DoorDash Stock Surges as Results Beat Estimates, Analyst Praises ‘Industry-leading Execution’ By Investing.com

Shares of DoorDash Inc (NYSE:) are up more than 6% in premarket trading Friday after the food delivery company reported better-than-expected Q1 revenue and adjusted EBITDA.

DASH reported a loss per share of 48c, up from a 34c loss per share in the same period last year. The company’s Q1 revenue came in at $1.46 billion, up 35% YoY and above the consensus projection of $1.38 billion.

The number of orders totaled 404 million in the period, up 23% YoY and above the expected 394.5 million.

For the second quarter, DASH expects an adjusted EBITDA of $0 to $100 million, while analysts were looking for $82.5 million. The company expects marketplace gross order value in the range of $12.1 billion to $12.5 billion, compared to the analyst estimates of $12.11 billion.

DoorDash expects FY adjusted EBITDA from $0 to $500 million, compared to the expected $291.9 million. FY marketplace gross order value is anticipated in the range of $49 billion to $51 billion, up from the previous guidance of $48 billion to $50 billion, and compared to the consensus estimates of $49.54 billion.

DASH expects to close its deal with Wolt in the second quarter, though it warned of “significant uncertainty” related to the impact of factors like inflation, higher interest rates, gas prices, and labor shortage.

Morgan Stanley analyst Brian Nowak said that the DASH earnings report demonstrated “industry-leading execution (users, DashPass, GOV).”

“We think this stronger than expected topline was a result of share gains in the US market and strength in core US Restaurant and DashPass. We highlighted the importance of DASH’s profit leading core US Restaurant business as a driver of dollars to invest and flow through to investors in our initiation and (based on DASH’s 1Q:22 shareholder letter) expect more of the same to come,” Nowak added in a note.

Goldman Sachs analyst Eric Sheridan continues to see DASH “as a category leader in local commerce/logistics.”

“Two main themes are likely to dominate DASH’s business performance in the years ahead: 1) short-term it will be the rate of GOV & revenue growth deceleration in a post pandemic world; & 2) long-term it will be their success in building a wider array of products/services and scaling a broader local commerce platform,” Sheridan wrote in a note.

By Senad Karaahmetovic