DoorDash Inc. announced strong growth in the second quarter on Thursday, claiming that its meal delivery business is still thriving despite the current economic climate. However, the company’s loss was worse than Wall Street had anticipated.
While the delivery-platform firm suffered a more significant loss than anticipated, DoorDash (NYSE:DASH), which completed its acquisition of Finland-based Wolt in the second quarter, surpassed revenue and other forecasts with its results report.
“It’s a very tough macro environment out there, but we’re coming off a record quarter in terms of orders.” said Ravi Inukonda, vice president of finance, in an interview with MarketWatch on Thursday.
Analysts projected that the $12.84 billion gross order value was surpassed by $13.1 billion. Orders grew to 426 million, exceeding the 419 million analysts had predicted.
Because DoorDash offers delivery from various categories, including prepared food, convenience, and more, Inukonda said he is optimistic that the firm is well-positioned to handle what he sees as weakening consumer spending in the third quarter and the remainder of the year.
Additionally, he expressed satisfaction with Wolt’s growth of 50% year over year, which he claimed was quicker than that of its competitors in the European market.
After increasing by more than 2% during the regular trading session to close at $81.29, close to a three-month high, DoorDash shares increased by more than 13% after hours.
In contrast to a loss of $102 million, or 30 cents per share, at the same time last year, the firm reported a loss of $263 million, or 72 cents per share. Wolt was blamed for $45 million of that loss by DoorDash. In the most recent quarter, revenue increased to $1.6 billion from $1.24 billion.
According to FactSet’s survey of analysts, a loss of $195 million, or 21 cents per share, on $1.52 billion in revenue was expected. Although some analysts estimate earnings on an adjusted basis, DoorDash does not offer adjusted earnings per share figures.
Although lower than the $113 million in the same quarter last year, adjusted Ebitda of $103 million was higher than analysts’ expectations of $58 million.
Earnings before interest, taxes, depreciation, and amortization, or Ebitda, for DoorDash, do not include other factors such as legal fees associated with ongoing labor categorization disputes, fees associated with tax collection efforts, or fees associated with an intellectual property settlement.
DoorDash anticipates adjusted Ebitda of $25 million to $75 million for the third quarter and a market gross order value of $13 billion to $13.5 billion. On average, analysts predicted an adjusted Ebitda of $51 million, a gross order value of $13.19 billion, a loss of 22 cents per share on revenue of $1.58 billion, and an adjusted Ebitda of $51 million.
For the second time this year, DoorDash increased its gross order volume forecast for the entire year to a range between $51 and $53 billion. That exceeds economists’ highest estimate of $52.37 billion.
Shares of DoorDash have declined by more than 45% this year, compared to a 13% decline in the S&P 500 index (SPX) during the same time frame.
Featured Image: Megapixl © Andreistanescu
