Earnings Results: DoorDash sales beat expectations, helped by non-restaurant expansion, and shares rally

by | Aug 2, 2023 | Stock Market

Delivery app DoorDash Inc. on Wednesday reported a slightly bigger second-quarter loss than expected but sales that beat estimates, and the company said it would keep investing in new businesses. DoorDash
reported a net loss of $172 million, or 44 cents a share, compared with $263 million, or 72 cents a share, in the same quarter last year. Revenue nearly doubled to $2.13 billion, compared with $1.61 billion in the prior-year quarter. Total orders jumped 25% to 532 million.

Analysts polled by FactSet expected DoorDash to lose 41 cents a share, on $2.06 billion in sales. A DoorDash representative attributed the sales gains to investments in the business, like efforts to refine searches for items. And she also told MarketWatch that efforts to expand outside of DoorDash’s main restaurant business — into areas like grocery and retail — helped drive the sales increase. Shares jumped 4.6% after hours on Wednesday. DoorDash reported earnings as competition in the food-delivery industry remains intense and rife with customer discounts. Despite a boom in demand during the pandemic, the industry has consolidated and struggled to turn a profit, and some executives over the years have said that building customer loyalty to one app over another has …

Article Attribution | Read More at Article Source

Share This