DoorDash Delivers Record Results as People Continue to Order In; Stock Jumps
DoorDash delivered its strongest quarter since going public in 2020, reporting record revenue and orders, as well as its narrowest loss.
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DoorDash projects core profit above estimates on steady demand
By Granth Vanaik
November 1, 20239:09 PM GMT+1Updated 27 min ago
Illustration picture of Doordash logo
Doordash logo is seen on a smartphone in front of displayed Japan flag in this illustration picture taken June 9, 2021. REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing Rights
Nov 1 (Reuters) - DoorDash (DASH.O) forecast fourth-quarter core profit above estimates after topping quarterly revenue expectations on Wednesday, boosted by an uptick in customer orders for food, convenience items, and groceries.
Shares of the company rose about 10% to $83.17 in extended trading.
People are using the option of ordering food and grocery items from the comfort of their homes, a habit stimulated by the pandemic that has helped boost revenue for delivery firms, which are now looking to stabilize their profits.
DoorDash expects fourth-quarter adjusted EBITDA, a key measure of profitability, of between $320 million and $380 million, compared with analysts' estimates of $253.3 million.
The company's efforts to invest more in improving its products and services as well as partnerships with brands such as Sephora and ALDI have also helped it grow faster and increase its market share in the United States.
"We are on track to generate over $1 billion in adjusted EBITDA and more than 2 billion orders this year," CFO Ravi Inukonda told Reuters.