Despite record total orders and gross order volume, DoorDash Inc. (NYSE: DASH) posted a wider-than-expected net loss in the fiscal second quarter. On Friday, the company’s stock opened around 4% lower, but ultimately recovered the whole intraday loss.
Financial performance in the second quarter
In DoorDash’s quarterly report released on Thursday, the company reported annualised growth of 70% in gross order volume, 69 percent in total orders, and 83 percent in revenue. The online meal ordering company said in a letter to shareholders that it “anticipates a seasonal fall in new consumer acquisition and order rates in Q3.”
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It did, however, improve its full-year revenue forecast. On the results call, management blamed the quarterly loss on allowing employees to sell their shares when DoorDash went public on the New York Stock Exchange in December of last year.
Highlights from CNBC’s “TechCheck” discussion with CEO Xu
Instacart and DoorDash were reportedly in negotiations about merging recently. While it didn’t work out, CEO Tony Xu pointed out that in the most recent quarter, non-restaurant orders climbed faster than restaurant orders. On CNBC’s “TechCheck,” he elaborated on the company’s supermarket drive, saying:
“In terms of internet penetration, grocery is at an earlier inflexion point since no one has found out the correct strategy for it. As a result, DoorDash is launching with a mid-week use case – things you use frequently, such as milk, bread, and cereal. So far, it’s been quite warmly received by partners such as Albertsons and others.”
Walmart, Albertsons, and PetSmart have recently joined with DoorDash to offer on-demand, same-day delivery via their own digital channels, using DoorDash’s operations. According to CEO Xu, these agreements have been “major growth drivers for DoorDash.”
DoorDash has a 56 percent market share in the United States, making it the country’s largest food delivery firm.