DoorDash Inc. reported continued growth in the second quarter on Thursday, saying its food delivery business remained healthy despite economic uncertainty, but its loss was worse than Wall Street expected.
which completed its acquisition of Finland’s Wolt in the second quarter, beat revenue and other expectations with its earnings report, although the delivery platform company posted a bigger-than-expected loss.
Ravi Inukonda, vice president of finance, said in an interview with MarketWatch on Thursday that it’s “a very challenging macro environment, but we’ve just had a record quarter in terms of orders.”
Gross order value reached $13.1 billion, beating analysts’ estimates of $12.84 billion. Total orders rose to 426 million, above the 419 million expected by analysts.
Inukonda said he was confident the company was well positioned to weather what he saw as slowing consumer spending in the third quarter and the rest of the year, as DoorDash offered delivery from a range of categories including prepared meals, convenience products and more. . Additionally, he expressed satisfaction with Wolt’s 50% year-on-year growth, which he said is faster than its peers in the European region.
DoorDash shares jumped more than 13% after hours, after rising more than 2% in the regular session to close at $81.29, near a three-month high.
The company posted a loss of $263 million, or 72 cents per share, compared with a loss of $102 million, or 30 cents per share, a year ago. DoorDash attributed $45 million of this loss to Wolt. Revenue reached $1.6 billion from $1.24 billion in the prior year quarter.
Analysts polled by FactSet had expected a loss of $195 million, or 21 cents per share, on revenue of $1.52 billion. DoorDash does not provide adjusted earnings per share figures, but some analysts estimate earnings on an adjusted basis.
Adjusted EBITDA was $103 million, down from $113 million in the same quarter last year, but above analysts’ expectations of $58 million. For DoorDash, Ebitda, or Earnings Before Interest, Taxes, Depreciation, and Amortization, excludes other items such as legal fees related to ongoing worker classification issues, tax collection costs, and costs related to intellectual property regulations.
For the third quarter, DoorDash expects adjusted Ebitda of $25-75 million and gross market order value of $13-13.5 billion. Analysts on average had forecast adjusted Ebitda of $51 million and gross order value of $13.19 billion, as well as a loss of 22 cents per share on revenue of $1.58 billion. .
For the second time this year, DoorDash raised its full-year forecast for gross order volume to a range of $51 billion to $53 billion. At the high end, that beat analysts’ expectations of $52.37 billion.
DoorDash shares have fallen more than 45% so far this year, while the S&P 500 SPX index,
decreased by about 13% over the same period.