DoorDash sales surged in Q1 even as dining rooms reopen
DoorDash’s sales nearly tripled in the first three months of the year as demand for food delivery remained elevated even as U.S. restaurants reopened their dining rooms
DoorDash on Thursday reported that its sales nearly tripled in the first three months of the year as demand for food delivery remained elevated even as U.S. restaurants reopened their dining rooms.
DoorDash said its revenue surged 198% to $1.1 billion in the January-March period. That was well above Wall Street’s forecast of $994 million, according to analysts polled by FactSet.
But San Francisco-based DoorDash reported a net loss of $110 million because it is still spending heavily to win new customers and expand into other services, like delivery from groceries and convenience stores.
DoorDash narrowed its net loss per share to 34 cents from $2.92 in the same period a year ago. That was short of Wall Street’s forecast of an 8-cent loss per share in the latest period.
DoorDash said its total orders grew 219% to 329 million during the quarter, surpassing expectations. The company said government stimulus checks likely contributed to higher order levels.
Stimulus payments also made it harder for DoorDash to attract its freelance drivers, the company said, leading to some service problems during the quarter. DoorDash said it added a record number of new drivers in late March. More than 2 million drivers earned money on deliveries during the first quarter.
DoorDash said it expects to see some softness this summer as the impact of the stimulus payments subsides, markets continue to reopen and diners head back to restaurants. The percent of meals eaten in restaurants has been steadily rising since April 2020, and reached its highest level since before the pandemic in March, according to NPD Group.
In the meantime, DoorDash is trying to gain new restaurant partners with lower fees. Late last month, DoorDash began offering a new basic plan that charges restaurants 15% per order for delivery, or around half the cost of previous plans.
Uber Eats, DoorDash’s chief rival, also saw continued strong demand in the first quarter. Uber Eats said last week that its sales jumped 166% in the January-March period.
DoorDash’s stock was up 7% in after-market trading following the release of the earnings report. It is down 19% so far this year.
