After-Hours Alert: Why DoorDash Stock Is Surging

DoorDash Inc DASH shares are trading higher in Thursday's after-hours session after the company reported mixed financial results.

DoorDash said second-quarter revenue jumped 30% year-over-year to $1.61 billion, which beat the estimate of $1.52 billion, according to data from Benzinga Pro.

The online food delivery company reported a net loss of $(263) million, or (72) cents per share, which missed the estimate for a loss of (41) cents per share and was down from a net loss of $(102) million in the prior year's quarter.

DoorDash's total orders grew 23% year-over-year to an all-time high of 426 million.

Marketplace GOV grew 25% year-over-year to $13.1 billion, driven primarily by growth in the number of consumers and in average order frequency, with a small benefit from increased average order values associated with inflation.

The increase in marketplace GOV, along with healthy Dasher supply and leverage on advertising expenses, drove second-quarter adjusted EBITDA to $103 million, which was above the high end of the company's previously issued guidance range.

Looking Ahead: DoorDash said it expects third-quarter marketplace GOV of $13 billion to $13.5 billion. Third-quarter adjusted EBITDA is expected to be between $25 million and $75 million. 

It expects full-year marketplace GOV of $51 billion to $53 billion and sees full-year adjusted EBITDA of $200 million to $500 million. 

"Among other things, our Q3 and 2022 outlook anticipates a softer consumer spending environment in the second half of 2022 than what we experienced in the first half of the year. It also anticipates significant levels of ongoing investment in new verticals and international markets," the company said.

See Also: Doximity Slashes FY23 Outlook After Q1 Beat, Shares Plunge

DASH Price Action: DoorDash has traded between $152.49 and $56.67 over a 52-week period.

The stock was up 13% in after hours at $91.86 at press time.

Photo: ajay_suresh from Flickr.