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DoorDash adds 11% after 'excellent' results

Published 11/01/2023, 05:06 PM
Updated 11/02/2023, 06:31 AM
© Reuters DoorDash shares surge 7% on Q3 beat
DASH
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(Updated - November 2, 2023 6:28 AM EDT)

DoorDash (NASDAQ:DASH) shares jumped nearly 11% in pre-open Thursday trade following the company’s Q3 results.

Earnings per share of ($0.19) came in better than the consensus estimate of ($0.40). Revenue grew 27% year-over-year to $2.2 billion, beating the consensus estimate of $2.09B.

Total orders grew 24% year-over-year to 543 million and marketplace GOV increased 24% to $16.8B.

Management mentioned that Q3 was their best quarter as a public company for Marketplace GOV, revenue, GAAP net loss including redeemable non-controlling interests, and adjusted EBITDA.

For Q4, the company expects Marketplace GOV to be in the range of $17.0-$17.4B and adjusted EBITDA of $320-$380M.

Analysts at Goldman Sachs reaffirmed a Neutral rating and raised the price target by $5 to $103 per share.

"We view DASH as a leading marketplace across multiple product categories with a rising market share dynamic and a global scale to its operations which should continue to compound profits in the coming years."

Analysts at Barclays said the results were "excellent."

"Against a field that is performing well below DASH's 20%+ growth rates (in some cases slowing), these results are even more impressive," they said.

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