Summary
- DoorDash expands in grocery, retail, and international markets, boosting order value
- Shares of the company rose 13% in extended trading
- Co beats Q1 gross transaction value and core profit expectations
(Reuters) – DoorDash on Wednesday forecast second-quarter marketplace gross order value above analysts’ estimates, helped by resilient demand for delivery services and the company’s expansion in grocery, retail and international markets, sending its shares up about 13%.
The company also beat estimates for quarterly adjusted profit and marketplace GOV, a measure of the total dollar value of orders placed on its platform.
Demand for delivery has held up as consumers increasingly prioritize convenience, including for non-essential items, boosting orders for online grocery delivery services.
“Consumers’ desire for convenience continues to be a powerful tailwind for DoorDash’s business,” eMarketer analyst Rachel Wolff said.
Earlier in the day, peer Instacart forecast second-quarter gross transaction value largely above Wall Street expectations, while Uber which owns Uber Eats, reported quarterly delivery-segment revenue above estimates.
DoorDash expects marketplace GOV in the second quarter to be between $32.4 billion and $33.4 billion, compared with analysts’ expectations of $31.8 billion.
“Demand continues to be quite strong … Q2 is off to a good start, (we) feel good about the demand patterns that we’re seeing on the business,” said CFO Ravi Inukonda on a post-earnings call.
For the current quarter, DoorDash expects adjusted operating earnings before interest, taxes, depreciation, and amortization (EBITDA) to be in the range of $770 million to $870 million, the midpoint of which is a touch below analysts’ estimate of $822.5 million.
The company said it expects the gross cost of its Dasher gas relief program to exceed $50 million due to higher gas prices.
DoorDash last month launched the emergency relief program to help U.S. gig workers grappling with surging oil prices stemming from the U.S.-Iran war.
The company reported adjusted earnings of 42 cents per share for the first quarter ended March 31, beating analysts’ estimate of 36 cents per share, according to data compiled by LSEG.
Quarterly revenue came in at $4.04 billion, below analysts’ estimates of $4.14 billion.
Reporting by Koyena Das in Bengaluru; Editing by Tasim Zahid
