DoorDash (DASH, Financial) experienced a decline of 12% following its first-quarter earnings report, which revealed a larger-than-expected GAAP loss. Despite this, the company saw a 23.5% increase in revenue, reaching $2.51 billion, and a 21% year-over-year increase in total orders, hitting 620 million. The Q1 Marketplace Gross Order Value (GOV) also rose by 21% year-over-year to $19.2 billion, surpassing the prior guidance of $18.5-$18.9 billion.
Key financial highlights include:
- Adjusted EBITDA grew by 82% year-over-year to $371 million, which is near the upper end of the $320-$380 million guidance range.
- Adjusted EBITDA as a percentage of Marketplace GOV increased to 1.9% from 1.3% in the previous year.
- Q2 adjusted EBITDA is projected to be between $325 million and $425 million.
- Continued investment in new categories and international markets is expected, though this could impact consumer spending.
Operational achievements and future outlook:
- Order frequency and DashPass subscriptions are at record highs.
- Grocery sector orders have doubled year-over-year for three consecutive quarters.
- International business is showing significant growth.
- The advertising business, particularly in grocery and retail, is expanding rapidly.
- Despite general economic concerns, DoorDash reports strong demand in its digital and delivery segments.
Investor concerns seem to focus on the potential for reduced margins due to increased investments and hiring, particularly in engineering. Additionally, there is nervousness around a trend of slowing year-over-year order growth, which has been evident over recent quarters.
