DoorDash’s sales soar, costs grow, shares rise

FAN Editor

DoorDash sales soared in the first quarter as the company added more customers. That was the good news.

However, it was a costly quarter as the company’s loss widened to $167 million, from $110 million in the same period a year ago, as DoorDash spent more on stock-based compensation and marketing costs.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

DoorDash said it lost 48 cents per share in the quarter, more than double the 21 cent loss Wall Street forecast.

DoorDash app logo is displayed on a mobile phone screen photographed for illustration on a plate and with cutlery. (Photo illustration by Beata Zawrzel/NurPhoto via Getty Images) (Photo illustration by Beata Zawrzel/NurPhoto via Getty Images / Getty Images)

Revenue jumped 35% to $1.46 billion, topping the forecast of $1.38 billion, according to analysts polled by FactSet.

DOORDASH TO BUMP UP ITS FEES ON SLOW MCDONALD’S RESTAURANTS

Total orders grew 23% to 404 million, also topping analysts’ expectations. 

 A DoorDash delivery worker walks his bike along the road in the Mission neighborhood of San Francisco, California.

In all, those measurements boosted shares 8% in after-hours trading.

DOORDASH PAYING BACK DRIVERS TO OFFSET HIGH GAS PRICES

But DoorDash CEO Tony Xu said it turns out that dining out, and ordering delivery are complementary, and Americans are doing a lot of both.

Ticker Security Last Change Change %
DASH DOORDASH INC. 73.15 -8.49 -10.40%

“People are not substituting eating in with eating out,” Xu said.

CLICK HERE TO READ MORE ON FOX BUSINESS

To help with fuel costs, drivers have been offered 10% cash back on their gas purchases through August.

The Associated Press contributed to this report.

Free America Network Articles

Leave a Reply

Next Post

Bitcoin price falls below $37,000 as market risks increase

close video Bitcoin Foundation chairman Brock Pierce discloses if he’s still buying bitcoin during the market sell-off on ‘The Claman Countdown.’ Bitcoin is struggling to stabilize after a day that saw the cryptocurrency fall more than 8% to below $37,000. Bitcoin has traded lower in five of the past seven […]