It has been about a month since the last earnings report for DoorDash, Inc. (DASH Quick QuoteDASH - Free Report) . Shares have added about 7.1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is DoorDash, Inc. due for a pullback? 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 Q3 Loss, Beats Revenue Estimates

DoorDash 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.

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.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month.

The consensus estimate has shifted 62.92% due to these changes.

VGM Scores

Currently, DoorDash, Inc. has a great Growth Score of A, a grade with the same score on the momentum front. However, 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 B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise DoorDash, Inc. has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

DoorDash, Inc. is part of the Zacks Internet - Services industry. Over the past month, Alphabet (GOOGL Quick QuoteGOOGL - Free Report) , a stock from the same industry, has gained 4%. The company reported its results for the quarter ended September 2023 more than a month ago.

Alphabet reported revenues of $64.05 billion in the last reported quarter, representing a year-over-year change of +11.9%. EPS of $1.55 for the same period compares with $1.06 a year ago.

For the current quarter, Alphabet is expected to post earnings of $1.60 per share, indicating a change of +52.4% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.1% over the last 30 days.

Alphabet has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.