DoorDash added users, surpassed sales forecasts in Q4

By AP News

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DoorDash on Wednesday posted better-than-expected sales for its fourth quarter thanks to its growing active-user base and an expansion of its delivery options.

DoorDash on Wednesday posted better-than-expected sales for its fourth quarter thanks to its growing active-user base and an expansion of its delivery options.

The San Francisco-based delivery company said its revenue grew 34% to $1.3 billion in the October-December period. That topped Wall Street’s forecast of $1.28 billion, according to analysts polled by FactSet.

DoorDash’s shares jumped 31% in after-market trading Wednesday. Prior to that surge, the stock was down 36% so far in 2022 through the end of Wednesday's regular-session trading.

DoorDash said its active users __ or people who have placed an order in the last month __ grew 22% to a record 25 million. DashPass members __ who pay a $9.99 monthly fee for unlimited free deliveries __ grew to 10 million during the quarter, up from 9 million at the end of the third quarter.

Non-restaurant orders also grew as DoorDash added new partners like PetSmart and Ulta Beauty to its offerings. DoorDash said 14% of its active users ordered from a non-restaurant partner in December.

It said its total orders grew 35% to 369 million, also ahead of analysts’ expectations.

The company narrowed its loss to $155 million for the quarter, from $312 million in the same period a year ago. The latest quarter's loss, of 45 cents per share, was higher than the 23-cent loss Wall Street had forecast.

DoorDash said it expects gross order volumes of $11.4 billion to $11.8 billion in the first quarter of this year, up from $11.2 billion in the fourth quarter.

The company said it may update that forecast when it completes its plan to buy Wolt Enterprises, a Finnish delivery service. DoorDash announced in November that it planned to buy Wolt for $8.1 billion; the deal is expected to close in the first half of this year.

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Author: AP News

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Originally published by Associated Press Valuethemarkets.com, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

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