DoorDash, a major food delivery company recently shared figures for its earnings for the latest quarter. After sharing the earnings figures, the company saw its share prices spike significantly.
DoorDash Shares Jumped 6%
The share prices for DoorDash spiked 6% in the latest trading session. The investors were not expecting the company to report strong earnings for the fourth quarter of 2022.
However, the company revealed that its earnings were much stronger than what the analysts had set the forecast for.
The company confirmed that its sales in the fourth quarter were much higher than what the analysts had predicted.
Based on the strong earnings and sales, the company has confirmed that they have increased their guidance for the ongoing quarter.
Earnings Registered by DoorDash
For the fourth quarter, DoorDash reported that the loss per share expectations were 68 cents per share. However, the loss per share they recorded in the same quarter was $1.65 cents per share.
The revenue that the analysts had predicted for the fourth quarter was $1.77 billion. The revenue they generated in the respective quarter was $1.82 per share.
Apart from sharing the earnings report, the company has also shared its plans for share buyback. According to the officials, they have plans of buying back shares for the company that would be worth $750 million.
Wider-Than-Expected Losses
Apart from sharing stronger earnings reports, the company also shared information about the losses they recorded in the fourth quarter.
They provided detailed information as to what caused them to face wider-than-expected losses in the recent quarter of 2022.
They revealed that the major reason behind their wider-than-expected earnings was the charges they had to face for an acquisition they recently carried out.
As per the officials, they recently acquired Wolt, which is a major food delivery company based in Finland. The company spent a fortune on the acquisition of the delivery company.
In addition to the above, the company also took care of the compensation expenses that are based on stocks. This happened because the company announced the reduction of their employees.
It was in the month of November 2022 when the company announced the layoff of 1,250 employees. As a result, the company had to issue a compensation plan for the employees being cut.
Orders Delivered in Q4 2022
DoorDash officials were excited to share the delivery statistics for the fourth quarter of 2022. They revealed that in the fourth quarter, they were able to carry out 467 million food deliveries.
Compared to the fourth quarter of 2021, they recorded a 27% surge in food deliveries in the year 2022. The company’s actual food deliveries were much higher than what the analysts had expected.
The StreetAccount analysts had predicted that the food deliveries that the company would achieve in the fourth quarter would be 458 million. However, they achieved 9 million more deliveries in the respective quarter.
Guidance for Q1 2023
The company also shared its guidance for the ongoing quarter. It revealed that in the running quarter, it is expected that the minimum gross order volume that they may touch would be $15.1 billion.
As for the top gross order volume level, they are expecting it to shoot up to $15.5 billion. As for the StreetAccount analysts, they have predicted that DoorDash may hit a gross order volume worth $15 billion.
Retirement of Christopher Payne
The executives at DoorDash have also shared an update about the change in the top leadership. They have confirmed that Christopher Payne, the COO and president of DoorDash will be retiring from his position.
They have revealed that Prabir Adarkar, the current CFO of DoorDash will be succeeding Payne as the new president and COO of the company.
Payne will be taking up the role of COO starting the 1st of March 2023. As for the vacant CFO spot with Adarkar’s promotion, Ravi Inukonda will be taking over as the new CFO.