In releasing its first-quarter results Thursday, DoorDash Inc. answered nagging questions about how well delivery can fare as the coronavirus pandemic subsides and diners begin to eat out again: pretty well.
The food-delivery app company said it had gross orders of $9.9 billion for the quarter, well above analysts’ expectations of $8.97 billion. That was more than three times its gross order volume of $3.08 billion in the year-ago quarter. In addition, its revenue nearly tripled, rising to $1.08 billion from $362 million in the year-ago quarter.
“We’re rooting for restaurants to reopen and succeed,” Prabir Adarkar, chief financial officer of DoorDash
told MarketWatch. “It’s possible for that to happen and for people to still want delivery. We’re seeing that those two things can coexist.”
DoorDash shares rose sharply after hours, climbing nearly 8% after hitting a new intraday low but closing the regular session 2.2% higher at $115.49.
The San Francisco-based company reported a first-quarter net loss of $110 million, or 34 cents a share, compared with $129 million, or $2.92 a share, in the year-ago period. Adjusted Ebitda was $43 million, which the company stressed was its fourth straight quarter of Ebitda profitability. That compares to an adjusted Ebitda loss of $70 million in the year-ago quarter.
Analysts surveyed by FactSet had forecast a loss of $63 million, or 8 cents a share, on revenue of $994.3 million.
DoorDash also said orders from its non-restaurant businesses rose 40% over the last quarter, and now makes up more than 7% of all orders. Adarkar said the company, which launched convenience-store deliveries about a year ago, is now No. 1 in that category. He added that DoorDash also leads in the consumer-pickup business, which he said brings consumers back to stores.
Because of the encouraging trends it is seeing, the company raised its full-year outlook for gross order volume, to $35 billion to $38 billion, up from $30 billion to $33 billion. It did the same for Ebitda net income, raising its guidance to $0 to $300 million, up from $0 to $200 million.
Another question for the company as it navigates the changing nature of the pandemic relates to regulatory issues, such as restaurant-commission caps. Adarkar said he’s starting to see a lifting of those price controls, and that “we expect them to continue to fall away.”
Shares of DoorDash are down nearly 20% year to date, compared with an almost 10% increase for the S&P 500 Index