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DoorDash projects upbeat Q3 core profit as online ordering stays resilient
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DoorDash projects upbeat Q3 core profit as online ordering stays resilient
Aug 1, 2024 1:35 PM

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Consumer demand, engagement stronger than ever - CFO

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Posts Q2 revenue of $2.63 bln vs. est. of $2.54 bln

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Expects Q3 adjusted EBITDA between $470 mln and $540 mln

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Sees Q3 gross order value between $19.4 bln and $19.8 bln

By Granth Vanaik

Aug 1 (Reuters) - DoorDash ( DASH ) forecast

third-quarter core profit above expectations and surpassed

revenue estimates for the June quarter on Thursday, as more

customers used its online delivery platform to order food and

grocery items.

The company has expanded beyond its restaurant delivery

business in the U.S. into categories such as grocery and alcohol

and has forged new partnerships with retailers to fend off

rivals Uber Eats and Instacart.

DoorDash ( DASH ) expects third-quarter adjusted earnings before tax,

interest, depreciation and amortization (EBITDA) between $470

million and $540 million, compared to expectations of $453.2

million, according LSEG data.

Total orders jumped 19% to 635 million in the second-quarter

from a year earlier. The company, which had disclosed an

interest in a takeover of Britain's Deliveroo ( DROOF ), said

revenue soared 23% to $2.63 billion, compared with expectations

of $2.54 billion.

"Consumer demand on the platform is stronger than it's ever

been," CFO Ravi Inukonda told Reuters in an emailed statement.

The results come as investors worry over the firm's ability

to grow as U.S. restaurant demand slows. Analysts have called

such concerns "overblown".

"We have not seen any decline ... While some restaurants

have said in-store traffic is slowing, digital is growing,"

Inukonda said.

DoorDash ( DASH ) expects gross order value - a key industry metric

that shows total value of all app orders and subscription fees -

to be between $19.4 billion and $19.8 billion in the

third-quarter, compared with $16.75 billion a year earlier.

Net loss attributable to stockholders came in at $157

million, or 38 cents per share, in the quarter, compared to $170

million, or 44 cents, a year earlier.

DoorDash ( DASH ), which has seen higher labor expenses due to new

minimum pay regulation in New York City and Seattle for delivery

workers, said costs had gone down in the second quarter from the

prior three months.

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