DoorDash stock soars on revenue beat
Shares of DoorDash skyrocketed 32% on Wednesday after it reported better-than-expected revenue in Q4.
The company also posted substantial order numbers and added new users, suggesting high food delivery services.
Here are the key numbers:
- Loss per share: 46 cents vs. 26 cents expected in a Refinitiv survey of analysts
- Revenue: $1.4 billion vs $1.29 billion expected
When the coronavirus pandemic hit, many people found themselves staying in to avoid contact with other people. This created a massive market for on-demand food delivery services such as DoorDash and Uber Eats. The pandemic slashed the number of restaurant visits by 40%, contributing to the rapid growth of on-demand services.
DoorDash turned out to be one of the biggest beneficiaries of stay-at-home trends during the pandemic. Many people relied on food delivery services instead of eating out at restaurants. The company capitalized on the elevated demand by extending beyond restaurants into delivering things like pet supplies, flowers, alcohol, and groceries.
Customers continued to spend more money on orders and deliveries during the fourth quarter. Fourth-quarter gross order value increased 37% year-over-year to $11.3 billion. It surpassed analysts’ projected $10.7 billion. It notched 368 million orders, higher than the 362 million orders analysts’ expected.
Overview of the situation in DoorDash
The company launches marketplace gross order value for the full year to be between $49 billion and $51 billion. According to analysts surveyed by FactSet, it is in line with consensus estimates of $49.5 billion.
DoorDash on Wednesday posted better-than-expected revenue for the fourth quarter, as well as total orders that topped analysts’ expectations. The food delivery company also announced that it would offer all current and future employees shares of stock, aiming to retain and motivate employees amid a fierce labor market. The company has faced stiff competition from rivals, including Uber Eats and Amazon.com’s restaurant delivery service.
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