DoorDash stock bumps up by 18% after reporting a record number of orders.
DoorDash beat Wall Street’s revenue expectations but showed a greater loss per share than anticipated….
Loss Per Share: 72 cents vs. 41 cents expected by analysts.
Revenue: $1.61 billion vs. $1.52 billion expected by analysts.
As a side, DoorDash acquired the international food delivery platform Wolt during the quarter.
Wolt contributed 12 million of DoorDash’s total orders.
📈 DoorDash said the total number of orders delivered grew 23% year-over-year to $426 million, an all-time high.
Revenue grew 30% year over year, which the company attributed to increased order frequency and more monthly active users.
The food delivery platform expects a “softer consumer spending environment” in the 2nd half of 2022.
⚠️ DoorDash cautioned investors that consumer spending could deteriorate faster than anticipated, which could drive results below its expectations.
The company said it expects adjusted earnings before interest, taxes, depreciation, and amortization to fall between $25 million and $75 million in the 3rd quarter.
The wide range meets analysts’ expectations of $51.2 million.
DoorDash said it is aware that challenging macroeconomic conditions exist for consumers as they grapple with uncertainty and high levels of inflation but that it has not seen changes in its U.S. customer engagement.
“Although we have noticed several external indications of shifts in consumer discretionary spending, so far we have not seen changes to consumer engagement on our U.S. Marketplace that are measurable or distinguishable from normal seasonal patterns,” said DoorDash.
High Gas Prices are Problematic for DoorDash
To offset the impact of high gas prices, DoorDash spent over $40 million providing extra gas savings and mileage-based bonus payments to drivers in the 2nd quarter.
The company has extended its gas savings program through August.