Tony Xu, co-founder and chief executive officer of DoorDash Inc.
David Paul Morris | Bloomberg | Getty Images
DoorDash stock rose over 10% in extended trading after the company reported 35% revenue growth in the first quarter, suggesting that the company’s core business of delivering takeout food can still grow even after pandemic-driven highs.
However, the stock was whacked during regular session trading on Thursday, dropping over 10% during a bad day for markets in general.
Here’s how Doordash did versus Refinitiv consensus estimates:
- Loss per share: $0.48 loss per share versus $0.41 loss per share expected
- Revenue: $1.46 billion versus $1.38 billion estimated
DoorDash said 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.
However, DoorDash 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.
In 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.
The company also said that it paid fewer incentives and promotions to attract delivery workers compared to the first quarter of 2021.