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DoorDash tops quarterly revenue estimates on strong online orders during holidays
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DoorDash tops quarterly revenue estimates on strong online orders during holidays
Feb 11, 2025 1:32 PM

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.

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