Prime Highlights:
- Shares surged 14% in extended trading, staging a strong rebound as investors focused on growth and long-term expansion plans.
- CEO Tony Xu expressed confidence in global integration efforts, highlighting accelerating growth at Deliveroo and continued investment in innovation and AI-driven features.
Key Facts:
- Revenue increased 38% year over year to $3.96 billion, reflecting sustained demand growth and strong marketplace performance.
- Total orders climbed 32% to 903 million, while net income rose to $213 million, up from $141 million a year earlier.
Background:
DoorDash shares climbed 14% in extended trading on Wednesday, reversing an earlier 10% decline after the company reported fourth-quarter results that fell short of Wall Street expectations.
The food delivery platform posted earnings of 48 cents per share, below the 59 cents analysts had expected. Revenue reached $3.96 billion, slightly under the $3.99 billion estimate. However, revenue still increased 38% from $2.87 billion a year earlier, reflecting continued demand growth.
Total orders rose 32% year over year to 903 million. Marketplace gross order value, which measures the total dollar value of orders, jumped 39% to $29.7 billion. Net income improved to $213 million, or 48 cents per share, compared with $141 million, or 33 cents per share, in the same period last year.
DoorDash expects its adjusted EBITDA for the first quarter to be between $675 million and $775 million. This is lower than the $802 million estimate from StreetAccount.
On the earnings call, CEO Tony Xu expressed confidence in the company’s investment strategy. He said that Deliveroo, the British delivery company DoorDash bought last year, is growing faster while keeping profits about the same.
Xu also outlined plans to build a unified global platform that integrates DoorDash, Deliveroo, and Wolt. He described the effort as complex and costly but necessary to improve user experience and support future innovation, including artificial intelligence features.
In recent quarters, investors have raised concerns about the company’s spending plans. DoorDash previously announced it would invest several hundred million dollars in its global technology platform and projects such as autonomous delivery.
The company gave weak short-term guidance, which disappointed the market. But it said it is focusing on long-term growth, improving its technology, and expanding globally.