AP

DoorDash sees record orders and users, but losses grow

Feb 16, 2023, 2:44 PM | Updated: 4:31 pm

DoorDash said Thursday that it saw a record number of orders and active users in the fourth quarter as it expanded overseas and gained market share at home.

The San Francisco-based delivery company said its monthly active users grew 28% to a record 34 million during the October-December period. DashPass members __ who pay $9.99 per month for free delivery on most orders __ grew 50% to 15 million.

DoorDash’s gross order value __ or the total of all orders on its platform __ rose 29% to an all-time high of $14.4 billion. That beat Wall Street’s forecast of $14 billion, according to analysts polled by FactSet.

Some of that growth came from Wolt Enterprises, the Finnish delivery service DoorDash acquired last year for $8.1 billion. Wolt operates in 22 countries where DoorDash previously had no presence, including Germany, Sweden, Hungary and Israel.

But Ravi Inukonda, DoorDash’s vice president of finance __ who was named chief financial officer on Thursday __ said DoorDash is also growing in the U.S., where its market share has climbed to near 60%. Excluding Wolt, DoorDash’s gross order value rose 20% to $13.4 billion.

Inukonda said DoorDash has confidence in its outlook this year because the company has grown despite inflation and economic headwinds. DoorDash expects gross order value between $60 billion and $63 billion this year, up from $53.4 billion in 2022.

“Food is relatively inelastic. People need to do that grocery shopping,” he said. “And we have a product and service that people love.”

Total orders grew 27% to 467 million. That beat Wall Street’s forecast of 459 million, according to analysts polled by FactSet. Fourth quarter revenue jumped 40% to $1.82 billion, also ahead of analysts’ forecast of $1.77 billion.

But profits remain elusive for the 10-year-old company. DoorDash said its net loss widened to $640 million, or $1.65 per share, as it expanded into new categories __ like a recently announced partnership with the beauty product store Sephora __ and integrated Wolt into its operations.

Wall Street had expected a loss of 67 cents per share.

DoorDash’s stock-based compensation costs rose and its research and development costs nearly doubled in the fourth quarter. Its net income was also impacted by restructuring charges. The company announced in December that it was laying off 1,250 workers __ or 6% of its workforce __ because it hired too many people when sales surged during the pandemic.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

A woman pauses while shopping at a Kohl's store in Clifton, N.J., Jan. 26, 2024. On Thursday, Feb. ...

Associated Press

Federal Reserve’s preferred inflation gauge picked up last month in sign of still-elevated prices

An inflation gauge favored by the Federal Reserve increased in January, the latest sign that the slowdown in U.S. consumer price increases is occurring unevenly from month to month.

6 hours ago

This undated image provided by Mikel Desmond shows his brother Marcus Tessier, who turned up in Dem...

Associated Press

Missing teen with autism found in New Mexico, about 200 miles away from his Arizona home

A missing teen with autism has been found in New Mexico — about 200 miles away from his home in southern Arizona.

7 hours ago

A newly released report on last year’s fatal crash involving a pickup truck and a group of bicycl...

Associated Press

Report suggests steering of vehicle that caused fatal Goodyear bicycle crash worked fine

A new report on last year’s fatal Goodyear bicycle crash has cast doubts about the driver’s claim the vehicle’s steering locked up.

1 day ago

Israeli Embassy...

Associated Press

US airman dies after setting himself ablaze outside Israeli Embassy in Israel-Hamas war protest

An active-duty member of the U.S. Air Force has died after he set himself ablaze outside the Israeli Embassy in Washington, D.C.

3 days ago

Biden and Trump to visit Mexico border Thursday immigration...

Associated Press

Biden and Trump both plan trips to the Mexico border Thursday, dueling for advantage on immigration

President Joe Biden and former President Donald Trump will make dueling trips to the U.S-Mexico border on Thursday.

3 days ago

Arizona and New York attorneys feud over extraditing suspect...

Associated Press

Why Alvin Bragg and Rachel Mitchell are fighting over extraditing suspect in New York hotel killing

Maricopa County Attorney Rachel Mitchell says she isn't into extraditing a suspect due to her lack of faith in Manhattan’s top prosecutor.

7 days ago

Sponsored Articles

...

DISC Desert Institute for Spine Care

Sciatica pain is treatable but surgery may be required

Sciatica pain is one of the most common ailments a person can face, and if not taken seriously, it could become one of the most harmful.

...

Sanderson Ford

The best ways to honor our heroes on Veterans Day and give back to the community

Veterans Day is fast approaching and there's no better way to support our veterans than to donate to the Military Assistance Mission.

...

Canvas Annuity

Interest rates may have peaked. Should you buy a CD, high-yield savings account, or a fixed annuity?

Interest rates are the highest they’ve been in decades, and it looks like the Fed has paused hikes. This may be the best time to lock in rates for long-term, low-risk financial products like fixed annuities.

DoorDash sees record orders and users, but losses grow