DoorDash reported fourth-quarter results late Thursday that topped revenue estimates but fell well short on earnings. DASH stock jumped as the company announced a stock buyback program and gave an upbeat forecast.
The provider of food-delivery services reported an adjusted loss of $1.65 a share on revenue of $1.8 billion. Analysts expected DoorDash to report an adjusted loss of 67 cents a share on revenue of $1.77 billion. Revenue jumped 40% from the year-ago period.
DASH stock surged 7.6% to 72 during after-hours action on the stock market today.
The company ended the year with 32 million monthly active users, an increase of 7 million from the year-ago period.
DASH Stock: Loss Related To Acquisition
DoorDash attributed the wider-than-expected loss for the fourth quarter to charges related to its acquisition of Wolt, a Finnish food delivery company. That's in addition to stock-based compensation expenses related to company layoffs in November.
What helped the stock is that total orders jumped 27% to 467 million, beating estimates for 458 million. The company also said it approved a buyback of up to $750 million of its shares. Further, the company expects gross order volume to run from $15.1 billion to $15.5 billion, ahead of views for $15 billion.
"While we are pleased with our progress, our consumer experience is still nowhere near where we would like it to be," the company said in a written statement with the news release.
"We lowered our average delivery time by 10%, reduced extreme lateness, increased our site reliability, added selection in all of our categories, and reduced average transaction fees per order by over 8%," DoorDash said.
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