We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is DoorDash, Inc. (DASH) Down 1.6% Since Last Earnings Report?
Read MoreHide Full Article
A month has gone by since the last earnings report for DoorDash, Inc. (DASH - Free Report) . Shares have lost about 1.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is DoorDash, Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
DoorDash Reports Q2 Loss, Beats Revenue Estimates
DoorDash 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%.
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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
Currently, DoorDash, Inc. has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, DoorDash, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
DoorDash, Inc. belongs to the Zacks Internet - Services industry. Another stock from the same industry, Alphabet Inc. (GOOG - Free Report) , has gained 6.7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2023.
Alphabet Inc. reported revenues of $62.07 billion in the last reported quarter, representing a year-over-year change of +8%. EPS of $1.44 for the same period compares with $1.21 a year ago.
Alphabet Inc. is expected to post earnings of $1.45 per share for the current quarter, representing a year-over-year change of +36.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.6%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Alphabet Inc. Also, the stock has a VGM Score of B.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is DoorDash, Inc. (DASH) Down 1.6% Since Last Earnings Report?
A month has gone by since the last earnings report for DoorDash, Inc. (DASH - Free Report) . Shares have lost about 1.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is DoorDash, Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
DoorDash Reports Q2 Loss, Beats Revenue Estimates
DoorDash 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%.
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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
Currently, DoorDash, Inc. has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, DoorDash, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
DoorDash, Inc. belongs to the Zacks Internet - Services industry. Another stock from the same industry, Alphabet Inc. (GOOG - Free Report) , has gained 6.7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2023.
Alphabet Inc. reported revenues of $62.07 billion in the last reported quarter, representing a year-over-year change of +8%. EPS of $1.44 for the same period compares with $1.21 a year ago.
Alphabet Inc. is expected to post earnings of $1.45 per share for the current quarter, representing a year-over-year change of +36.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.6%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Alphabet Inc. Also, the stock has a VGM Score of B.