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Why Is DoorDash (DASH) Up 13.9% Since Last Earnings Report?
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It has been about a month since the last earnings report for DoorDash, Inc. (DASH - Free Report) . Shares have added about 13.9% 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 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 Q3 Earnings Beat Estimates, Revenues Up Y/Y
DoorDash reported earnings of 38 cents per share in third-quarter 2024 in contrast to the year-ago quarter’s loss of 19 cents. The figure beat the Zacks Consensus Estimate by 80.95%.
Revenues increased 25% year over year to $2.16 billion and surpassed the consensus mark by 1.59%. The upside was driven by strong performance in total orders and Marketplace Gross Order Value (GOV), alongside enhanced logistics efficiency and an increased contribution from advertising.
DASH’s Quarter in Details
In the third quarter, total orders increased 18% year over year to 643 million. The figure beat the Zacks Consensus Estimate by 0.62%.
Marketplace GOV increased 19% year over year to $20 billion. The figure beat the consensus estimate by 1.43%.
The adjusted gross margin was 50.9% compared with 48.7% in the year-ago quarter.
The contribution margin was 34.4% compared with 29.6% in the year-ago quarter.
Adjusted sales & marketing expenses rose 8.2% year over year to $447 million.
Adjusted research & development expenses increased 23.8% year over year to $156 million.
Adjusted general & administrative expenses increased 41.8% from the year-ago quarter’s level to $241 million.
Adjusted EBITDA was $533 million compared with the year-ago quarter’s adjusted EBITDA of $344 million.
DASH’s Balance Sheet and Cash Flow
As of Sept. 30, 2024, DoorDash had $4.96 billion in cash and cash equivalents and short-term marketable securities compared with $4.85 billion as of June 30, 2024.
Cash flow from operations was $531 million in the third quarter compared with the second-quarter cash flow of $530 million.
Free cash flow was $444 million, lower than the second quarter’s figure of $451 million.
DASH Provides Q4 Guidance
For the fourth quarter, DoorDash anticipates Marketplace GOV to be in the range of $20.6-$21 billion.
Adjusted EBITDA is expected to be in the range of $525-$575 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 52.12% due to these changes.
VGM Scores
At this time, DoorDash has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. 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 has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Why Is DoorDash (DASH) Up 13.9% Since Last Earnings Report?
It has been about a month since the last earnings report for DoorDash, Inc. (DASH - Free Report) . Shares have added about 13.9% 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 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 Q3 Earnings Beat Estimates, Revenues Up Y/Y
DoorDash reported earnings of 38 cents per share in third-quarter 2024 in contrast to the year-ago quarter’s loss of 19 cents. The figure beat the Zacks Consensus Estimate by 80.95%.
Revenues increased 25% year over year to $2.16 billion and surpassed the consensus mark by 1.59%. The upside was driven by strong performance in total orders and Marketplace Gross Order Value (GOV), alongside enhanced logistics efficiency and an increased contribution from advertising.
DASH’s Quarter in Details
In the third quarter, total orders increased 18% year over year to 643 million. The figure beat the Zacks Consensus Estimate by 0.62%.
Marketplace GOV increased 19% year over year to $20 billion. The figure beat the consensus estimate by 1.43%.
The adjusted gross margin was 50.9% compared with 48.7% in the year-ago quarter.
The contribution margin was 34.4% compared with 29.6% in the year-ago quarter.
Adjusted sales & marketing expenses rose 8.2% year over year to $447 million.
Adjusted research & development expenses increased 23.8% year over year to $156 million.
Adjusted general & administrative expenses increased 41.8% from the year-ago quarter’s level to $241 million.
Adjusted EBITDA was $533 million compared with the year-ago quarter’s adjusted EBITDA of $344 million.
DASH’s Balance Sheet and Cash Flow
As of Sept. 30, 2024, DoorDash had $4.96 billion in cash and cash equivalents and short-term marketable securities compared with $4.85 billion as of June 30, 2024.
Cash flow from operations was $531 million in the third quarter compared with the second-quarter cash flow of $530 million.
Free cash flow was $444 million, lower than the second quarter’s figure of $451 million.
DASH Provides Q4 Guidance
For the fourth quarter, DoorDash anticipates Marketplace GOV to be in the range of $20.6-$21 billion.
Adjusted EBITDA is expected to be in the range of $525-$575 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 52.12% due to these changes.
VGM Scores
At this time, DoorDash has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. 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 has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.