DoorDash posts $263M loss, but stock jumps nearly 20%

DoorDash saw total orders rise and revenue increase, but the delivery company posted a larger-than-expected loss for the second quarter. DoorDash said it lost $263 million, or 72 cents per share, in Q2, compared with a loss of $102 million, or 30 cents per share, a year ago.

FactSet analysts had forecast a loss of $195 million, or 21 cents per share, on revenue of $1.52 billion. DoorDash posted revenue of $1.6 billion, up from $1.24 billion in Q2 2021.

DoorDash (NYSE: DASH) released earnings after the market closed on Thursday. It said $45 million of the quarterly loss was due to its acquisition of Finland-based Wolt, which the U.S. company purchased for $8.1 billion.

Despite the quarterly loss, investors boosted the stock almost 20% to $96.35 per share immediately after the earnings release in after-hours trading Thursday.

Revenue grew 30% year over year to $1.6 billion, and total orders increased 23% year over year to 426 million. Marketplace gross order volume (GOV) was up 25% to $13.1 billion. Marketplace GOV was up 22% year over year excluding the results of Wolt.

Adjusted earnings before interest, tax, depreciation and amortization was $103 million (excluding Wolt), below 2021 Q2’s $113 million. It surpassed analysts’ expectations of $58 million, though. Wolt contributed a negative $25 million to EBIDTA.

The company said adjusted EBITDA was the highest it has been in DoorDash’s history.

DoorDash expects Q3 EBITDA of between $25 million and $75 million and marketplace gross order value of $13 billion to $13.5 billion. It raised its full-year guidance for gross order volume to a range of $51 billion to $53 billion.

Grocery push

DoorDash is making a push into the grocery space, announcing a deal on Monday with Associated Wholesale Grocers (AWG) to provide on-demand grocery delivery services to independent food retailers. Customers at participating stores can order their groceries through the DoorDash app.

AWG has over 1,000 member companies with more than 3,400 locations in 31 states.

DoorDash also recently inked deals with Schnuck Markets, which operates 112 stores in four Midwestern states, and with Food City for delivery from 117 of its 138 stores. In February, it launched an express grocery delivery service with Albertsons Cos. (NYSE: ACI). That program enables delivery of more than 6,000 items such as produce, dairy, eggs, snacks, frozen foods and packaged goods in under 30 minutes at participating Albertsons Cos. locations. These include Safeway, Vons, ACME Markets, Jewel-Osco and Tom Thumb in more than 20 cities.

Still, it maintains a low penetration rate in the market.

“Based on third-party data, we estimate our business currently addresses global markets with more than 300 million households and 750 million people, total restaurant spend of over $1 trillion, and total grocery and convenience spend of over $2.5 trillion,” it said in a shareholder letter accompanying the earnings. “Based on those estimates, we believe the Wolt and DoorDash Marketplaces currently represent just 5% of restaurant spend in these markets and well under 1% of convenience, grocery, and non-food spend.”

The company said it believes it has a “large opportunity for growth” in the space.

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