the quarter compared to Rs 2.72 billion in Q3FY22 a year ago. Even after consolidating quick commerce (a business that didn’t exist last year), Adjusted EBITDA loss reduced to Rs 2.65 billion as compared to Rs 2.72 billion in Q3FY22 a year ago.

Adjusted EBITDA margin (ex-quick commerce) improved to -2 per centin Q3FY23 as compared to -19 per cent a year ago. Including quick commerce, Adjusted EBITDA margin improved to -11 per cent in Q3FY23 as compared to -19 per cent a year ago.

Zomato has seen a few exits recently. On the same, Deepinder Goyal, Founder & CEO, Zomato said, “Company building is not just about the journey of the business. It is also so much about its people’s personal journeys. Both these journeys take their own twists and turns. And sometimes, for some people, the distance between their form (their mindset and skillset) and the company’s context becomes such that it is necessary to take a break from each other.”