DoorDash lost money in Q2 but investors are still happy
DoorDash Inc (NYSE: DASH) is up 15% in extended trading on Thursday even though the food delivery company reported a wider-than-expected loss for its fiscal second quarter.
Why is DoorDash stock up after the bell?
Investors are focusing on record orders and strong top-line growth in the face of a tough macro environment. DoorDash expects a slowdown in consumer spending in the balance of its current financial year but says it’s well-positioned to withstand such a softening.
Wall Street has a consensus “overweight” rating on DoorDash stock that’s down roughly 35% versus the start of 2022.
DoorDash Q2 earnings snapshot
Lost $263 million versus the year-ago $102 millionPer-share loss came in at 72 cents, up from 30 centsReceived 426 million orders; beating consensus by 7 millionGross value of orders was $13.1 billion; ahead of estimatesRevenue jumped 29% year-over-year to $1.6 billion
FactSet consensus was 21 cents of per-share loss on $1.52 billion in revenue. DoorDash acquired Wolt in Q2 that resulted in a $45 million hit, as per the earnings press release.
DoorDash’s guidance for the future
Adjusted EBITDA to fall in the range of $25 million to $75 million in Q3Expects $13 billion to $13.5 billion worth of gross orders this quarterAnalysts expected $51 million EBITDA (adj) and $13.19 billion gross order value
DoorDash also raised its full-year outlook for gross orders for the second time in 2022. It now forecasts $51 billion to $53 billion worth of orders this year. In comparison, experts had called for $52.37 billion.
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