DoorDash to Report Q1 Earnings: What's in Store?

DoorDash DASH is set to release its first-quarter 2024 results on May 1.
The Zacks Consensus Estimate for the top line is currently pegged at $2.45 billion, suggesting a 20.63% increase year over year.
The consensus mark for loss is estimated to be 7 cents per share, unchanged in the past 30 days. DASH reported a loss of 41 cents per share in the year-ago quarter.
The company's earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters while missing the same twice, the average surprise being 20.5%.

DoorDash, Inc. Price and EPS Surprise

DoorDash, Inc. price-eps-surprise | DoorDash, Inc. Quote

Let's see how things have shaped up for this announcement:

Factors to Consider

DoorDash's first quarter 2024 performance is expected to have benefited from strong total orders and Marketplace GOV, alongside enhanced logistics efficiency and an increasing contribution from advertising.
For the first quarter of 2024, DoorDash anticipates Marketplace GOV in the range of $18.5-$18.9 billion. The Zacks Consensus Estimate for first-quarter Marketplace GOV is pegged at $18.80 billion, suggesting 18.18% year-over-year growth.
DoorDash's expanding partner network, namely Eataly, El Super and Fiesta Mart, to broaden the reach of on-demand grocery delivery across multiple regions is expected to have boosted total orders growth in the quarter under review.
In the fourth quarter of 2023, total orders increased 23% year over year to $574 million. The Zacks Consensus Estimate for first-quarter total orders stands at $606 million, suggesting 18.3% year-over-year growth.
DoorDash's growing efforts to expand its grocery offerings, improve user experience and increase DashPass adoption and the retention of customers are expected to have boosted growth in the grocery category in the to-be-reported quarter.
The company's growing investments across new business verticals such as convenience, retail and DashMarts are expected to have been tailwinds for the company.
Increasing monthly active users with strong contributions from domestic and international markets is expected to have aided DASH's top-line growth.
However, DoorDash is facing extensive competition in the largest category of its business, which is a headwind.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That's the exact case here.
DoorDash has an Earnings ESP of +260.98% and a Zacks Rank #2 at present.

Other Stocks to Consider

Here are some other companies worth considering, as our model shows that these, too have the right combination of elements to beat on earnings in their upcoming releases:
Arista Networks ANET has an Earnings ESP of +2.49% and a Zacks Rank #1.
Arista Networks' shares have gained 15% year to date. ANET is set to report its first-quarter 2024 results on May 7.
Docebo DCBO has an Earnings ESP of +8% and a Zacks Rank #1.
Docebo' shares have declined 9.1% year to date. DCBO is set to report its first-quarter 2024 results on May 9.
Amazon.com AMZN has an Earnings ESP of +6.19% and a Zacks Rank #2.
Amazon.com's shares have gained 14.3% year to date. AMZN is set to report its first-quarter 2024 results on Apr 30.

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