DoorDash stock gained in Wednesday trading, after the food-delivery company reported stronger-than-expected 25% revenue growth and gave an upbeat sales forecast for the current quarter.
DoorDash said late Tuesday that it earned 33 cents per share on sales of $2.87 billion for the December-ended quarter. Analysts polled by FactSet projected the San Francisco-based company would earn 34 cents per share on sales of 2.84 billion.
Meanwhile, DoorDash's marketplace processed 685 million orders, worth $21.3 billion in gross value. Analysts were projecting DoorDash's gross order value would come in around $20.9 billion.
"In 2024, we grew revenue 24% year-over-year, generated our first full year of positive GAAP net income, and helped generate nearly $60 billion in sales for local merchants in over 30 countries and over $18 billion in earnings for Dashers," the company said in a news release.
The strong growth stood out to analysts. Needham analyst Bernie McTernan reiterated a buy call for DoorDash stock following the report and upped his price target to 225, from 180.
"DoorDash completed its third consecutive year of (more than) 20% bookings growth post pandemic, highlighting the company's durable growth," McTernan wrote. "We estimate core U.S. restaurant continues to grow double digits while new verticals in the U.S. now represent (roughly) 25% of gross order value."
On the stock market today, DoorDash stock gained 4% to close at 200.89.
DoorDash Expects Strong Q1 Sales Growth
For the current quarter, DoorDash guided for gross order value of $22.8 billion. Analysts polled by FactSet project DoorDash will guide for gross order value around $22.4 billion. However, DoorDash's guide for adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was slightly below expectations at $575 million, compared to $583 million.
Investors appeared more focused on the gross order value guidance, with DoorDash showing "continued strong momentum into 2025," William Blair analyst Ralph Schackart wrote to clients following the report.
Schackart reiterated an outperform rating for DoorDash stock.
"Given the continued strong growth, scaling margins, and share gains, we believe DoorDash will continue to execute," Schackart wrote.
DoorDash Stock: Up 60% In Past 12 Months
DoorDash stock is up more than 60% over the past 12 months, entering Wednesday. Shares have been helped by steady order growth that analysts say shows the staying power of the "convenience economy." DoorDash also reported its first quarterly profit as a public company late last year.
DoorDash has gained 15% so far this year.
Meanwhile, DoorDash stock has an IBD Composite Rating of 92 out of a best-possible 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
DoorDash's IBD Relative Strength Rating is 92 out of 99. The RS Rating means that DASH stock has outperformed 92% of all stocks in IBD's database over the past year.
