European Food Delivery Firm Delivery HeroThe company’s share price dropped Thursday following the announcement of earnings guidance which disappointed traders.

Germany’s company reported that it had generated 9.6 Billion Euros ($11 Billion) in net sales volume for the fourth quarter, an increase of 39% over last year. In the fourth quarter, revenues grew 66% to reach 1.9 million euros.

Delivery Hero’s total sales for the year were 35.4 billion euro, which is slightly more than its guidance. However, revenues rose 89% to 6.66 billion euros. This was roughly in line of expectations. However, its core profit margin adjusted came in at 2.2%. This was slightly less than the expected.

Delivery Hero shares fell around 29% on Thursday morning. Rival firms Just Eat Takeaway.comAnd DeliverooBoth fell 4% and 6.6%, respectively.

Market reaction was negative because of Delivery Hero’s guidance in 2022, according to analysts. Delivery Hero stated that it expected its platform business will reach breakeven. However, the core profit margin for Delivery Hero was between -1% and -1.2% in full-year guidance.

CNBC’s Susannah Streeter said that it takes just a tiny bump to get rid of the negative sentiment surrounding pandemic winners Delivery Hero. The projections for 2022, however, are not very optimistic.

She said that investors are losing patience with Delivery Hero on the long road to profitability. Delivery Hero also stated she would continue to invest heavily in order to slow down to profitability in light of heavy competition.

Investors are growing wary about lofty valuations in the tech sector — especially for loss-making companies like Delivery Hero — as central banks start hiking interest rates to tackle rising inflation.

The Bank of England was among the first to actIncreased rates are in effect once per month. again earlier this month. U.S. Federal Reserve indicated that they will raise interest rates as early as MarchThe European Central Bank is currently more dovish.

Delivery Hero CEO Niklas Altberg, when asked about the effect of rising inflation on the business said that it was not so affected. He said that the company is already operating in countries where inflation levels are “extremely high” such as Argentina and Turkey.

Delivery Hero will not need investors to fund its operations, Ostberg said on CNBC’s Squawk Box Europe that it already has a strong balance sheet and is sitting on several billion euros.

He said, “Our primary priority is growth and we’re increasing into profitability this fiscal year.”

We must ensure that we do not rely on the capital markets. We don’t wish to be forced into raising capital.

Food delivery has seen significant consolidation with many large companies purchasing smaller competitors to keep up with the market. Delivery Hero will be closing its doors at the end 2021. announcedIt could buy the majority of Spanish rival Glovo.

Delivery Hero’s performance in Germany has been difficult even though it launched within months. Ostberg stated that the company was “late to the party” and would need a 10- or 15-year investment.

CNBC spoke with Danni Shewson, financial analyst for AJ Bell. “In a market that is fiercely competitive investors were looking to bullish, not conservative from the top staff and the share price responded accordingly.”

There are certain bright spots in the latest update of its core food delivery company and key investments that should reward patience. However, today’s sale shows how nervous many investors are.