Tony Xu, co-founder and CEO of DoorDash Inc., smiles at the Wall Street Journal Tech Live conference in Laguna Beach, California, USA, on Tuesday, October 22, 2019.
Martina Albertazzi | Bloomberg | Getty Images
DoorDash reported earnings in Q4 2020 after Thursday’s bell, which exceeded analysts’ revenue estimates, but included a large net loss in its first launch as a public company.
The stock fell by more than 12% during trading hours after the report.
Here are the key numbers:
- Income: $ 970 million, compared to $ 938 million expected, according to a final survey by analysts
- Losses per share: $ 2.67, unadjusted
CNBC does not compare earnings reported with analysts’ estimates for a company’s first report after it went public, as the uncertain number of shares may distort expectations.
The company reported a net GAAP loss of $ 312 million, which it said was mainly due to IPO costs and stock compensation. This is still more than double the GAAP net loss in the fourth quarter of 2019, which reached $ 134 million.
Its revenues for that quarter represented an increase of 226% over the year.
DoorDash’s public debut came as Americans continued to rely heavily on food delivery services, while taking precautions to minimize the spread of Covid-19. DoorDash recorded a booming demand, with total orders in Q4 increasing by 233% year-on-year to 273 million.
But DoorDash told shareholders it expects some of the backwinds it has experienced from US home orders to return once the country controls the virus.
“We hope that the markets will start to open soon. As this happens, we expect consumer engagement and average order values to decline, although the exact amount remains unclear,” the company wrote. “In any scenario, we will remain focused on reducing friction in our market and executing against the factors that will lead to long-term consumer adoption: selection, experience and value.”
The company warned that the outlook for the year “remains extremely uncertain”, but offered some guidance based on assuming a “successful launch of COVID-19 vaccines”.
The company estimates that adjusted EBITDA in the first quarter will decrease by $ 0 million to $ 45 million and range from $ 0 million to $ 200 million for the full year 2021. The gross value of the order in its market is expected to decrease by $ 8 $ 6 billion and $ 9.1 billion for the first quarter and between $ 30 billion and $ 33 billion for the full year.
DoorDash began trading on the New York Stock Exchange in December, ending the first trading day with over 85%, with a market cap of $ 60.2 billion. Since then, the stock has fallen below this valuation, now standing at around $ 53 billion.
The company disclosed losses of $ 149 million on revenue of $ 1.9 billion by September 2020 in its IPO prospectus, showing high growth and lower losses compared to the previous year. In 2019, DoorDash had a net loss of $ 533 million on revenue of $ 587 million in the same nine months.
The pandemic has shown a stronger focus on concert workers for apps like DoorDash, Lyft and Uber, which rely on a workforce of independent contractors. The health crisis has renewed calls from progressives to offer the giant’s workers employee protection, including health care benefits and paid sick leave.
But California voters gave concert halls a major victory in November, when they voted to support their voting measure, Proposition 22. The measure said that food delivery workers and rideshare applications may remain independent, but may have the right to do so. to additional protections, such as guaranteeing minimum gains and portable benefits.
DoorDash mentioned in its earnings launch that the next quarter will be the first full quarter operating under Prop 22 “and continuous price control”. The company said they will have a negative impact on the takeover rate and adjusted EBITDA.
This story is developing. Return to updates.
Subscribe to CNBC on YouTube.
LOOK: Delivery workers risk their lives to bring food during the coronavirus – here’s how it’s for them