Shares of DoorDash soared 18 percent in Thursday’s after-hours trading after the company posted its second-quarter earnings results. Although DoorDash reported more loss per share than had been anticipated, its revenue beat analysts’ expectations.
For the second quarter, DoorDash reported a loss per share of 72 cents compared to the estimate of 41 cents that analysts had expected, according to Refinitiv. Revenue for the quarter came in at $1.61 billion compared to the forecast of $1.52 billion that analysts had forecasted, according to Refinitiv.
The total number of orders grew 23 percent year-over-year to 426 million, the company said. This growth is an all-time high for the company. Revenue was up 30 percent year-over-year. The company said this was driven by order frequency and more monthly active users.
For the second half of the year, DoorDash expects a “softer consumer spending environment.” The company also warned its investors that consumer spending could reduce faster than expected and this would take a toll on its results.
DoorDash expects adjusted EBITDA for the third quarter to come in the range of $25 million and $75 million. Analysts, on the other hand, expect adjusted EBITDA to come in at $51.2 million, according to StreetAccount.
The company also mentioned that it wasn’t oblivious to the macroeconomic realities such as high levels of inflation and other uncertainties, taking a toll on consumers. It, however, added that it had not observed a change in its US customer engagement. “Although we have noticed several external indications of shifts in consumer discretionary spending, so far we have not seen changes to consumer engagement on our U.S. Marketplace that are measurable or distinguishable from normal seasonal patterns,” the company said.
In the second quarter, the company completed its acquisition of international food delivery platform Wolt. Wolt accounted for 12 million of the company’s total orders. It also spent more than $40 million providing extra gas savings and mileage-based bonus payments to its drivers in order to reduce the impact of high gas prices.