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DoorDash (DASH - Free Report) reported a GAAP loss of 39 cents per share in fourth-quarter 2023, narrower than the year-ago quarter’s loss of $1.65 per share.
However, the figure missed the Zacks Consensus Estimate by 160%.
Revenues increased 27% year over year to $2.303 billion and surpassed the consensus mark by 2.62%. The upside was driven by strong performance in total orders and Marketplace GOV, alongside enhanced logistics efficiency and an increasing contribution from advertising.
The company’s shares have increased 18.6% year to date compared with the Zacks Computer & Technology sector’s increase of 9.2%.
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DoorDash (DASH) Reports Q4 Loss, Beats Revenue Estimates
DoorDash (DASH - Free Report) reported a GAAP loss of 39 cents per share in fourth-quarter 2023, narrower than the year-ago quarter’s loss of $1.65 per share.
However, the figure missed the Zacks Consensus Estimate by 160%.
Revenues increased 27% year over year to $2.303 billion and surpassed the consensus mark by 2.62%. The upside was driven by strong performance in total orders and Marketplace GOV, alongside enhanced logistics efficiency and an increasing contribution from advertising.
The company’s shares have increased 18.6% year to date compared with the Zacks Computer & Technology sector’s increase of 9.2%.
DoorDash, Inc. Price, Consensus and EPS Surprise
DoorDash, Inc. price-consensus-eps-surprise-chart | DoorDash, Inc. Quote
Quarter in Details
In the fourth quarter of 2023, total orders increased 23% year over year to 574 million.
Marketplace GOV increased 22% year over year to $17.6 billion.
Adjusted gross margin was 48.5% compared with 46.4% reported in the year-ago quarter.
The contribution margin was 29.9% compared with 24.6% in the year-ago quarter.
In the quarter under review, adjusted sales & marketing expenses increased 8.1% year over year to $428 million.
In the fourth quarter, adjusted research & development expenses moved up 0.8% year over year to $132 million.
Adjusted general & administrative expenses declined 2.5% from the year-ago quarter’s levels to $194 million.
Adjusted EBITDA was $363 million compared with the year-ago quarter’s adjusted EBITDA of $117 million.
Balance Sheet and Cash Flow
As of Dec 31, 2023, DoorDash had $4.07 billion in cash and cash equivalents compared with $3.82 billion as of Sep 30, 2023.
Cash flow from operations was $485 million in the fourth quarter compared with the third-quarter 2023 cash flow of $398 million.
Free cash flow in the fourth quarter was $398 million, higher than the third quarter’s figure of $324 million.
Guidance
For the first quarter of 2024, DoorDash anticipates Marketplace GOV in the range of $18.5-$18.9 billion.
Adjusted EBITDA is expected to be $320-$380 million.
Zacks Rank & Stocks to Consider
DoorDash currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Dell Technologies (DELL - Free Report) , Inseego (INSG - Free Report) and HP (HPQ - Free Report) each carrying a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dell Technologies shares have increased 8.1% in the year-to-date period. DELL is set to report its fourth-quarter fiscal 2024 results on Feb 27.
Inseego’s shares have increased 64.2% in the year-to-date period. INSG is set to report its fourth-quarter 2023 results on Feb 21.
HP’s shares have increased 7.6% in the year-to-date period. HPQ is set to report its first-quarter fiscal 2024 results on Feb 28.