DoorDash posted stronger-than-expected results in the first quarter as it expanded into new markets overseas and new delivery categories at home
ByDEE-ANN DURBIN AP Business Writer
Adds background. Adds stock price. Will be updated following conference call scheduled for 5 p.m. EDT. -- DoorDash posted stronger-than-expected results in the first quarter as it expanded into new markets overseas and new delivery categories at home.
The San Francisco company said its total orders rose 27% to 512 million in the January-March period. That was well above the 493 million Wall Street forecast, according to analysts polled by FactSet.
DoorDash shares rose 4.5% in after-market trading.
DoorDash acquired the Finnish delivery service Wolt Enterprises last summer, allowing it to expand in 22 countries where it previously had no presence, including Germany, Sweden, Hungary and Israel.
And in the U.S., the company said orders from convenience stores, groceries and other newer categories are growing faster than its traditional restaurant deliveries. DoorDash, which began delivering groceries in 2020, most recently announced a partnership with Aldi in February.
DoorDash said its revenue jumped 40% to $2 billion for the quarter. That was ahead of the $1.9 billion Wall Street forecast.
But the company continued to struggle with the cost of expansion and integrating with Wolt. DoorDash said its sales and marketing expenses rose 20% in the quarter, while its research and development costs rose 56%.
Late last year, DoorDash cut 1,250 jobs — or 6% of its workforce — in an effort to reduce its operating costs. At the time, the company said it had hired too rapidly to keep up with demand during the pandemic.
DoorDash reported a net loss of $162 million, or 41 cents per share. That was narrower than the 58-cent loss analysts forecast.
