Tony Xu, co-founder and CEO of DoorDash Inc., smiles during the Wall Street Journal Tech Live conference in Laguna Beach, California, on Oct. 22, 2019.
Martina Albertazzi | Bloomberg | Getty Images
DoorDash shares closed up more than 15% Thursday, a day after the company beat Wall Street’s top- and bottom-line expectations.
The company reported $2.2 billion in revenue, ahead of the $2.1 billion analysts were expecting, according to LSEG, formerly known as Refinitiv. It posted a loss per share of 19 cents, beating the consensus expectation of a loss per share of 40 cents.
DoorDash reported a net loss of $73 million, an improvement from the $295 million net loss, or a loss of 77 cents per share, it reported in the year-ago quarter.
DoorDash also reported 543 million total orders, up 24% year over year from 439 million orders, though that’s down from the 27% growth in the year-ago quarter.
“When you look at every category of spend, food is one that everyone has to spend in,” said CEO Tony Xu in the earnings call. “Sure, one may argue that you don’t have to spend it on delivery but what we tend to see is that there is also the macro trend of convenience increasing in the direction of greater convenience.”
Xu said in a call with analysts there haven’t been “any immediate or noticeable impacts” to the increasing popularity of weight-loss drugs such as Wegovy on the market.
JPMorgan analysts said in a note to investors Thursday that the business is seeing greater efficiencies, especially in the U.S. restaurant business. They said DoorDash’s fourth-quarter Marketplace GOV outlook of $17 billion to $17.4 billion surpassed expectations by about 3% and implies 18% to 20% year-over-year growth. DoorDash’s Marketplace GOV is defined as the total value of orders.
“The company is witnessing acceleration across the business against an uncertain macro backdrop, and cohort behavior remains healthy among both new & existing users,” the analysts said, noting they still maintain a neutral rating on the stock but are “incrementally positive” on the company’s ability to accelerate the business and improve margins.
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