DoorDash stock tumbled late Wednesday after the food delivery company reported first-quarter results with a wider loss than analysts expected, despite better-than-expected sales.
DoorDash said that it lost 6 cents per share on sales of $2.51 billion, up 23% year over year, for the March-ending quarter. On average, analysts projected the San Francisco-based company would post a loss of 3 cents per share on sales of $2.45 billion, according to FactSet.
For the same period a year earlier, DoorDash lost 41 cents per share on sales of $2.04 billion.
For the current quarter, the delivery firm guided for gross order value on its marketplace of $19.2 billion, at the midpoint of its range. That was in line with what analysts were projecting from DoorDash heading into the report, according to FactSet.
But the company expects adjusted EBITDA — earnings before interest, taxes, depreciation and amortization — of $325 million to $425 million for the current quarter. The midpoint of that range is below the $394 million analysts projected, according to FactSet.
On the stock market today, DoorDash stock is down 14.5% at 109 in recent after-hours action.
DoorDash Orders Up 21%
DoorDash said that its orders increased 21% year over year to 620 million total during the first quarter. Those purchases added to the marketplace gross order value of $19.2 billion for DoorDash, also up 21% year over year.
However, the company's growth rate for both total orders and marketplace order value continues to decelerate. Order volume grew 23% year over year in DoorDash's December quarter, while order value increased 22%.
DoorDash's total loss of $25 million is its smallest as a public company. In the first quarter of 2023, DoorDash lost $162 million.
The delivery firm's adjusted EBITDA — a metric closely watched by investors — improved 82% year over year to $371 million. That was slightly ahead of expectations of $368 million, according to FactSet.
In its news release, the company said its first quarter performance "set new quarterly records for total orders, marketplace GOV, and revenue, while improving our net loss compared to a year ago."
DoorDash Stock: Technical Ratings
Prior to earnings, DoorDash stock fell 1.4% in Wednesday trading. Shares have gained 28% this year and 108% in the past 12 months. The S&P 500 index has gained 20%, meanwhile, over the past 12 months.
Coming into the report, DoorDash stock had an IBD Composite Rating of 86 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.
Further, DoorDash's IBD Relative Strength Rating was 96 out of 99.
