October 5, 2022
Chicago 12, Melborne City, USA
Finance

DoorDash orders hit record high, leading to revenue beat

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DoorDash Inc. On Thursday, it said its business was growing steadily, with first-quarter total orders growing 23% year-over-year to reach the top 400 million for the first time, resulting in lower revenue but greater losses than expected.

The delivery-platform company said its first-quarter gross-order value rose $ 12.4 billion, surpassing analysts ‘expectations at $ 11.7 billion, with 404 million orders exceeding analysts’ expectations of 396.7 million orders. DoorDash added that it added more new subscribers than any other quarter since the first quarter of 2021, taking monthly active users and DashPass members to new heights, although it did not update those numbers. The company ended last year with 25 million users and 10 million DashPass subscribers.

Shares of DoorDash DASH,
-10.40%
After an increase of 10% after hours, closed at $ 73.15 after falling more than 10% in the regular session, which is the lowest ever. The company’s stock has fallen nearly 50% so far.

In a letter to investors, the company’s top executives said DoorDash had gained market share, according to third-party data. YipitData said its email receipt data showed a year-over-year market gain for Dordash, where the company now owns 57% of the delivery market share in the United States, while competitor Uber Technologies Inc.’s UBER,
-4.52%
TKWY of Uber Eats and Just Eat Takeaway.com,
-11.69%
Grubub has 31% and 11%, respectively.

In the earnings call, Dordash chief executive Tony Xu and chief financial officer Prabir Adarkar said the company’s business was resisting inflationary pressures and the ongoing coronavirus-epidemic recovery.

“If you step back, monthly active users, dashpass members and order frequencies will be at an all-time high,” Adarkar said. “It speaks to the resilience of our platform.”

Xu added that “merchants see Dordash as a way to make sales even though people are going to restaurants.”

Adarkar added that unlike Ride-Hailing, Dordash is not experiencing any supply problems, and “the company’s costs to acquire new dashers are the lowest in the last four quarters. We do not compete with ride shares for dashers.”

DoorDash reported a net loss of $ 159 million, or 48 cents per share, in the first quarter, compared to a loss of $ 110 million or 34 cents per share in the same period a year earlier. Revenue rose to 1.46 billion from $ 1.08 billion in the same quarter last year.

Analysts surveyed by Factset have forecast a consistent loss of 21 cents on শেয়ার 1.38 billion in revenue shares. DoorDash does not provide consistent earnings per share number.

Consistent Ebitda was 54 million, up from $ 43 million in the same quarter a year ago and above analysts’ expectations of $ 40 million. DoorDash excludes additional items such as Ebitda, or reserves for legal costs and tax collection related to the ongoing war on employee classification, for earnings before interest, taxes, devaluation and payment, which it does not expect to repeat.

For the second quarter, Dordash expects gross-order value between $ 12.1 billion and 12.5 billion, and consistent Ebitda “between $ 0 and $ 100 million.” The company raised its full-year forecast gross-order value from $ 48 billion and $ 50 billion to $ 49 billion and $ 51 billion, respectively.

See: Lyft stock plunges 26% after forecast, rider numbers shrink

Also: Uber lost $ 6 billion to start the year, but returns to ride-hailing and says driver supply problems

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