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Earnings Results: DoorDash orders hit record high, leading to revenue beat

DoorDash Inc. said Thursday that its business continues to grow, with total orders for the first quarter increasing 23% year over year to top 400 million for the first time, leading to a beat on revenue but a larger loss than expected.

The delivery-platform company said first-quarter gross-order value increased to $12.4 billion, exceeding analysts’ expectation of $11.7 billion, on 404 million orders, more than the 396.7 million orders analysts expected. DoorDash also said it added more new consumers than any quarter since the first quarter of 2021, driving monthly active users and DashPass members to new highs, though 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%

rose as much as 10% after hours, after falling more than 10% in the regular session to close at $73.15, an all-time low. The company’s stock has fallen about 50% year to date.

In a letter to investors, the company’s top executives said DoorDash gained market share, according to third-party data. YipitData said its email receipt data does show DoorDash market gains year over year, with the company now at 57% of the delivery market share in the U.S., while competitors Uber Technologies Inc.’s
UBER,
-4.52%

Uber Eats and Just Eat Takeaway.com’s
TKWY,
-11.69%

Grubhub have 31% and 11%, respectively.

On the earnings call, DoorDash Chief Executive Tony Xu and Chief Financial Officer Prabir Adarkar said the company’s business is resisting inflationary pressures and a continued coronavirus-pandemic recovery.

“If you step back, monthly active users, DashPass members and order frequency are at all-time highs,” Adarkar said. “That speaks to the resilience of our platform.”

Xu added that “merchants continue to see DoorDash as a way to gain sales even though people are going into restaurants.”

Adarkar also said that unlike ride-hailing, DoorDash is not facing any supply issues, and that the company’s costs to “acquire new Dashers is the lowest it has been in the last four quarters. We don’t compete with ride share for Dashers.”

DoorDash reported a first-quarter net loss of $159 million, or 48 cents a share, compared with a loss of $110 million, or 34 cents a share, in the year-ago period. Revenue grew to $1.46 billion from $1.08 billion in the year-ago quarter.

Analysts surveyed by FactSet had forecast an adjusted loss of 21 cents a share on revenue of $1.38 billion. DoorDash does not provide adjusted earnings per share numbers.

Adjusted Ebitda was $54 million, compared with $43 million in the year-ago quarter and above analysts’ expectation of $40 million. For DoorDash, Ebitda, or earnings before interest, taxes, depreciation and amortization, excludes additional items such as legal costs related to its ongoing battles over worker classification and reserves for collection of taxes that it does not expect to recur.

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

See: Lyft stock plunges 26% after forecast, rider numbers come up short

Also: Uber lost $6 billion to start the year, but reports a rebound in ride-hailing and no issues with driver supply

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