DoorDash Shares Skyrocket After Fourth-Quarter Mixed Earnings
Feb 17, 2022 By MarketDepth
DoorDash (NYSE: DASH) shares skyrocketed as much as 21% Thursday after reporting mixed earnings on Wednesday that showcased an outstanding number of people who had placed orders within the fourth quarter. The company managed to take 369 million orders throughout the quarter, an overall 35% year-over-year increase.
The American food delivery platform reported an earnings loss of USD0.45 per share, compared to the expected USD0.25 a share. Revenue amounted to USD1.3 Billion, higher than analysts anticipated USD1.28 Billion. Furthermore, fourth-quarter gross order value surged to USD11.2 Billion, topping the previously projected amount of USD10.6 Billion.
“Demand on our Marketplace grew substantially in 2021, exceeding our expectations and the expectations of many who questioned the sustainability of demand as restaurants reopened.”the company said in its letter to shareholders
DoorDash, similar to other competitors, has experienced a continuous demand for its food-delivery platform, despite the reopening of restaurants as covid restrictions ease.
“Overall, the underlying demand for DASH’s delivery offerings remains steady even as normalcy is slowly returning in many markets,” Wolfe Research analyst Deepak Mathivanan wrote in a note to clients Thursday. “The company is also making nice progress in scaling several [long term] initiatives.”