DoorDash (NYSE:DASH) shares are up 4% following the company’s reported Q1 earnings, with EPS of ($0.41) coming in better than the consensus estimate of ($0.58).
Revenue grew 40% year-over-year to $2.04 billion, beating the consensus estimate of $1.93B, driven by growth in Marketplace GOV, the addition of Wolt, improved logistics efficiency, and lower credits and refunds as a percentage of Marketplace GOV.
Total Orders grew 27% year-over-year to 512 million in Q1, driven by growth in consumers and consumer engagement and the addition of Wolt.
Marketplace GOV rose 29% year-over-year to $15.9B in Q1, driven primarily by organic growth in Total Orders and the addition of Wolt.
For Q2/23, the company expects marketplace GOV in the range of $15.9B-$16.2B and adjusted EBITDA of $180M-$230M.
For the full year, the company expects marketplace GOV in the range of $63.0B-$64.5B and adjusted EBITDA of $600M-$900M.
Citi analysts said the resilient delivery demand fueled a strong quarter for DASH.
"Given better-than-expected results and guidance on both Marketplace GOV and EBITDA, we would expect shares to trade up," the analysts said in a note.
UBS analysts reiterated a Neutral rating and hiked the price target to $70 per share.
"The high valuation (with 0.9x risk/reward skew at $66 after-market trading price) for now keeps us at a Neutral, esp given similar outperformance from Uber with the incremental benefit of platform effects at lower multiples with better disclosure and forward outlook."
Additional reporting by Senad Karaahmetovic