DoorDash hits new record for orders, revenue in second quarter
DoorDash set new records for total orders and revenue in the second quarter as its grocery and convenience deliveries accelerated and it improved driver efficiency.
The San Francisco-based delivery company said its total orders rose 25% to 532 million for the April-June period. That was ahead of Wall Street's forecast of 521 million, according to analysts polled by FactSet.
Revenue rose 33% to $2.1 billion, which was in line with analysts' forecasts.
DoorDash raised its full-year forecast Wednesday. The company said it now expects gross order values between $64.2 billion and $65.2 billion for the year, up from the $63 billion to $64.5 billion previously forecast. DoorDash expects adjusted pretax earnings between $750 million and $1.05 billion, up from a range of $600 million-$900 million.
DoorDash's shares rose 5% in after-hours trading.
DoorDash Chief Financial Officer Ravi Inukonda said the company is continuing to see growth in users and those customers are ordering more frequently. The 10-year-old company still delivers primarily from restaurants, but added grocery delivery in 2020 and convenience store delivery in 2021.
"We have become more of a utilitarian habit," he said. "This is a small treat that still delights people. That's what's driving growth in the business."
Inukonda said innovation __ including making it easier for customers to search for products on the DoorDash app __ is another reason the company continues to gain market share in all the markets in which it operates. And the company said improved logistics are helping driver efficiency.
Still, investing in that growth has been costly, and DoorDash has never made an annual profit.
DoorDash said its marketing costs rose 12% to $471 million for the quarter. It offered summer deals to its DashPass customers and worked to gain share overseas. DoorDash acquired the Finnish delivery service Wolt Enterprises in the second quarter of 2022; its reported results didn't include Wolt's contribution.
DoorDash narrowed its net loss to $172 million in the second quarter, from a loss of $263 million in the same period a year ago. The company lost 44 cents per share, which was higher than the 41 cent per-share loss Wall Street forecast, according to FactSet.
Inukonda said that higher-than-expected loss was due to the cost of absorbing employees from Wolt.