Feb 11 (Reuters) - DoorDash ( DASH ) topped analysts'
estimate for quarterly revenue and total orders on Tuesday, as
customers turned to its online platform to buy everything from
food and groceries to alcohol during the holiday season.
Americans have increasingly grown fond of the convenience of
ordering food online and shopping on smartphones and tablets for
even the smallest items, buoying the bottom line for delivery
platforms such as DoorDash ( DASH ) and Instacart.
DoorDash ( DASH ) posted a profit of $141 million compared with a
loss of $154 million a year ago. The company said it would buy
back shares worth up to $5 billion during fiscal 2025, a boost
from the $1.1 billion it announced for 2024.
The company's fourth-quarter revenue rose 25% to $2.87
billion. That compares with analysts' average estimate of $2.84
billion, according to data compiled by LSEG.
Total orders rose 19% to 685 million, compared with the
estimate of 673.04 million.
DoorDash ( DASH ), however, expects its first-quarter adjusted
earnings before tax, interest, depreciation and amortization to
be between $550 million and $600 million, with its midpoint
below analysts' expectation of $584.9 million.
The company said its outlook anticipates significant levels
of ongoing investment in new category expansion, such as in
beauty and convenience, and international markets.
Its efforts to advertise more to attract customers have led
to an 18% surge in sales and marketing expenses to $541 million
during the fourth quarter.
The company has also partnered with major retailers such as
Wegmans, Lowe's, Ulta Beauty and Walmart Canada to offer
varieties of products, which could aid orders on its platform.
DoorDash ( DASH ) expects its first-quarter gross order value - a key
industry metric that shows total value of all app orders and
subscription fees - to be between $22.6 billion and $23 billion,
compared with the estimate of $22.42 billion.