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DoorDash co-founder Tony Xu: We just busted this post-pandemic myth

·Anchor, Editor-at-Large
·2 min read
In this article:
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DoorDash co-founder and CEO Tony Xu thinks it's time to put to bed the myth that food delivery services can't thrive as people exit their homes from the pandemic and grab a bite to eat.

"What have we learned kind of during the pre-COVID — kind of post COVID, behavior, it's just the resilience of the category and how I think we've put to rest, I think this question of what happens to demand as diners go back and you didn't cite restaurants," Xu told analysts on a Wednesday evening earnings call. "Well, I think clearly takeout and delivery, as shown by our performance not just in the fourth quarter but also in 2021 just — and an aggregate is that, they are complementary. It's very possible to eat inside of a restaurant and get delivery."

Xu's upbeat commentary — which comes as DoorDash shares had plunged 55% into Wednesday's earnings report amid post-pandemic growth concerns — arrives after another solid quarter.

The company saw record orders in the fourth quarter, or an increase from 35% from a year ago. Monthly active users of 25 million were also a record, and increased 22%.

The company also posted its fifth straight quarter of adjusted operating profits

Here is how DoorDash performed compared to Wall Street estimates:

  • Net Sales: $1.30 billion vs. $1.29 billion

  • Orders: 369 million vs. 360.3 million

  • Diluted Loss Per Share: $0.45 vs. $0.25

DoorDash shares exploded nearly 30% to $117.90 in pre-market trading on Thursday and was up 17% in early trading. The company's ticker page was the most visited on the Yahoo Finance platform early Thursday morning.

"Because we eat three times or more maybe per day and that's over 100 shopping moments per month, and then you start adding these other categories and you just ask yourself the question, well, they are complementary too inside shopping malls or other types of stores and maybe get it delivered online or over the Internet, and I think that's kind of what we've seen certainly in the restaurant delivery business, and we're starting to see that in all of our other categories," added Xu.

Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.

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