Back to top

Image: Bigstock

DoorDash (DASH) Reports Q2 Loss, Beats Revenue Estimates

Read MoreHide Full Article

DoorDash (DASH - Free Report) reported a second-quarter 2023 GAAP loss of 44 cents per share, narrower than the year-ago quarter’s loss of 72 cents per share. However, the figure lagged the Zacks Consensus Estimate by 4.76%.

Revenues increased 32.6% year over year to $2.13 billion and surpassed the consensus mark by 4.2%.

The company’s shares have gained 76.1% year to date, outperforming the Zacks Computer & Technology sector’s increase of 42.8%.

Quarter in Details

In the second quarter of 2023, total orders increased 25% year over year to 532 million. Marketplace GOV increased 26% year over year to $16.47 billion.

In the reported quarter, the adjusted cost of revenues rose 29.2% year over year to $1.08 billion.

DoorDash, Inc. Price, Consensus and EPS Surprise

DoorDash, Inc. Price, Consensus and EPS Surprise

DoorDash, Inc. price-consensus-eps-surprise-chart | DoorDash, Inc. Quote

Adjusted gross margin was 49.2% compared with the 47.8% reported in the year-ago quarter. The contribution margin was 29.1% compared with 23.7% in the year-ago quarter.

In the quarter under review, adjusted sales & marketing expenses increased 10.6% year over year to $429 million.

In the second quarter, adjusted research & development expenses surged 22.6% year over year to $130 million.

Adjusted general & administrative expenses increased 22.7% from the year-ago quarter to $211 million.

Adjusted EBITDA was $279 million compared with the year-ago quarter’s $103 million.

Balance Sheet and Cash Flow

As of Jun 30, 2023, DoorDash had $3.46 billion in cash and cash equivalents compared with $3.41 billion as of Mar 31, 2023.

Cash flow from operations was $393 million in the second quarter compared with the first-quarter 2023 cash flow of $397 million.

Free cash outflow in the second quarter was $311 million, lower than the first quarter’s figure of $316 million.

Guidance

For the third quarter of 2023, DoorDash anticipates Marketplace GOV in the range of $15.8-$16.2 billion. Adjusted EBITDA is expected to be $220-$270 million.

For 2023, the company anticipates Marketplace GOV in the range of $64.2-$65.2 billion. Adjusted EBITDA is expected to be within $750-$1.05 billion.

Zacks Rank & Other Stocks to Consider

DoorDash currently has a Zacks Rank #2 (Buy).

BILL Holdings (BILL - Free Report) , CACI International (CACI - Free Report) and Cisco Systems (CSCO - Free Report) are some other top-ranked stocks that investors can consider in the broader sector, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BILL Holdings shares have gained 7.8% year to date. BILL is set to report its fourth-quarter fiscal 2023 results on Aug 17.

CACI International shares have gained 18% year to date. CACI is set to report its fourth-quarter fiscal 2023 results on Aug 9.

Cisco Systems shares have returned 10.4% year to date. CSCO is set to report its fourth-quarter fiscal 2023 results on Aug 16.

Published in