India’s Zomato misses Q4 revenue expectations on higher strategic expenses

Indian food delivery firm Zomato Ltd (ZOMT.NS) on Friday reported a smaller-than-expected rise in its fourth-quarter revenue, weighed by a jump in strategic expenses.

The company’s consolidated revenue from operations for the quarter ended March 31 rose 69.7% to 20.56 billion rupees due to better ad monetisation and higher customer delivery charges during the quarter, it said in an exchange filing.

However, analysts on average had expected a consolidated revenue of 20.7 billion rupees, according to Refinitiv IBES data. Total expenses rose nearly 43% in the quarter.

Chief Financial Officer Akshant Goyal in a statement said that a shorter quarter and the company shutting down in around 225 cities, along with higher marketing spends, resulted in a fall in monthly transacting customers in the quarter.

Gross order value (GOV), the total value of all orders placed online, rose 12.23% year-on-year in its food delivery business, and its quick commerce business Blinkit saw a 17% quarter-on-quarter increase.

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