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DoorDash (DASH - Free Report) reported second-quarter 2022 loss of 72 cents per share, wider than the Zacks Consensus Estimate of a loss of 39 cents. In the year-ago period, the company reported a loss of 30 cents.
Revenues of $1.6 billion increased 30% on a year-over-year basis and surpassed the consensus mark by 5.47%. Revenues were driven by 28% year-over-year growth in DoorDash revenues and the addition of the Wolt business. DoorDash’s revenues were driven by strong growth in Total orders and Marketplace GOV.
Quarter in Details
In the second quarter of 2022, total orders increased 23% year over year to $426 million, driven by growth in consumers and average order frequency. DoorDash’s contribution to the Total Orders growth was 20%, and the rest was supported by the addition of Wolt.
Marketplace GOV increased 25% year over year to $13.1 billion in the second quarter of 2022, driven primarily by 22% year-over-year growth in DoorDash Marketplace GOV and the rest due to the addition of Wolt.
In the second quarter of 2022, adjusted cost of revenues increased by 57% year over year to $839 million, driven by growth in total orders and increased insurance reserves. Adjusted gross profit increased by 10% year over year to $769 million.
In the quarter under review, adjusted sales & marketing expenses decreased by 500 basis points to $388 million from the year-ago quarter. The decrease in cost was driven by a decline in advertising costs; however, partially offset by growth in headcount and the addition of Wolt.
In the second quarter of 2022, adjusted research & development increased drastically by 112% year over year to $106 million, driven by growth in headcount and the addition of Wolt.
Adjusted general & administrative increased a massive 35% from the year-ago quarter to $172 million.
In the quarter under discussion, adjusted EBITDA decreased 8.8% year over year to $103 million.
Balance Sheet and Cash Flow
As of Jun 30, 2022, DoorDash had $2.73 billion in cash and cash equivalents compared with $2.24 billion as of Mar 31, 2022.
Cash flow from operations was $165 million in the second quarter compared with first-quarter 2022’s outflow of $20 million.
Free cash flow for the second quarter was $86 million compared with the first-quarter 2022’s outflow of $91 million.
Guidance
For the third quarter of 2022, DoorDash anticipates Marketplace GOV in the range of $13 billion to $13.5 billion. Adjusted EBITDA is expected to be $25 million to $75 million in the third quarter of 2022.
For fiscal 2022, DoorDash anticipates Marketplace GOV in the range of $51 billion to $53 billion. Adjusted EBITDA is expected to be $200-$500 million in the third quarter of 2022.
Zacks Rank & Stocks to Consider
DoorDash currently has a Zacks Rank #4 (Sell).
DoorDash’s shares have returned 45.4% against the Zacks Computer and Technologysector’s decline of 22.1% in the year-to-date period.
Here are some better-ranked stocks worth considering in the broader sector.
ASUR’s shares have decreased 30.2% in the year-to-date period compared with the Zacks Internet - Delivery Services industry’s decline of 0.8%. ASUR is scheduled to report second-quarter 2022 results on Aug 8.
BLNK’s shares have fallen 13.7% in the year-to-date period compared with the Zacks Electronics - Miscellaneous Services industry’s decline of 16.1%. Blink is scheduled to report second-quarter 2022 results on Aug 8.
ANGI’s shares have slumped 35.9% in the year-to-date period compared with the Zacks Internet - Content industry’s decline of 30.3%. ANGI is scheduled to report second-quarter 2022 results on Aug 9.
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DoorDash (DASH) Reports Q2 Loss, Beats Revenue Estimates
DoorDash (DASH - Free Report) reported second-quarter 2022 loss of 72 cents per share, wider than the Zacks Consensus Estimate of a loss of 39 cents. In the year-ago period, the company reported a loss of 30 cents.
Revenues of $1.6 billion increased 30% on a year-over-year basis and surpassed the consensus mark by 5.47%. Revenues were driven by 28% year-over-year growth in DoorDash revenues and the addition of the Wolt business. DoorDash’s revenues were driven by strong growth in Total orders and Marketplace GOV.
Quarter in Details
In the second quarter of 2022, total orders increased 23% year over year to $426 million, driven by growth in consumers and average order frequency. DoorDash’s contribution to the Total Orders growth was 20%, and the rest was supported by the addition of Wolt.
Marketplace GOV increased 25% year over year to $13.1 billion in the second quarter of 2022, driven primarily by 22% year-over-year growth in DoorDash Marketplace GOV and the rest due to the addition of Wolt.
In the second quarter of 2022, adjusted cost of revenues increased by 57% year over year to $839 million, driven by growth in total orders and increased insurance reserves. Adjusted gross profit increased by 10% year over year to $769 million.
In the quarter under review, adjusted sales & marketing expenses decreased by 500 basis points to $388 million from the year-ago quarter. The decrease in cost was driven by a decline in advertising costs; however, partially offset by growth in headcount and the addition of Wolt.
In the second quarter of 2022, adjusted research & development increased drastically by 112% year over year to $106 million, driven by growth in headcount and the addition of Wolt.
DoorDash, Inc. Price, Consensus and EPS Surprise
DoorDash, Inc. price-consensus-eps-surprise-chart | DoorDash, Inc. Quote
Adjusted general & administrative increased a massive 35% from the year-ago quarter to $172 million.
In the quarter under discussion, adjusted EBITDA decreased 8.8% year over year to $103 million.
Balance Sheet and Cash Flow
As of Jun 30, 2022, DoorDash had $2.73 billion in cash and cash equivalents compared with $2.24 billion as of Mar 31, 2022.
Cash flow from operations was $165 million in the second quarter compared with first-quarter 2022’s outflow of $20 million.
Free cash flow for the second quarter was $86 million compared with the first-quarter 2022’s outflow of $91 million.
Guidance
For the third quarter of 2022, DoorDash anticipates Marketplace GOV in the range of $13 billion to $13.5 billion. Adjusted EBITDA is expected to be $25 million to $75 million in the third quarter of 2022.
For fiscal 2022, DoorDash anticipates Marketplace GOV in the range of $51 billion to $53 billion. Adjusted EBITDA is expected to be $200-$500 million in the third quarter of 2022.
Zacks Rank & Stocks to Consider
DoorDash currently has a Zacks Rank #4 (Sell).
DoorDash’s shares have returned 45.4% against the Zacks Computer and Technologysector’s decline of 22.1% in the year-to-date period.
Here are some better-ranked stocks worth considering in the broader sector.
Asure Software (ASUR - Free Report) carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ASUR’s shares have decreased 30.2% in the year-to-date period compared with the Zacks Internet - Delivery Services industry’s decline of 0.8%. ASUR is scheduled to report second-quarter 2022 results on Aug 8.
Blink Charging (BLNK - Free Report) carries a Zacks Rank #2.
BLNK’s shares have fallen 13.7% in the year-to-date period compared with the Zacks Electronics - Miscellaneous Services industry’s decline of 16.1%. Blink is scheduled to report second-quarter 2022 results on Aug 8.
Angi (ANGI - Free Report) carries a Zacks Rank #2.
ANGI’s shares have slumped 35.9% in the year-to-date period compared with the Zacks Internet - Content industry’s decline of 30.3%. ANGI is scheduled to report second-quarter 2022 results on Aug 9.