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DoorDash reported mixed first-quarter results after the bell on Wednesday as it pours more money into new technology and features. Shares popped 8% following the report.
Here’s how the company did versus LSEG estimates:
- Earnings per share: 42 cents vs. 36 cents expected
- Revenue: $4.04 billion vs. $4.14 billion expected
Revenue rose 33% from $3.03 billion a year ago, while total orders jumped 27% to $933 million, but came up short of the $954 million estimate from analysts.
Net income during the period declined to $184 million, or 42 cents per share, from $193 million, or 44 cents per share, last year.
The food delivery giant is spending big on new features and services as it builds out a single-platform tech stack that integrates its recent global acquisitions. It’s also shelling out billions to expand its global footprint, enhance artificial intelligence capabilities, and maintain a competitive edge against rivals such as Uber Eats.
“We expect these efforts will allow us to invest more efficiently, operate more effectively, and drive higher levels of growth in the communities we serve,” DoorDash said in a press release on Wednesday.
DoorDash’s recent big-ticket purchases include restaurant reservation platform SevenRooms and British delivery company Deliveroo. Last year, DoorDash also launched an autonomous robot as it scales delivery optionality.
Investors previously challenged the company’s aggressive spending initiatives, worrying that new tech investments would take time to pay off. CEO Tony Xu has fiercely defended those initiatives, and Wall Street gave a stamp of approval last quarter.
Amid the recent war in Iran, DoorDash joined a handful of delivery companies that launched relief programs for drivers feeling the pressure from skyrocketing gas prices. DoorDash said it expects over $50 million in gross costs from the program in the second quarter, which it plans to fund “at least partially by adjusting investment in other areas.”
For the current quarter, DoorDash guided for marketplace gross order value, which tracks the total dollar value of orders, between $32.4 billion and $33.4 billion. Analysts forecast $32.43 billion in GOV.
DoorDash also guided for $770 million to $870 million in EBITDA, the midpoint of which came up short of the $830 million expected by analysts.
DoorDash’s GOV rose 37% from a year ago to $31.6 billion and beat a $31.5 billion estimate from analysts. The company’s gross margin came in at 51.9%, ahead of a 51.6% estimate.
