DoorDash (DASH - Free Report) reported a GAAP loss of 19 cents per share in third-quarter 2023, narrower than the year-ago quarter’s loss of 77 cents per share. However, the figure beat the Zacks Consensus Estimate by 57.78%.
Revenues increased 27.2% year over year to $2.16 billion and surpassed the consensus mark by 3.52%. The impressive growth was driven by strong performance in total orders and Marketplace GOV, alongside enhanced logistics efficiency and an increasing contribution from advertising.
The company’s shares have surged 55.5% year to date compared with the Zacks Computer & Technology sector’s increase of 30.3%.
Quarter in Details
In the third quarter of 2023, total orders increased 24% year over year to 543 million. Marketplace GOV increased 24% year over year to $16.8 billion.
Adjusted gross margin was 48.7% compared with the 47.4% reported in the year-ago quarter. The contribution margin was 29.6% compared with 24.7% in the year-ago quarter.
In the quarter under review, adjusted sales & marketing expenses increased 7% year over year to $413 million.
In the third quarter, adjusted research & development expenses surged 3.3% year over year to $126 million.
Adjusted general & administrative expenses decreased 19.4% from the year-ago quarter to $170 million.
Adjusted EBITDA was $344 million compared with the year-ago quarter’s adjusted EBITDA of $87 million.
Balance Sheet and Cash Flow
As of Sep 30, 2023, DoorDash had $3.82 billion in cash and cash equivalents compared with $3.46 billion as of Jun 30.
Cash flow from operations was $398 million in the third quarter compared with the second-quarter 2023 cash flow of $393 million.
Free cash outflow in the third quarter was $324 million, higher than the second quarter’s figure of $311 million.
Guidance
For the fourth quarter of 2023, DoorDash anticipates Marketplace GOV in the range of $17-$17.4 billion. Adjusted EBITDA is expected to be $320-$380 million.
Zacks Rank & Other Stocks to Consider
DoorDash has a Zacks Rank #2 (Buy).
Ballard Power System (BLDP - Free Report) , NetEase (NTES - Free Report) and Upstart (UPST - Free Report) are some other top-ranked stocks that investors can consider in the broader sector. While BLDP and NTES sport a Zacks Rank #1 (Strong Buy), UPST carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ballard Power System shares have declined 31.1% year to date. BLDP is set to report its third-quarter 2023 results on Nov 7.
NetEase shares have gained 49.2% year to date. NTES is set to report its third-quarter 2023 results on Nov 16.
Upstart shares have returned 86% year to date. UPST is set to report its third-quarter 2023 results on Nov 7.
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DoorDash (DASH - Free Report) reported a GAAP loss of 19 cents per share in third-quarter 2023, narrower than the year-ago quarter’s loss of 77 cents per share. However, the figure beat the Zacks Consensus Estimate by 57.78%.
Revenues increased 27.2% year over year to $2.16 billion and surpassed the consensus mark by 3.52%. The impressive growth was driven by strong performance in total orders and Marketplace GOV, alongside enhanced logistics efficiency and an increasing contribution from advertising.
The company’s shares have surged 55.5% year to date compared with the Zacks Computer & Technology sector’s increase of 30.3%.
Quarter in Details
In the third quarter of 2023, total orders increased 24% year over year to 543 million. Marketplace GOV increased 24% year over year to $16.8 billion.
Adjusted gross margin was 48.7% compared with the 47.4% reported in the year-ago quarter. The contribution margin was 29.6% compared with 24.7% in the year-ago quarter.
In the quarter under review, adjusted sales & marketing expenses increased 7% year over year to $413 million.
In the third quarter, adjusted research & development expenses surged 3.3% year over year to $126 million.
Adjusted general & administrative expenses decreased 19.4% from the year-ago quarter to $170 million.
Adjusted EBITDA was $344 million compared with the year-ago quarter’s adjusted EBITDA of $87 million.
Balance Sheet and Cash Flow
As of Sep 30, 2023, DoorDash had $3.82 billion in cash and cash equivalents compared with $3.46 billion as of Jun 30.
Cash flow from operations was $398 million in the third quarter compared with the second-quarter 2023 cash flow of $393 million.
Free cash outflow in the third quarter was $324 million, higher than the second quarter’s figure of $311 million.
Guidance
For the fourth quarter of 2023, DoorDash anticipates Marketplace GOV in the range of $17-$17.4 billion. Adjusted EBITDA is expected to be $320-$380 million.
Zacks Rank & Other Stocks to Consider
DoorDash has a Zacks Rank #2 (Buy).
Ballard Power System (BLDP - Free Report) , NetEase (NTES - Free Report) and Upstart (UPST - Free Report) are some other top-ranked stocks that investors can consider in the broader sector. While BLDP and NTES sport a Zacks Rank #1 (Strong Buy), UPST carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ballard Power System shares have declined 31.1% year to date. BLDP is set to report its third-quarter 2023 results on Nov 7.
NetEase shares have gained 49.2% year to date. NTES is set to report its third-quarter 2023 results on Nov 16.
Upstart shares have returned 86% year to date. UPST is set to report its third-quarter 2023 results on Nov 7.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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