DoorDash Inc. handily beat third-quarter revenue expectations and reported all-time highs in total orders and gross order value, though the food-delivery company’s quarterly loss was wider than expected in results reported Thursday.
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shares shot up about 15% higher in after-hours trading. They had risen nearly 6% in the regular session to close at $47.77. DoorDash stock has fallen 68% year to date, compared with a 21% decline for the S&P 500 index.
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In an interview with MarketWatch, Ravi Inukonda, DoorDash’s vice president of finance, said Thursday that the delivery-platform company’s numbers show that it is doing well despite economic uncertainty — and despite what analysts’ and other third-party data estimated — and is “generating a level of growth and cash that makes us an anomaly in today’s market.”
Gross delivery bookings for Uber Technologies Inc.’s
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Uber Eats business, for example, rose about 7% year over year, while DoorDash’s gross order value grew 30% to $13.53 billion, exceeding the $13.24 billion that analysts surveyed by FactSet had expected. Total orders rose 27% to 439 million, beating the 433 million expected by analysts.
Inukonda also said the company’s “pace of new-consumer acquisition continues to be strong,” and that order frequency grew. According to the company’s letter to shareholders, its monthly active users grew quarter over quarter and year over year, and members of its DashPass subscription service rose from the previous quarter to a record high, though the company did not disclose specific numbers. The most recent publicized numbers: 125 million monthly active users and 10 million DashPass members.
DoorDash reported a third-quarter net loss of $295 million, or 77 cents a share, compared with a net loss of $101 million, or 30 cents a share, in the year-ago period. The loss was mostly attributable to stock-based compensation costs. Adjusted Ebitda, or earnings before interest, taxes, depreciation and amortization, was $87 million, which the company said was helped by a decline in delivery-worker costs — which include the costs of worker acquisition, pay and benefits — both quarter over quarter and year over year. That figure compares with $86 million in the same period a year ago. Revenue rose to $1.7 billion from $1.28 billion in the year-ago quarter.
Analysts surveyed by FactSet had forecast a loss of $247 million, or 59 cents a share, on revenue of $1.63 billion. They had also expected adjusted Ebitda of $58 million.
The company reported that it had $99 million in free cash flow in the third quarter, beating expectations of $71 million, and Inukonda noted that DoorDash has had free cash flow in six of the last seven quarters.
DoorDash expects fourth-quarter gross order value of $13.9 billion to $14.2 billion, and adjusted Ebitda of $85 million to $120 million. Analysts had forecast a fourth-quarter loss of 44 cents a share on revenue of $1.68 billion; $13.7 billion in gross order value; and adjusted Ebitda of $91 million.
