DoorDash Shares Pop After 35% Sales Growth

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Shares of DoorDash were heading higher in extended trading yesterday after the company revealed a 35% revenue growth in Q1.

The growth suggests that DoorDash’s business is still growing even after the pandemic driven highs.

Shares gained over 10% after hours but were weak during regular session trading on Thursday, dropping over 10%.

Here’s how DoorDash did versus Refinitiv consensus estimates: The company reported a loss per share of $0.48, compared to a loss of $0.41 expected.

Revenue at $1.46 billion was better than the $1.38 billion expected.
The company said that the total number of orders it delivered during the quarter rose 23% to 404 million and that it added the most new customers to its service since the first quarter of 2021, which was during a significant wave of Covid infections in the United States.

The company also however, reported a significantly slower rate of revenue growth than it did in the same quarter in 2021, when net sales nearly tripled.

DoorDash said that its EBITDA, which excludes certain costs such as its legal fights over worker classification and taxes, rose to $54 million from $43 million in the 2021 March quarter.

Looking ahead to the current quarter, DoorDash expects EBITDA between $0 and $100 million.

The company said in a letter to investors that DoorDash is taking market share in the food delivery market in the United States, and that it plans to spend the cash created from food deliveries to move into other categories, including groceries, alcohol and retail delivery.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.

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