[ad_1] The post DoorDash Stock Surges on First Quarter Earnings Beat appeared first on Millennial Money. Shares of DoorDash (NYSE: DASH) skyrocketed on Friday, up by 22.65% as of 2:16 p.m. EST, after the company reported strong earnings results for the first quarter that crushed analyst expectations. The food delivery platform also offered a rosy outlook, dispelling fears that demand would fall as the pandemic slowly subsides in key markets. DoorDash has been a massive beneficiary from shifting consumer behavior during the crisis as people stopped going to restaurants and ordered more delivery. Here’s what drove DoorDash’s results Revenue in the first quarter nearly tripled to $1.1 billion, easily beating the consensus estimate of $990 million in sales. That translated into a net loss per share of $0.34, which was worse than the $0.14 per share in losses that Wall Street analysts were modeling for. Adjusted EBITDA came in at $43 million, near the high end of DoorDash’s guidance. Total orders skyrocketed by 219% to 329 million, with Marketplace GOV (gross order value) surging 222% to $9.9 billion. Both of those key metrics hit new quarterly records, and DoorDash said improved customer retention helped drive the results. Additionally, DoorDash has been making progress expanding into non-restaurant categories, having its Dashers deliver everything from convenience store items to groceries to alcohol to pet supplies. Non-restaurant orders now comprise over 7% of total orders. “As we continue to expand our Marketplace beyond restaurants, our goal is to improve the consumer experience by executing against these same vectors, but in a broader fashion; providing selection across multiple categories, quality and consistency in the experience with all partner merchants, and affordability that spans delivery, pickup, and at-work use cases,” the company wrote in a letter to shareholders. Vaccinations in the United States are driving a hopeful decline in COVID-19 cases and deaths, allowing more markets to reopen and allowing people to start dining in more frequently again. DoorDash said the return to in-store dining has a smaller impact on its order volumes than expected. Upbeat outlook DoorDash’s guidance was also encouraging for investors, with Marketplace GOV in the second quarter forecast in the range of $9.4 billion to $9.9 billion. That should result in adjusted EBITDA of breakeven to $100 million in the second quarter. Looking farther out, the company significantly boosted its outlook for Marketplace GOV in 2021. DoorDash now expects Marketplace GOV to be $35 billion to $38 billion for the year, up from its previous guidance of $30 billion to $33 billion. That should result in adjusted EBITDA of breakeven to $300 million this year. The outlook assumes that vaccine distribution continues and in-store dining rates increase, while DoorDash’s business also experiences seasonality. Order rates tend to decline during the summer months before rising again in the winter. Pick Like A Pro Where to invest $500 right now Lots of new investors take chances on long shots instead of buying shares of great companies. I prefer businesses like Amazon, Netflix, and Apple — they’re all on my best stocks for beginners list. There’s a company that “called” these businesses long before they hit it big. They first recommended Netflix in 2004 at $1.85 per share, Amazon in 2002 at $15.31 per share, and Apple back in the iPod Shuffle era at $4.97 per share. Take a look where they are now. That company: The Motley Fool. For people ready to make investing part of their strategy for financial freedom, take a look at The Motley Fool’s flagship investing service, Stock Advisor. They just announced their top 10 “best buys now” across the entire stock market. Whether you’re starting with $100, $500, or more, you should check out the full details. Click here to learn more The post DoorDash Stock Surges on First Quarter Earnings Beat appeared first on Millennial Money. [ad_2] Source link
