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DoorDash posts better-than-expected Q1 sales but shares fall on cost concerns

Economic Times · 6m

DoorDash reported higher-than-expected revenue in Q1 due to increased U.S. grocery orders offsetting slower restaurant demand. Despite this, the company's shares fell 12% as investors expressed concerns about rising costs. DoorDash's net loss in Q1 narrowed to $23 million, but it was higher than the forecasted loss. The company also increased marketing expenses and research costs. DoorDash expects pretax earnings of $325 million to $425 million in Q2, lower than analysts' forecast. The company's revenue rose by 23% to $2.51 billion, beating expectations. DoorDash's total orders increased by 21% to 620 million, with significant growth in U.S. grocery orders. However, the value of U.S. restaurant orders grew at a slower pace. Additionally, new minimum wage rules in New York and Seattle affected DoorDash's sales, resulting in reduced orders.