Shares of online food delivery company DoorDash were up 10 percent in Thursday’s extended trading after reporting its first-quarter earnings results. The company reported revenue growth of 35 percent indicating that its business is still holding up even after the pandemic-induced growth that it experienced had begun t slow down.
The stock was however down 10 percent in regular session trading on Thursday but it was generally a bad day for markets.
In the quarter, the company reported a loss per share of $0.48 compared to the $0.41 loss per share that analysts had expected. Revenue surpassed analysts’ expectations of $1.38 billion. The company reported $1.46 billion in the quarter.
The company said its orders went up in the quarter by 23 percent to 404 million adding that it added the most customers in the quarter since the first quarter of 2021 and that was during pandemic highs.
The online delivery service, however, reported lower revenue growth than it did in the year-ago period.
EBITDA which the company says excludes certain costs such as its legal fights over worker classification and taxes was up to $54 million from $43 million in the same quarter last year. For the second quarter, DoorDash says that it expects between $0 and $100 million for EBITDA.
DoorDash is taking over the food delivery market in the US, it said in a letter sent to its investors. The company plans to move into newer delivery categories such as the delivery of groceries, alcohol, and even retail delivery.
In the first quarter, the company said it provided incentives to delivery workers and did some promotions to attract them too. Compared to the first quarter of last year, the company paid did fewer promotions and incentives.
Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behaviour or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
