DoorDash Defies Expectations with 23% Revenue Surge, After-Hours Stock Soars 10.63%

DoorDash reported its financial results for the second quarter of the 2024 fiscal year, revealing revenue of $2.63 billion, a 23% increase year-over-year. The net loss attributable to common stockholders narrowed to $157 million from $170 million in the same period last year. Similarly, the diluted loss per share was $0.38, down from $0.44 the previous year. The revenue exceeded analyst expectations.

The company’s gross order value (GOV) for its Marketplace app reached $19.71 billion, a 20% increase compared to the same quarter last year. The total number of orders grew 19% year-over-year to 635 million. DoorDash's gross profit also rose, reaching $1.195 billion, up from $951 million a year earlier, representing a GOV proportion of 6.1%, an improvement from the 5.8% recorded last year.

DoorDash's adjusted EBITDA for the second quarter was $430 million, up from $279 million in the same quarter of the prior year. This represented 2.2% of GOV, up from 1.7% year-over-year. Contribution Profit amounted to $825 million, or 4.2% of GOV, compared to $620 million, or 3.8% of GOV, during the same period last year.

The company's total costs and expenses were $2.831 billion, up from $2.344 billion the previous year. Breakdown of notable expenses includes revenue costs of $1.385 billion, sales and marketing costs at $509 million, research and development costs of $303 million, general and administrative costs of $494 million, and depreciation and amortization costs of $140 million.

DoorDash’s operating loss for the quarter was $201 million, down from $211 million a year prior. The interest income for the quarter was $49 million, compared to $34 million in the second quarter of the previous year. Operating cash flow for the first half of the year rose to $530 million from $393 million last year, and free cash flow for the quarter was $451 million, up from $311 million.

As of the end of the second quarter of the 2024 fiscal year, DoorDash held $3.62 billion in cash and cash equivalents and restricted cash, up from $2.133 billion at the end of the second quarter of the 2023 fiscal year.

For the third quarter of the 2024 fiscal year, DoorDash expects its Marketplace app gross order value to be between $19.4 billion and $19.8 billion, with an average estimate of $19.6 billion, exceeding analyst expectations. The company projects an adjusted EBITDA range of $470 million to $540 million. Based on current trends, the company also anticipates stock-based compensation expenses between $1.1 billion and $1.2 billion for the full fiscal year, with RSU issuances estimated between 6 million and 7 million, and depreciation and amortization expenses projected between $560 million and $590 million.

DoorDash also highlighted potential risks to its forecasts, including consumer spending downturns, geo-political instability, and currency rate fluctuations, which could negatively impact the company's performance.

On the day of the announcement, DoorDash's stock dropped by $2.52, closing at $108.20, but surged by $11.50, or 10.63%, in after-hours trading, reaching $119.70. Over the past 52 weeks, the stock has ranged between $69.90 and $143.34.