Deliveroo – “pleased to announce” recommended offer. Er, what about for the IPO investors?…

It is now announced that, at a price of 180p per share, “the board of directors of DoorDash, Inc., and the board of directors of Deliveroo plc are pleased to announce that they have reached agreement on the terms of a recommended final cash offer to be made by DoorDash for the entire issued and to be issued share capital of Deliveroo”. How ‘pleasing’ is this move by Nasdaq-listed DoorDash for Deliveroo (ROO)?

Deliveroo (#ROO) – recommended 180p per share offer from DoorDash, Inc.

Deliveroo (#ROO) – Q1 emphasises “acceleration in order growth”, though also notes “investments to capture future growth opportunities”

Deliveroo (#ROO) – 2024 swing to small profit, 2025 “GTV growth anticipated to be high-single digits percentage growth (in constant currency)”

Deliveroo (#ROO) – to exit Hong Kong via “sale of certain assets to foodpanda and the closure of other assets”

Deliveroo (#ROO) – Q4 gross transaction value +6% YoY, FY adj. EBITDA “expected to be towards the top end of guidance range”

Deliveroo (#ROO) – Q3 Gross Transaction Value +5% YoY, maintains FY guidance including “positive” free cash flow

Deliveroo (#ROO) – Q1 gross transaction value +5% YoY, FY guidance maintained

Deliveroo (#ROO) – ‘B’ shares conversion, to have just one class of shares in issue

Deliveroo (#ROO) – 2023 still a loss though reduced to £32m, reckons 2024 “improvement in growth through the year”

Deliveroo (#ROO) – Q4 gross transaction value +4% YoY, notes spend on promotional marketing and in consumer fees

Deliveroo (#ROO) – tender offer to return full £250m at 130p per share

Deliveroo (#ROO) – Q3 gross transaction value +3% YoY, maintains FY guidance

I may use Deliveroo before the end of this year, but don’t expect me to buy its shares!

Back in April, I observed tatDeliveroo (ROO) is “still hoping you will spend your money” with it. The good news for it from today’s first half numbers is that revenue is up 5% year-on-year and its adjusted EBITDA is now positive. The less good news is that it is still making a loss and generating a negative free cash flow.

Deliveroo (#ROO) – H1 still a loss on revenue +5% YoY, proposed £250m capital return

Deliveroo and Rank Group are both still hoping you will spend your money with them

I see that Deliveroo (ROO) is out with a trading update this morning. If you read my update yesterday on its peer Just Eat Takeaway.com (JET), you know the general hopes of one day making profit and free cash flow…but not yet. I am personally amazed that Deliveroo’s share price is up year-to-date, but then again it is massively down since the comedy IPO of just over two years ago.

Deliveroo (#ROO) – Q1 YoY revenue +4%, gross transaction value -1%, argues adjusted EBITDA “weighted to H2”

The comedy continues at Deliveroo

Whilst I continue to very occasionally use Deliveroo (ROO) to deliver an alternative family meal, my guess is that the two or three times a year level will slow a bit further in 2023. And I reckon we are not the only people doing this. As for the company’s shares, I have long been very cautious of this name with its comedy 2021 IPO and, after nearly reaching a 400p share price in August that year, they have been correctly lurking below a 100p share price level for the last six months.

Deliveroo (#ROO) – 2022 adj. cash burn slightly increased!, notes “uncertain” macroeconomic outlook

Keep avoiding Deliveroo shares

I have pretty much had the same view on Deliveroo (ROO) shares since its comedy IPO in 2021: by all means have a Deliveroo delivery a couple of times a year, but don’t buy the shares! I last said that in August when the shares were just below a one quid price and, despite lower bond yields and better larger cap markets since, the stock is still about the same price today. And you will not be surprised to know that today’s update is still banging on about how the online food delivery company will be profitable…at some point later this decade!