DoorDash posts better-than-expected Q1 sales but shares fall on cost concerns
DoorDash reported higher-than-expected revenue in the first quarter as strong growth in U.S. grocery orders helped make up for slowing restaurant demand
DoorDash reported higher-than-expected revenue in the first quarter as strong growth in U.S. grocery orders helped make up for slowing restaurant demand.
But the company's shares fell more than 15% in after-hours trading Wednesday as investors appeared concerned about rising costs.
DoorDash said its net loss narrowed to $23 million in the first quarter, compared to a loss of $161 million in the same period a year ago. The loss, of 6 cents per share, was higher than the 3-cent loss Wall Street had forecast, according to analysts polled by FactSet.
DoorDash said it increased both marketing expenses and research costs during the quarter. The company, which laid off 1,250 people at the end of 2022, is also hiring again to improve its products, DoorDash Chief Financial Officer Ravi Inukonda said Wednesday during a conference call with investors.
“Our goal is not just to drive strong growth in 2024, but for many years to come,” Inukonda said.
DoorDash also said it expects pretax earnings between $325 million and $425 million in the second quarter. The midpoint of that range — $375 million — is less than the $394 million that analysts are forecasting. Inukonda said he expects pretax earnings to improve in the second half of this year.
The San Francisco-based delivery company said Wednesday its revenue rose 23% to $2.51 billion in the January-March period. That was higher than the $2.45 billion Wall Street was expecting, according to analysts polled by FactSet.
DoorDash said its total orders climbed 21% to 620 million. That also surpassed expectations; analysts were
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