DoorDash (DASH) Reports Q3 Loss, Beats Revenue Estimates
DoorDash DASH reported a GAAP loss of 19 cents per share in third-quarter 2023, narrower than the year-ago quarter’s loss of 77 cents per share. However, the figure beat the Zacks Consensus Estimate by 57.78%.
Revenues increased 27.2% year over year to $2.16 billion and surpassed the consensus mark by 3.52%. The impressive growth was driven by strong performance in total orders and Marketplace GOV, alongside enhanced logistics efficiency and an increasing contribution from advertising.
The company’s shares have surged 55.5% year to date compared with the Zacks Computer & Technology sector’s increase of 30.3%.
Quarter in Details
In the third quarter of 2023, total orders increased 24% year over year to 543 million. Marketplace GOV increased 24% year over year to $16.8 billion.
DoorDash, Inc. Price, Consensus and EPS Surprise
DoorDash, Inc. price-consensus-eps-surprise-chart | DoorDash, Inc. Quote
Adjusted gross margin was 48.7% compared with the 47.4% reported in the year-ago quarter. The contribution margin was 29.6% compared with 24.7% in the year-ago quarter.
In the quarter under review, adjusted sales & marketing expenses increased 7% year over year to $413 million.
In the third quarter, adjusted research & development expenses surged 3.3% year over year to $126 million.
Adjusted general & administrative expenses decreased 19.4% from the year-ago quarter to $170 million.
Adjusted EBITDA was $344 million compared with the year-ago quarter’s adjusted EBITDA of $87 million.
Balance Sheet and Cash Flow
As of Sep 30, 2023, DoorDash had $3.82 billion in cash and cash equivalents compared with $3.46 billion as of Jun 30.
Cash flow from operations was $398 million in the third quarter compared with the second-quarter 2023 cash flow of $393 million.
Free cash outflow in the third quarter was $324 million, higher than the second quarter’s figure of $311 million.
Guidance
For the fourth quarter of 2023, DoorDash anticipates Marketplace GOV in the range of $17-$17.4 billion. Adjusted EBITDA is expected to be $320-$380 million.
Zacks Rank & Other Stocks to Consider
DoorDash has a Zacks Rank #2 (Buy).
Ballard Power System BLDP, NetEase NTES and Upstart UPST are some other top-ranked stocks that investors can consider in the broader sector. While BLDP and NTES sport a Zacks Rank #1 (Strong Buy), UPST carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ballard Power System shares have declined 31.1% year to date. BLDP is set to report its third-quarter 2023 results on Nov 7.
NetEase shares have gained 49.2% year to date. NTES is set to report its third-quarter 2023 results on Nov 16.
Upstart shares have returned 86% year to date. UPST is set to report its third-quarter 2023 results on Nov 7.
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