Shares of DoorDash (NYSE: DASH) are up roughly 12 percent after the meal delivery business published Q2 results that topped forecasts.
DoorDash reported a Q2 loss per share of 72c, compared to a loss per share of 30c in the year-ago period. Revenue came in at $1.61 billion, up 30 percent YoY and above the predicted $1.52 billion. Market place gross order value exceeded $13.08 billion in the quarter, up 25 percent YoY and beyond the expert projections of $12.72 billion.
For Q3, DoorDash forecasts adjusted EBITDA in the range of $25 billion to $75 billion, whereas analysts were aiming for $52.5 million. Marketplace gross order value is projected to be in the region of $13 billion to $13.5 billion, above the projections of $12.98 billion.
For the whole fiscal year, DASH forecasts adjusted EBITDA in the region of $200 million to $500 million, substantially above the consensus estimates of $237.4 million. The company estimates FY marketplace gross order value of $51 billion to $53 billion, compared to analyst expectations of $51.97 billion.
A Citi analyst upped the price estimate to $129 from $119 as the data demonstrated “resilient” demand.
“We emerge from 2Q22 earnings marginally favourable on shares of DoorDash… “We realise the potential dangers a slowing economy could have on demand, but we believe DASH’s self-funding mechanism can retain profitability if needed, and we reiterate our Buy rating,” he wrote in a note.
A JMP analyst said the results were “strong” and prove that DASH is “the most innovative firm within the delivery industry.”
“We believe the firm has numerous levers to sustain growth as it expands into non-restaurant verticals, grows geographically, and offers restaurants new services. “Nearer term, in our view, with consumers now clearly accustomed to delivery as order consistency continues across income brackets despite inflationary pressures, we come away from the quarter feeling better about revenue and profitability visibility as we continue to view the risk/reward favourably in shares,” he told clients in a note.
