DoorDash Stock Jumps Over 20% After Strong Earnings Report

Summary

  • The stock price of food delivery company DoorDash (NYSE: DASH) surged over 20%, a day after a solid quarterly earnings report.
  • The company’s profits increased by 198% YoY to US$1.1billion in Q1.
  • Its marketplace gross order value has risen 222% to US$ 9.9 billion, it said in a release.

The stock of American food delivery service DoorDash Inc. (NYSE: DASH) surged more than 23% to US$142.265 at 2:29 pm ET on Friday, May 14, a day after it reported a robust earnings growth.

The Florida-based company’s Q1 revenues surged 198% YoY to US$1.1billion. DoorDash made a profit despite shareholders’ expectations that clients will slash home deliveries and return to restaurants.

More than two million dashers, and delivery workers who work on an hourly basis, could earn US$2.5 billion, as per the release on Thursday. Dashers per hour income has gone up by 40%.


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DoorDash’s Q1 Highlights

Total revenue has grown 198% to US$1.1 billion yearly. Total orders have gone up 219% to 329 million. And market place gross order value (GOV) has risen 222% to US$ 9.9 billion, the company said in the release on Thursday. 

GAAP gross profit rose 233% to US$493 million from last year’s US$148 million. GAAP net loss was US$110 million, compared to US$129 million in the same period of the previous year.

Adjusted EBITDA was US$43 million as compared to last year’s US$70 million.

Pic Credit: Pixabay.


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What Does DASH Expect In Quarter 2?

It expects marketplace GOV to be in the range of US$9.4 billion to US$9.9 billion. And adjusted EBITDA will be in the range of US$0-US$100 million. Take rate is also expected to go up.

Marketplace GOV for the year 2021 will be in the range of US$35 billion to US$38 billion. And adjusted EBITDA will be US$0 million to US$ 300 million.

Also Read: Doordash Share Price Set At $102, Becomes Third-Largest American IPO In 2020

Stock Performance

DoorDash has a market capitalization of US$46.99 billion. Its revenues were US$970 million, and EPS was US$4.05 as of December 31, 2021. Its price-earnings ratio is -15.63 and is expected to be -139.44 for 2021. The P/E growth rate is 88.77 for 2021.

Dash has pointed out that the market conditions are favorable for it. Customers are ordering food through its app more often than earlier. They are also spending a reasonable amount of time on each order than they would earlier. Its DashPass section has seen double the number of subscribers in the year and is a significant reason for its growth.

The company has shown 40% growth in Q/Q in the marketplace section under which it delivers gifts, grocery, flowers, pet, and alcohol.

Also Read: DoorDash Diversifies, Beauty Products now in the kitty: A Glance at its COVID-19 Journey

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