DoorDash, the delivery service that just keeps expanding its reach, has once again broken records with an all-time high number of orders. Founded in 2013 and based in San Francisco, California, DoorDash delivers food from local restaurants to people who use their app to order from their phone or computer. Just one year after launching its services in Chicago, DoorDash has now expanded to include 27 metropolitan areas throughout the country, and was recently valued at $4 billion.
DoorDash reported second-quarter results after the bell Thursday that topped Wall Street’s revenue expectations but showed a greater loss per share than expected.
Shares of DoorDash climbed 18% after hours.
According to Refinitiv, the company lost 72 cents per share, compared to analysts’ expectations of 41 cents.
Breaking it down to key words, this would mean $1.61 billion in revenue vs. analysts’ expectations of $1.52 billion.
In a press release, DoorDash claims to have delivered a total of 426 million orders, which represents a 23% increase over the previous year.
After 30% growth in revenues over the course of a year, the company cited more order frequency and more monthly active users as the contributing factors.
DoorDash announced that it anticipates a weaker spending environment for the second half of the year. It cautioned investors that consumers may stop spending at a faster rate than anticipated, which may cause its profits to fall below expectations.
The company said it expects adjusted EBITDA to fall somewhere between $25 million and $75 million for the third quarter, and its reported $51.2 million.
During these times, DoorDash reports that there are high levels of uncertainty among its customers and they are coping with inflationary problems. They also said that so far they have not seen a decrease in engagement from their US customers.
While we have noticed several external signs of shifts in consumer discretionary spending, we haven’t seen any changes in consumer engagement on our U.S. Marketplace that are measurable or distinguishable from normal seasonal trends,” the company said.
The company has invested over $40 million to offset the impact of high gas prices. The company has announced a continuation of its gas savings program through August.
DoorDash completed its acquisition of international food delivery platform Wolt during the quarter, which accounted for 12 million of DoorDash’s total orders.