DoorDash posted higher-than-expected fourth-quarter sales on Wednesday thanks to its expanding active user base and new offerings such as deliveries from grocery stores and pet shops.
According to the delivery company based in San Francisco, its revenue increased 34% to $1.3 million during the October-December period. According to FactSet analysts, this exceeded Wall Street’s $1.28 billion forecast.
DoorDash shares rose 27% Wednesday in after-market trades. The stock had been down 36% in 2022 to the end of regular-session trading on Wednesday before this surge.
DoorDash reported that its active users, or those who placed orders in the past month, grew 22% to record 25 million. DashPass members, who pay $9.99 per month for unlimited delivery, saw their number grow to 10,000,000 during the quarter. This is an increase of 9 million from the third quarter.
Prabir Adarkar, DoorDash’s Chief Financial Officer, stated that the omicron variant appears to have had little effect on sales. These sales continue to grow despite falling case volumes.
DoorDash’s addition of new partners such as Albertsons, PetSmart and Ulta Beauty to their offerings led to a rise in non-restaurant orders during the October-December period. DoorDash reported that 14% of its users ordered in December from a non restaurant partner.
Tony Xu, DoorDash CEO and Chairman, said that the company sees significant potential to increase restaurant sales. He said that although DoorDash has gained a share of the delivery market, it still accounts for only 5% of U.S. restaurant sales annually.
Xu stated that “we’re a tiny tiny, tiny, very small fraction of the opportunities in front of us.”
DoorDash reported that its total orders increased by 35% to 369 millions in the fourth quarter. This was also higher than analysts’ expectations.
The quarter’s loss was $155 million, down from $312million a year earlier. Wall Street forecasted a loss of 23 cents per share in the latest quarter. The 45 cents per-share loss was more than what actually happened.
Adarkar stated that the driver shortages which plagued the company in 2021 have subsided and that the company is confident it will be “well supplied with drivers” this year. DoorDash claims that more than 6,000,000 drivers delivered goods to the company in 2021.
DoorDash stated that it anticipates gross orders volumes of $11.4 billion-$11.8 billion for the first quarter, an increase of $11.2 billion from the fourth quarter.
According to the company, it could update this forecast if it completes its plan for Wolt Enterprises (a Finnish delivery company). DoorDash had announced in November its intention to purchase Wolt Enterprises for $8.1 billion. The deal is expected close in the first quarter of 2011.
