Forex Trading, News, Systems and More

DoorDash stock pops 30% on revenue beat, strong order numbers

A Doordash delivery person rides their bike on Church Avenue in the Flatbush neighborhood of Brooklyn on December 04, 2020 in New York City. Food delivery startup DoorDash Inc is expected to raise its U.S. initial public offering up to $3.14 billion.
Michael M. Santiago | Getty Images

Shares of DoorDash soared as much as 32% on Wednesday after the company reported better-than-expected revenue in the fourth quarter.

The company also posted strong order numbers and added new users, suggesting that demand for food delivery services remains high.

Here are the key numbers:

  • Loss per share: 45 cents vs 25 cents expected in a Refinitiv survey of analysts
  • Revenue: $1.3 billion vs $1.28 billion expected

DoorDash was one of the biggest beneficiaries of stay-at-home trends during the coronavirus pandemic, as many people relied heavily on food delivery services, instead of eating out at restaurants, to avoid spreading Covid-19. The company capitalized on the heightened demand by expanding beyond restaurants into delivering things like flowers, pet supplies, alcohol and groceries.

Consumers continued to spend more on orders during the quarter. Fourth-quarter gross order value grew 36% year-over-year to $11.2 billion, surpassing analysts’ projected $10.6 billion. It notched 369 million orders, higher than the 361 million orders analysts’ expected.

For the full year, the company projects marketplace gross order value to come in between $48 billion and $50 billion, which is in line with consensus estimates of $49.4 billion, according to analysts surveyed by FactSet.

WATCH: DoorDash beats on revenues, Q4 total orders