DoorDash Reports Loss, Sending Shares Down By Connor Smith
Updated Aug. 12, 2021 6:50 pm ET / Original Aug. 12, 2021 6:43 pm ET
DoorDash stock was falling in extended trading Thursday after the food-delivery company reported a wider-than-expected net loss and said it expects a decline in new-customer acquisition in the third quarter.
DoorDash (ticker: DASH) reported a net loss of $102 million in the second quarter, wider than the loss of $74.6 million analysts had been expecting, according to FactSet. Adjusted earnings before interest, taxes, depreciation, and amortization of $113 million were up 43% year-over-year. Analysts had expected $63.2 million.
Revenue of $1.2 billion was up 83% year-over-year and ahead of consensus estimates of $1.1 billion. Marketplace gross order value jumped 70% to $10.5 billion. The company noted that such figures came despite relaxing Covid-19 restrictions in many U.S. locations where DoorDash operates. Relaxing restrictions meant many Americans had more options to dine out instead of ordering food delivery from DoorDash.
DoorDash stock was down 3.7% to $181.25 in after-hours trading. The stock is up more than 27% in 2021 and 78% from the $102 price of its December initial public offering
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The company said it expects marketplace gross order value of between $9.3 billion and $9.8 billion in the third quarter, a dip from the second quarter. For the full year, it anticipates the figure to be between $39 billion and $40.5 billion. Its outlook for adjusted Ebitda ranges from zero and $100 million for the third quarter, and between $150 million and $350 million for the full year.
DoorDash said its guidance factors in, among other factors, a seasonal decline in new customer acquisition and order rates in the third quarter. DoorDash also expects to spend more toward investments in new categories, international markets, and platform services in the third and fourth quarter.
“While we observed encouraging trends in the first half of 2021, we caution investors that significant uncertainty remains and consumer behavior could deviate from the expectations included in our guidance,” the company said.