By Granth Vanaik
(Reuters) – DoorDash Inc projected full-year core earnings above market estimates on Thursday after rounding out 2022 with stronger-than-expected revenue growth as people bought more food on its app, undeterred by high inflation.
The company’s shares rose about 6% in extended trading.
As fears of a recession grow in the United States, cost-conscious consumers have stuck with their pandemic habit of ordering affordable meals at home rather than dining at restaurants, boosting revenues for companies like DoorDash and UberEats parent Uber Technologies Inc.
DoorDash continues to see consumers order more frequently, a company spokesperson told Reuters, adding that in 2022 it saw more consumers use the platform than ever.
Total orders rose 27% to 467 million in the fourth quarter from the prior year.
The top U.S. food delivery company expects gross order value – the total value of all app orders and subscription fees – to be between $60 billion to $63 billion for 2023, compared with $53.4 billion it reported in 2022.
The San Francisco-based firm’s revenue jumped 40% to $1.82 billion in the quarter ended Dec. 31. Analysts had expected about $1.77 billion, according to IBES data from Refinitiv.
DoorDash expects full-year adjusted EBITDA, a measure of profitability, between $500 million and $800 million, compared with analysts’ expectation of $591.8 million.
However, excluding items, the company posted a quarterly loss per share of 87 cents, while analysts were expecting a loss of 68 cents per share.
The company named Ravi Inukonda as its new chief financial officer, effective March 1. Current finance chief Prabir Adarkar will take over as chief operating officer from Christopher Payne, who is retiring.
(Reporting by Granth Vanaik in Bengaluru; Editing by Shailesh Kuber)
