DoorDash stock slips on Q4 results
DoorDash (DASH) reported fourth-quarter revenue of $2.30 billion topping estimates of $2.24 billion. Adjusted EBITDA of $363 million was better than the expected $356.2 million. The first quarter and full-year outlooks were about in line with expectations.
Yahoo Finance's Julie Hyman and Josh Lipton break down the report.
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Editor's note: This article was written by Stephanie Mikulich
Video Transcript
- Shares of DoorDash, they've been bouncing around actually after the company reported its fourth quarter numbers here. And that's because you kind of-- there's a lot of numbers to sift through, first of all. So let's get to them.
The fourth quarter adjusted EBITDA coming in at $363 million. That's ahead of the $356.2 million average analyst estimate. Revenue coming in a little bit ahead of estimates as well, $2.3 billion, 2.24 billion is what analysts had been estimating.
There are some forecasts here, too, coming from the company. First quarter adjusted EBITDA 320 to $380 million. $360 million is what analysts had been predicting.
And for the full-year, DoorDash says gross order value will be $74 billion to $78 billion. Analysts looking for $76.5 billion. So, overall, it looks like the numbers pretty much coming in line with a slightly better than estimates.
You see the shares again kind of bouncing around at one point, I saw them up. And then they were down a little more than 1%. Now they're down more than 4%.
- Yeah, they've been sort of all over the place. At least initially here in the after hours. We'll see where things settle out.
I mean, there were folks on the street who cover this named, Julie, who were expecting good news in part because they were looking at the competition. And what Uber had to say. And they thought maybe Uber and its business was kind of a ride through for DoorDash.
But we also talked about, I'll be very interested in how they talk about the consumer because we've been looking for those clues about where the consumer is at. DoorDash, it's color and commentary will be really interesting on that front, too.
- Yeah, in the release here, DoorDash is emphasizing that they have been investing what they say is aggressively in the company to improve our offerings and launch new products and features that expanded our potential in local commerce. So they're talking-- they're sort of emphasizing that. And they say, this year, that will not change here that they are going to continue to invest in those kinds of measures.
So that's an interesting comment here in a time when we have seen a pullback for many companies in those types of investments. So we're going to look for more details on that.
- Yeah, I'm just looking at the statements in the release, Julie. And they're kind of echoing that statement, the company talked about investing aggressively throughout the year to improve offerings. They talk about new products launch, new features to expand potential and local commerce. Talk about--
Let's see. We are proud that our innovation investment helped generate nearly 50 billion sales for local merchants. Over $15 billion in earnings from more than 7 million Dashers in 2023. Also, remember, we were talking this week too with a Lyft CEO.
Lyft and Uber. Some of these companies, too. Some of their contract workers expressing some concerns about pay and treatment. So we'll see if that comes up on the call as well.
- Yeah, one would think that it would. And one final thing to mention here, when I mentioned that gross order value forecast, the midpoint of it for the full-year $76 million, the average analyst estimate, $76.5 billion. Maybe that's the area of disappointment here. That's sending those shares lower.
