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DoorDash (DASH) Reports Q1 Loss, Beats Revenue Estimates

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DoorDash (DASH - Free Report) reported a first-quarter 2023 GAAP loss of 41 cents per share, narrower than the year-ago quarter’s loss of 48 cents per share.

The Zacks Consensus Estimate was pegged at a loss of 56 cents.

Revenues increased 39.8% year over year to $2.04 billion and surpassed the consensus mark by 6%.

Quarter in Details

In the first quarter of 2023, total orders increased 27% year over year to 512 million. Marketplace GOV increased 29% year over year to $15.91 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

In the reported quarter, the adjusted cost of revenues rose 39.6% year over year to $1.04 billion.

The adjusted gross margin was 45.3% compared with the 45.5% reported in the year-ago quarter.

In the quarter under review, adjusted sales and marketing expenses increased 18% year over year to $466 million.

In the first quarter, adjusted research and development expenses soared 46.6% year over year to $129 million.

Adjusted general and administrative increased 18.5% from the year-ago quarter to $199 million.

Adjusted EBITDA was $204 million compared with the year-ago quarter’s $54 million.

Balance Sheet and Cash Flow

As of Mar 31, 2023, DoorDash had $3.41 billion in cash and cash equivalents compared with $3.52 billion as of Dec 31, 2022.

Cash flow from operations was $397 million in the first quarter compared with the fourth-quarter 2022 cash flow of $23 million.

The free cash outflow in the first quarter was $316 million, higher than the fourth quarter’s $73 million.

Guidance

For the second quarter of 2023, DoorDash anticipates Marketplace GOV of $15.9-$16.2 billion. Adjusted EBITDA is expected to be $180-$230 million.

For 2023, the company anticipates Marketplace GOV of $63-$64.5 billion. Adjusted EBITDA is expected to be $600-$900 million.

Zacks Rank & Stocks to Consider

DoorDash currently has a Zacks Rank #3 (Hold).

The company’s shares have gained 28.7% year to date, outperforming the Zacks Computer & Technology sector’s growth of 17.9%.

Blink Charging (BLNK - Free Report) , Enfusion (ENFN - Free Report) and DigitalOcean (DOCN - Free Report) are some better-ranked stocks that investors can consider in the Zacks Computer & Technology sector. Enfusion sports a Zacks Rank #1 (Strong Buy), and Blink and DigitalOcean carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Blink Charging shares have declined 27.9% year to date. BLNK is set to report its first-quarter 2023 results on May 9.

Enfusion shares have gained 24% year to date. ENFN is set to report its first-quarter 2023 results on May 9.

DigitalOcean shares have gained 23% year to date. DOCN is set to report its first-quarter 2023 results on May 9.

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