DoorDash Reports Strong Q2 Results

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DoorDash (ticker: DASH) has announced its second-quarter results, surpassing expectations and indicating the robustness of the consumer economy. The food delivery service reported revenue of $2.13 billion for the quarter, a 33% increase compared to the previous year. This figure slightly exceeded the consensus forecast of $2.06 billion according to FactSet. Notably, DoorDash experienced a 25% growth in total orders, with 532 million orders placed during the quarter. Although this signifies a slight slowdown from the previous three quarters, where growth averaged 27%, it is still an impressive performance. Marketplace gross order volume also witnessed an increase of 26%, reaching $16.4 billion.

In terms of profitability, DoorDash reported a loss of $172 million under generally accepted accounting principles (GAAP). However, adjusted Ebitda (earnings before interest, taxes, depreciation, and amortization) showed a significant rise from $103 million in the previous year to $279 million in the current quarter.

Looking ahead to the third quarter, DoorDash projects a marketplace gross order value between $15.8 billion and $16.2 billion, beating the consensus estimate of $15.8 billion. Furthermore, the company predicts adjusted Ebitda for the third quarter to be between $220 million and $270 million, exceeding the consensus forecast of $192 million.

DoorDash has also revised its full-year outlook, increasing its marketplace gross order volume projection from $63 billion to $64.5 billion to a new range of $64.2 billion to $65.2 billion. The adjusted Ebitda forecast has also been adjusted upward, with DoorDash now expecting earnings between $750 million and $1.05 billion, compared to the previous guidance of $600 million to $900 million.

Following the release of these impressive results, DoorDash shares rose by 4.7% in after-hours trading, reaching $89.99.

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