DoorDash's sales soar, costs grow, shares rise
Shares jumped 8% in after-hours trading
DoorDash sales soared in the first quarter as the company added more customers. That was the good news.
However, it was a costly quarter as the company's loss widened to $167 million, from $110 million in the same period a year ago, as DoorDash spent more on stock-based compensation and marketing costs.
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DoorDash said it lost 48 cents per share in the quarter, more than double the 21 cent loss Wall Street forecast.
DoorDash app logo is displayed on a mobile phone screen photographed for illustration on a plate and with cutlery. (Photo illustration by Beata Zawrzel/NurPhoto via Getty Images) (Photo illustration by Beata Zawrzel/NurPhoto via Getty Images / Getty Images)
Revenue jumped 35% to $1.46 billion, topping the forecast of $1.38 billion, according to analysts polled by FactSet.
DOORDASH TO BUMP UP ITS FEES ON SLOW MCDONALD’S RESTAURANTS
Total orders grew 23% to 404 million, also topping analysts’ expectations.
A DoorDash delivery worker walks his bike along the road in the Mission neighborhood of San Francisco, California.
In all, those measurements boosted shares 8% in after-hours trading.
DOORDASH PAYING BACK DRIVERS TO OFFSET HIGH GAS PRICES
But DoorDash CEO Tony Xu said it turns out that dining out, and ordering delivery are complementary, and Americans are doing a lot of both.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DASH | DOORDASH INC. | 157.24 | +1.58 | +1.02% |
"People are not substituting eating in with eating out," Xu said.
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To help with fuel costs, drivers have been offered 10% cash back on their gas purchases through August.
The Associated Press contributed to this report.