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DoorDash (DASH - Free Report) reported a fourth-quarter 2022 GAAP loss of $1.65 per share, wider than the year-ago quarter’s loss of 45 cents per share.
The Zacks Consensus Estimate was pegged at a loss of 70 cents.
Revenues increased 40% year over year to $1.82 billion and surpassed the consensus mark by 2.91%.
Quarter in Details
In the fourth quarter of 2022, total orders increased 27% year over year to $467 million, driven by growth in consumers and consumer engagement at DoorDash as well as the acquisition of Wolt.
Marketplace GOV increased 29% year over year to $14.45 billion, driven primarily by organic growth in total Orders as well as the addition of Wolt.
In the reported quarter, adjusted cost of revenues soared 58.8% year over year to $975 million, driven by growth in total orders and increased insurance reserves and costs associated with its first-party distribution business.
Adjusted gross margin was 41.9% compared with 49% reported in the year-ago quarter.
In the quarter under review, adjusted sales & marketing expenses inched up 0.3% year over year to $396 million.
In the fourth quarter, adjusted research & development surged 72.4% year over year to $131 million, driven by growth in headcount and the addition of Wolt.
Adjusted general & administrative increased 18.5% from the year-ago quarter to $199 million.
Adjusted EBITDA was $117 million compared with the year-ago quarter’s $47 million.
Balance Sheet and Cash Flow
As of Dec 31, 2022, DoorDash had $3.52 billion in cash and cash equivalents compared with $2.32 billion as of Sep 30, 2022.
Cash flow from operations was $23 million in the fourth quarter compared with the third-quarter 2022 cash flow of $199 million.
Free cash outflow in the fourth quarter was $73 million.
Guidance
For the first quarter of 2023, DoorDash anticipates Marketplace GOV in the range of $15.1-$15.5 billion. Adjusted EBITDA is expected to be $120-$170 million.
For 2023, DoorDash anticipates Marketplace GOV in the range of $60-$63 billion. Adjusted EBITDA is expected to be $500 million to $800 million.
Zacks Rank & Stocks to Consider
DoorDash currently has a Zacks Rank #3 (Hold).
DoorDash shares have declined 36.3% in the past year, underperforming the Zacks Computer & Technology sector’s decline of 14.3%.
Image: Bigstock
DoorDash (DASH) Reports Q4 Loss, Beats Revenue Estimates
DoorDash (DASH - Free Report) reported a fourth-quarter 2022 GAAP loss of $1.65 per share, wider than the year-ago quarter’s loss of 45 cents per share.
The Zacks Consensus Estimate was pegged at a loss of 70 cents.
Revenues increased 40% year over year to $1.82 billion and surpassed the consensus mark by 2.91%.
Quarter in Details
In the fourth quarter of 2022, total orders increased 27% year over year to $467 million, driven by growth in consumers and consumer engagement at DoorDash as well as the acquisition of Wolt.
Marketplace GOV increased 29% year over year to $14.45 billion, driven primarily by organic growth in total Orders as well as the addition of Wolt.
DoorDash, Inc. Price, Consensus and EPS Surprise
DoorDash, Inc. price-consensus-eps-surprise-chart | DoorDash, Inc. Quote
In the reported quarter, adjusted cost of revenues soared 58.8% year over year to $975 million, driven by growth in total orders and increased insurance reserves and costs associated with its first-party distribution business.
Adjusted gross margin was 41.9% compared with 49% reported in the year-ago quarter.
In the quarter under review, adjusted sales & marketing expenses inched up 0.3% year over year to $396 million.
In the fourth quarter, adjusted research & development surged 72.4% year over year to $131 million, driven by growth in headcount and the addition of Wolt.
Adjusted general & administrative increased 18.5% from the year-ago quarter to $199 million.
Adjusted EBITDA was $117 million compared with the year-ago quarter’s $47 million.
Balance Sheet and Cash Flow
As of Dec 31, 2022, DoorDash had $3.52 billion in cash and cash equivalents compared with $2.32 billion as of Sep 30, 2022.
Cash flow from operations was $23 million in the fourth quarter compared with the third-quarter 2022 cash flow of $199 million.
Free cash outflow in the fourth quarter was $73 million.
Guidance
For the first quarter of 2023, DoorDash anticipates Marketplace GOV in the range of $15.1-$15.5 billion. Adjusted EBITDA is expected to be $120-$170 million.
For 2023, DoorDash anticipates Marketplace GOV in the range of $60-$63 billion. Adjusted EBITDA is expected to be $500 million to $800 million.
Zacks Rank & Stocks to Consider
DoorDash currently has a Zacks Rank #3 (Hold).
DoorDash shares have declined 36.3% in the past year, underperforming the Zacks Computer & Technology sector’s decline of 14.3%.
Baidu (BIDU - Free Report) , Everbridge (EVBG - Free Report) , and Frontier (FYBR - Free Report) are some better-ranked stocks that investors can consider in the broader sector. Baidu sports a Zacks Rank #1 (Strong Buy) while both Everbridge and Frontier carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Baidu shares have declined 10.5% in the past year. BIDU is set to report its fourth-quarter 2022 results on Feb 22.
Everbridge shares have declined 26.9% in the past year. EVBG is set to report its fourth-quarter 2022 results on Feb 22.
Frontier shares have gained 6.1% in the past year. FYBR is set to report its fourth-quarter 2022 results on Feb 24.