After the meal delivery service reported third-quarter sales and total orders that were better than anticipated, shares of DoorDash surged more than 14% in extended trading on Thursday.
Here is how the business fared:
Its net loss did, however, increase to $295 million, or a loss of 77 cents per share. In the same quarter last year, it posted a net loss of $101 million, or a loss of 30 cents per share.
While customers’ wallets are being squeezed by historic levels of inflation, the strong order statistics dispel worries about a slowdown in food deliveries. Some restaurant businesses have recently reported decreased sales or declining visitation, which may indicate that customers are dining in less frequently to cut costs.
According to DoorDash, it expects consumer spending to remain strong for the remainder of the year. According to StreetAccount, it anticipated gross order value for the current quarter to be between $13.9 billion and $14.2 billion, which is higher than the $13.73 billion consensus projection. The gross order value increased by 30% year over year to $13.5 billion in the third quarter, thus there has been a growth since then. The gross order value reflects how much each user spends on subscription fees and orders.
The business stated that it anticipates adjusted EBITDA for the fourth quarter to range between $85 million and $120 million.