Earnings

DoorDash stock pops after revenue beat, rosy guidance

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A DoorDash sign is pictured on a restaurant on the day they hold their IPO in New York, December 9, 2020.
Carlo Allegri | Reuters

Shares of DoorDash jumped as much as 6% in extended trading Thursday after the food delivery company reported better-than-expected sales for the fourth quarter and gave upbeat guidance for the current period.

Here’s how the company did:

  • Loss per share: $1.65 per share vs. 68 cents, as expected by analysts, according to Refinitiv
  • Revenue: $1.82 billion vs. $1.77 billion, as expected by analysts, according to Refinitiv

The company also said it approved a buyback of up to $750 million of its shares.

DoorDash attributed the wider-than-expected loss for the fourth quarter to charges related to its acquisition of Finnish food delivery company Wolt, and stock-based compensation expenses related to the layoffs last November, which resulted in 1,250 jobs being cut.

DoorDash said the total number of orders it delivered in the fourth quarter grew 27% to 467 million, which topped Wall Street’s projections for roughly 458 million orders, according to StreetAccount.

For the current quarter, DoorDash said it expects marketplace gross order volume to be between $15.1 billion and $15.5 billion. Analysts surveyed by StreetAccount were looking for $15 billion in marketplace gross order volume.

DoorDash said in the quarterly earnings report that its president and COO Christopher Payne will retire from the company. Payne will be succeeded by DoorDash CFO Prabir Adarkar, who will take over the COO role effective March 1. Ravi Inukonda, DoorDash’s vice president of finance and strategy, will become CFO.

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