In releasing its first-quarter results Thursday, DoorDash Inc. answered nagging questions about how well delivery can fare as the coronavirus pandemic subsides and diners begin to eat out again: pretty well.
The food-delivery app company said it had gross orders of $9.9 billion for the quarter, well above analysts’ expectations of $8.97 billion. That was more than three times its gross order volume of $3.08 billion in the year-ago quarter. In addition, its revenue nearly tripled, rising to $1.08 billion from $362 million in the year-ago quarter.
“We’re rooting for restaurants to reopen and succeed,” Prabir Adarkar, chief financial officer of DoorDash
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DoorDash shares rose sharply after hours, climbing nearly 8% after hitting a new intraday low but closing the regular session 2.2% higher at $115.49.
The San Francisco-based company reported a first-quarter net loss of $110 million, or 34 cents a share, compared with $129 million, or $2.92 a share, in the year-ago period. Adjusted Ebitda was $43 million, which the company stressed was its fourth straight quarter of Ebitda profitability. That compares to an adjusted Ebitda loss of $70 million in the year-ago quarter.
Analysts surveyed by FactSet had forecast a loss of 8 cents a share on revenue of $994.3 million.
The company also said orders from its non-restaurant businesses rose 40% over the last quarter, and now makes up more than 7% of all orders. Adarkar said the company, which launched convenience-store deliveries about a year ago, is now No. 1 in that category. He added that DoorDash also leads in the consumer-pickup business, which he said brings consumers back to stores.
Because of the encouraging trends it is seeing, the company raised its full-year outlook for gross order volume, to $35 billion to $38 billion, up from $30 billion to $33 billion. It did the same for Ebitda net income, raising its guidance to $0 to $300 million, up from $0 to $200 million.
Shares of DoorDash are down nearly 20% year to date, compared with an almost 10% increase for the S&P 500 Index
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