Food delivery company DoorDash saw its shares surge more than 14 percent in extended trading on Thursday after the company reported third-quarter sales and total orders that were better than what analysts had expected.
The company reported a loss per share of 77 cents for the third quarter. Analysts, according to Refinitiv, had expected a loss of 60 cents. Revenue for the third quarter came in at $1.7 billion, beating the $1.63 billion that analysts had estimated, according to Refinitiv.
The company said that the total number of orders it fulfilled during the third quarter was 439 million, up 27 percent. DoorDash’s total orders surpassed analysts’ estimate of 433 million, according to StreetAccount.
The company, however, saw its net loss increase to $295 million, or a loss of 77 cents per share, in the third quarter. In the year-ago period, the company reported a net loss of $101 million, or a loss of 30 cents per share.
The number of orders fulfilled by DoorDash is in contrast with the slowdown in food deliveries as consumers have been strategic with their spending as a result of historic levels of inflation that has been affecting them. A handful of restaurant chains have reported weaker sales and/or declining traffic in recent times, and this suggests that consumers may not be eating out as much in a bid to save money and reduce their spending.
The company said that it expects consumer spending to remain strong throughout the rest of the year. It added that it expects gross order value to come in between $13.9 billion and $14.2 billion in the fourth quarter. This surpasses the estimate of $13.73 billion by analysts, according to StreetAccount. It is also an increase from the third quarter when gross order value jumped 30 percent year over year to $13.5 billion. Gross order value measures how much users are spending on orders and subscription fees. DoorDash also expects adjusted EBITDA for the fourth quarter to come in between $85 million and $120 million.
Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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