Shares of online food delivery company DoorDash were up 10 percent in Thursday’s extended trading after reporting its first-quarter earnings results. The company reported revenue growth of 35 percent indicating that its business is still holding up even after the pandemic-induced growth that it experienced had begun t slow down.
The stock was however down 10 percent in regular session trading on Thursday but it was generally a bad day for markets.
In the quarter, the company reported a loss per share of $0.48 compared to the $0.41 loss per share that analysts had expected. Revenue surpassed analysts’ expectations of $1.38 billion. The company reported $1.46 billion in the quarter.
The company said its orders went up in the quarter by 23 percent to 404 million adding that it added the most customers in the quarter since the first quarter of 2021 and that was during pandemic highs.
The online delivery service, however, reported lower revenue growth than it did in the year-ago period.
EBITDA which the company says excludes certain costs such as its legal fights over worker classification and taxes was up to $54 million from $43 million in the same quarter last year. For the second quarter, DoorDash says that it expects between $0 and $100 million for EBITDA.
DoorDash is taking over the food delivery market in the US, it said in a letter sent to its investors. The company plans to move into newer delivery categories such as the delivery of groceries, alcohol, and even retail delivery.
In the first quarter, the company said it provided incentives to delivery workers and did some promotions to attract them too. Compared to the first quarter of last year, the company paid did fewer promotions and incentives.