DoorDash reported strong first-quarter results and guidance for order growth after the bell on Wednesday as the food delivery giant poured more money into new technology to attract customers.
Shares rose 12% following the report.
Here’s how the company compares to LSEG ratings:
- Earnings per share: 42 cents vs. 36 cents expected
- Net worth: $4.04 billion vs. $4.14 billion expected
For the current quarter, DoorDash expects total market order value, which tracks the dollar value of orders on its platform, to be between $32.4 billion and $33.4 billion. That was up from the $32.43 billion GOV forecast by analysts.
The food delivery company also guided for $770 million to $870 million in EBITDA. The midpoint reached the $830 million expected by analysts.
Revenue rose 33% from $3.03 billion a year earlier, while total orders jumped 27% to $933 million, but missed analysts’ $954 million estimate. Net income fell to $184 million, or 42 cents per share, from $193 million, or 44 cents per share, a year earlier.
DoorDash is spending heavily on new features and services as it builds a single platform technology stack that includes its latest global acquisitions. It is also spending billions to expand its global footprint, develop artificial intelligence capabilities, and maintain a competitive edge against rivals such as Uber He eats.
“We expect these efforts will allow us to invest more effectively, operate more efficiently, and drive higher levels of growth in the communities we serve,” DoorDash said in a press release Wednesday.
DoorDash’s recent big-ticket acquisitions include restaurant reservation platform SevenRooms and British delivery company Deliveroo. Last year, DoorDash also introduced an autonomous robot as it scales delivery options.
Investors have previously challenged the company’s aggressive spending plans, worried that new technology investments will take time to pay off. CEO Tony Xu strongly defended those plans, and Wall Street gave it a stamp of approval last quarter.
Amid the recent war in Iran, DoorDash joined a number of delivery companies that launched programs to help drivers feeling the pressure of rising gas prices. DoorDash said it expects expenses of more than $50 million in the second quarter plan, which it plans to finance “at least in part by adjusting investments in other areas.”
For the current quarter, DoorDash is targeting total market order value, which tracks the dollar value of orders, between $32.4 billion and $33.4 billion. Analysts forecast $32.43 billion in GOV.
DoorDash also guided for $770 million to $870 million in EBITDA, which is in the middle of the $830 million expected by analysts.
DoorDash’s GOV rose 37% from a year ago to $31.6 billion and beat analysts’ $31.5 billion estimate. The company’s net income reached 51.9%, ahead of the average of 51.6%.
DoorDash stock chart for one day.
