Tony Xu, co-founder and CEO of DoorDash Inc., smiles during the Wall Street Journal Tech Live conference in Laguna Beach, California, USA, on Tuesday, October 22, 2019.
Martina Albertazzi | Bloomberg | Getty Images
DoorDash reported its fourth-quarter 2020 earnings after Thursday’s bell, which surpassed analysts ’revenue estimates, but included a large net loss in its first launch as a public company.
Shares fell more than 12% during trading after hours following the report.
Here are the key numbers:
- Income: $ 970 million, up from $ 938 million expected, according to a survey by Refinitiv analysts
- Loss per share: $ 2.67, unadjusted
CNBC does not compare reported earnings with analysts’ estimates of a company’s first report after it was made public because the uncertain stock count may distort expectations.
The company reported a net GAAP loss of $ 312 million, which it said was primarily due to IPO-related costs and share-based compensation. This is even more than double its GAAP net loss in the fourth quarter of 2019, which reached $ 134 million.
Revenue for the quarter represented year-on-year growth of 226%.
DoorDash’s public debut came as Americans continue to rely on food delivery services as they take precautions to minimize the spread of Covid-19. DoorDash experienced booming demand, with total orders in the fourth quarter, up 233% year-over-year, at 273 million.
But DoorDash told shareholders it expects some of the tailwinds it experienced from home stay orders in the United States to turn around once the country controls the virus.
“We expect markets to start opening up soon. As this happens, we expect declines in consumer participation and average order values, although the exact amount is still unclear,” the company wrote. “In any case, we will continue to focus on reducing friction in our market and executing them against the factors that will drive long-term consumer adoption: selection, experience and value.”
The company warned that the outlook for the year “remains very uncertain”, but provided some guidelines based on its assumption of a “successful deployment of COVID-19 vaccines”.
The company expects adjusted first-quarter EBITDA to range from $ 0 million to $ 45 million and range from $ 0 million to $ 200 million throughout 2021. It expects the gross value of the orders in its market fall between $ 8.6 billion and $ 9.1 billion during the first quarter and between $ 30 billion and $ 33 billion year-round.
DoorDash began trading on the New York Stock Exchange in December, ending its first day of trading at more than 85% with a market capitalization of $ 60.2 billion. Since then, shares have fallen below this valuation, currently standing at around $ 53 billion.
The company disclosed losses of $ 149 million in revenue of $ 1.9 billion through September 2020 in its IPO brochure, showing strong growth and reducing previous year’s losses. In 2019, DoorDash had a net loss of $ 533 million for revenue of $ 587 million over the same nine months.
The pandemic has highlighted concert workers for apps like DoorDash, Lyft and Uber, who rely on a staff of independent contractors. The health crisis renewed the calls of progressives to give protection to concert workers, including health benefits and sick leave.
But California voters gave concert companies a big win in November, when they voted to support their vote, Proposition 22. The measure said workers delivering food and app-based stakes could remain independent, but may be entitled to additional protections, such as the guaranteed minimum. portable gains and advantages.
DoorDash noted in its earnings release that next quarter will be the first full quarter operating under the Prop 22 “and ongoing price controls.” The company said it will likely negatively affect its uptake rate and adjusted EBITDA.
This story is unfolding. Please check for updates again.
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