Shares of DoorDash Inc. rocketed 27.83% on Wednesday’s extended trading after the company reported stronger-than-expected fourth-quarter revenue.
By market cap, the largest American food ordering company gained 26.41 points to $121.30 per share.
Correspondingly, this uptrend added $9.06 billion to the firm’s valuation.
DoorDash’s latest quarterly results revealed revenue of $1.30 billion from October to December. It outpaced the analysts’ consensus of $1.28 billion.
This figure reflected an annual increase of 34.00% from the previous result of $970.00 million.
Its revenue also elevated 69.00% year-over-year to a record $4.89 billion for fiscal 2021. It came in higher than the expected $4.87 billion and the prior result of $2.89 billion.
Subsequently, users continued to spend more on orders during the reported quarter.
In line with this, Q4 gross order value improved 36.00% to $11.20 billion from a year earlier. It surpassed the projected $10.60 billion and the $8.18 billion in 2020.
The metric notched 369.00 million orders, beyond the 361.00 million expected orders and 273.00 million in the past year.
However, the company missed the market forecast in its earnings. It posted an adjusted loss of $0.45 per share, more significant than the anticipated $0.25.
Nevertheless, it released a first-quarter outlook that is above expectations.
DoorDash anticipated its gross order value to be in the range of $11.40 billion to $11.80 billion, marking a midpoint of $11.60 billion.
Its guidance edged higher than the consensus estimate of $11.40 billion.
Furthermore, it forecast its core earnings in a range of break-even to $500.00 million for fiscal 2022. This outlook is above the analysts’ expectation of $455.10 million.
DoorDash Stock in a Competitive Market
At present, the meal delivery market consolidates, flagging a highly competitive industry.
DoorDash has doubled down its non-restaurant offerings to attract more users in the stated case.
Additionally, it has opened partnerships with several retailers, including Ulta Beauty, Bed Bath & Beyond, and PetSmart.
In November, DoorDash revealed its plans to acquire Wolt Enterprises, a European provider of food delivery services. This all-stock deal has a value of $8.10 billion.
The company stock went public in December 2020 at $102.00 a share but slipped below that level at the start of 2022.
Meanwhile, its rival Just Eat Takeaway acquired GrubHub in an agreement valued at $7.30 billion.
Similarly, Uber Technologies, another competitor, bought Postmates for $2.65 billion.
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