DoorDash revenue batters as food delivery boom continues, shares soar 24%

(Reuters) – DoorDash Inc reported quarterly revenue above estimates on Wednesday as demand for food delivery showed no signs of slowing, indicating that ordering habits have changed permanently, sending the company’s shares up 24 % after the bell.

Analysts said people have become accustomed to having food delivered to their doorsteps after ordering frequently during the peak of the pandemic. They expect DoorDash and rivals Uber Eats and Grubhub to show strong growth for several years, even as people venture out more.

Shares of Uber rose 1%, while U.S.-listed shares of Grubhub’s parent company, Just Eat NV, gained 2%.

“It’s entirely possible to eat in a restaurant and have it delivered because we eat three or more times maybe a day, and that’s over 100 shopping moments a month,” CEO Tony Xu said. during a conference call.

In the fourth quarter ended Dec. 31, higher-than-expected consumer retention and new customer growth helped DoorDash’s revenue jump 34% to $1.30 billion and beat estimates of $1.28 billion billion, according to IBES data from Refinitiv.

“To the extent that pent-up demand for on-site dining would eat away at revenue, this would only serve to temporarily dampen some growth, not reverse it for long periods of time,” said Guru Hariharan, CEO of the platform. CommerceIQ e-commerce management.

San Francisco-based DoorDash also forecast first-quarter gross market order value, total value of all app orders, and subscription fees between $11.4 billion and $11.8 billion. dollars, compared to $11.2 billion in the reported quarter.

Even in the face of inflation, consumers’ continued willingness to pay for delivery convenience should support demand, said Matthew Goodman, an analyst at M Science.

DoorDash also doubled its non-restaurant offerings, including groceries, pet food and alcohol to attract more users. It has partnered with a number of retailers including Ulta Beauty, Bed Bath & Beyond and PetSmart.

DoorDash also forecasts core earnings in a breakeven range of $500 million for fiscal 2022, versus estimates of $455.1 million.

Reporting by Praveen Paramasivam in Bengaluru; Editing by Shounak Dasgupta