DoorDash on Thursday reported a broader-than-expected quarterly loss, blaming a short-term shortage of delivery drivers as consumer demand beat its forecast.
But the company raised its forecast, encouraging investors. The stock rose more than 6% in extended trading after hitting a record low on Thursday. DoorDash’s shares went public in December.
Here’s what the company reported compared to what Wall Street expected, according to an analyst survey by Refinitiv:
- Loss per share: 34 cents vs. 26 cents expected
- Revenue: $ 1.08 billion vs. $ 993.3 million expected
The delivery company reported a first-quarter fiscal net loss of $ 110 million, or 34 cents per share, less than the loss of $ 129 million, or $ 2.92 per share, a year earlier. Analysts polled by Refinitiv had expected a loss per share of just 26 cents.
Delivery drivers were in short supply, further reducing margins, but the problem was resolved by the end of the quarter, the company said.
“Stronger-than-expected consumer demand, coupled with extreme weather events and the impact of stimulus controls, resulted in a significant lack of supply from Dashers in the latter part of the first quarter,” wrote company executives. in a letter to investors.
“The stimulus controls created a particularly acute challenge, as we believe they drove a short-term increase in consumer demand and a simultaneous decrease in Dasher hours,” they added.
Net sales increased 198% to $ 1.08 billion, beating expectations of $ 993.3 million. Total orders reached 329 million during the quarter. Price controls imposed by different municipalities on the fees DoorDash can charge restaurants wiped out $ 31 million in potential revenue.
The company has also expanded beyond restaurants to deliver flowers, pet supplies, convenience store products, and groceries. Orders in these new categories grew 40% compared to the previous quarter, although less than a tenth of active users bought from them in the first quarter. Customers who order the new categories return to DoorDash more frequently over a three-month period than those who only order at restaurants.
As states reopen and consumers dine again, DoorDash is experiencing a negative impact on new customer growth, order rates, and average order value. But your most loyal customers, like those who sign up for your DashPass program, have changed their behavior less than newer or infrequent users. The reopening of economies coincides with warmer weather, which generally results in fewer DoorDash orders.
“However, we are encouraged by the consumer behavior we have seen so far and are more optimistic about our outlook for the full year than we were at the beginning of the year,” the executives wrote.
The company raised its 2021 forecast for gross order value to between $ 35 billion and $ 38 billion, up from a previous range of $ 30 billion to $ 33 billion. DoorDash also expanded its forecast range for adjusted earnings before interest, taxes, depreciation and amortization to between $ 0 and $ 300 million. Its previous range was $ 0 to $ 200 million.
