On Thursday, DoorDash released mixed fourth quarter 2022 financial data with strong revenue, beating analysts’ consensus.
Its stock price went down by -1.89% to $66.89 per share on February 16. However, it is expected to increase by 5.41% to $70.51 apiece in the upcoming session.
The earnings per share of DoorDash declined to -$1.65, lower than the analysts’ -$0.67 forecasts. It is worse compared to the previous -$0.77 data.
On the other hand, the company’s revenue jumped to $1.82 billion, surpassing the $1.77 billion estimates. These figures are higher than the former $1.70 billion results.
Also, the San Francisco-based firm said that it would buy back $750.00 million worth of stock. Its Q4 growth is brought by a significant hike in food orders, groceries, and pet care items.
Generally, DoorDash expected the total value of application orders and subscription fees to improve from $60.00 billion to $63.00 billion. Moreover, it looks forward to an adjusted EBITDA that ranges between $500.00 million and $800.00 million.
Meanwhile, their net loss had a $642.00 million growth or $1.65 per share from $155.00 million or $0.45 last year. The decrease was due to costs involved in stock-based compensation and employee layoffs in November.
According to analysts, the entity is earning a market share in the US led by heightened scale in non-restaurant categories.
Delivery Service DoorDash Offers Discounts
Since the pandemic, delivery companies like DoorDash and Uber Eats skyrocketed as people avoided going out for food. However, its growth eased during recent months.
Besides, businesses are struggling with high inflation, compressing consumer spending power. Due to difficulties, these firms have provided deals and discounts to their new clients. These efforts are made to engage more spending and give their customers more reasons to return.
Also, they are attempting to keep restaurants from decreasing delivery prices as they offer them new services.
According to DoorDash, the core US restaurant business was booming. Hence, the company plans on investing in building work overseas and expanding into new categories, such as grocery deliveries.