(Reuters) – German food delivery company Delivery Hero <DHER.DE> raised its 2019 revenue guidance after reporting a third-quarter sales beat as increased investments helped boost its order volumes.
The Berlin-based company said it recorded a ramp-up in order volumes thanks to its own delivery capabilities and targeted customer acquisition investments.
“We continue to allocate resources to the markets with the most compelling long-term opportunities,” Chief Executive Niklas Östberg said in a statement.
Delivery Hero increased its full-year revenue guidance to a range between 1.44 billion euros ($1.61 billion) and 1.48 billion euros, compared to a previous target to reach the top of the range of 1.3 billion euros to 1.4 billion euros.
The company reported third-quarter revenue at 391 million euros, an increase of 117% on a constant-currency basis and above the 360 million euros expected on average by analysts in a Refinitiv poll.
The firm maintaned its outlook for earnings before interest, taxes, depreciation and amortisation (EBITDA), but said it expected to reach the lower end of the previously announced range because of the accelerated investments.
The Europe segment is expected to reach adjusted EBITDA break-even during Q4 2019, Delivery Hero added.
Delivery Hero shares were up about 3% in pre-market trading.
(Reporting by Zuzanna Szymanska in Gdansk; Editing by Muralikumar Anantharaman & Shri Navaratnam)