Press Stories: DoorDash Surpasses Estimates, Yet Experiences Share Drop Following Significant Surge

DoorDash Exceeds Delivery Order Estimates, but Shares Tumble

DoorDash Inc., the popular food delivery platform, has surpassed analysts’ expectations with its impressive performance in the fourth quarter. The company reported a 23% increase in total delivery orders, reaching a staggering 574 million. Moreover, the gross value of these orders jumped 22% to $17.6 billion, surpassing even Wall Street’s estimates.

Despite these positive results, DoorDash experienced a significant drop in its shares, plummeting as much as 12% in extended trading. Analysts at Evercore ISI highlighted that the company’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $363 million fell short of exceeding the high end of the company’s forecast. This marks the first time this has happened since the fourth quarter of 2022.

DoorDash has been diligently investing in expanding its offerings in new categories and international markets. Additionally, the company has been focusing on building its advertising business. These efforts have paid off, as DoorDash has achieved an all-time high of over 37 million monthly active users, along with a noticeable increase in average order frequency.

In terms of revenue, DoorDash saw a substantial 27% increase in the quarter, generating $2.3 billion. While this slightly exceeded estimates, CEO Tony Xu acknowledges that there is still work to be done. Enhancing consumer awareness of DoorDash’s non-restaurant delivery services and expanding its presence in overseas markets remain key areas for improvement.

Looking ahead, DoorDash expects a gross order value of $18.5 billion to $18.9 billion for the current period. However, adjusted EBITDA is projected to be between $320 million and $380 million, slightly below expectations.

DoorDash’s performance in the fourth quarter demonstrated impressive growth, surpassing delivery order estimates and generating significant revenue. Despite the drop in shares, the company remains committed to expanding its reach and improving consumer awareness, aiming to solidify its position as a global leader in the delivery industry.