DoorDash sees record orders and users, but losses grow
DoorDash said Thursday that it saw a record number of orders and active users in the fourth quarter as it expanded overseas and gained market share at home.
The San Francisco-based delivery company said its monthly active users grew 28% to a record 34 million during the October-December period. DashPass members __ who pay $9.99 per month for free delivery on most orders __ grew 50% to 15 million.
Some of that growth came from Wolt Enterprises, the Finnish delivery service DoorDash acquired last year for $8.1 billion. Wolt operates in 22 countries where DoorDash previously had no presence, including Germany, Sweden, Hungary and Israel.
But Ravi Inukonda, DoorDash’s vice president of finance __ who was named chief financial officer on Thursday __ said DoorDash is also growing in the U.S., where its market share has climbed to near 60%.
Inukonda said DoorDash has confidence in its outlook this year because the company has grown despite inflation and economic headwinds. DoorDash expects gross order volumes between $60 billion and $63 billion this year, up from $53.4 billion in 2022.
“Food is relatively inelastic. People need to do that grocery shopping,” he said. “And we have a product and service that people love.”
Total orders grew 27% to 467 million. That beat Wall Street’s forecast of 459 million, according to analysts polled by FactSet. Fourth quarter revenue jumped 40% to $1.82 billion, also ahead of analysts’ forecast of $1.77 billion.
But profits remain elusive for the 10-year-old company. DoorDash said its net loss widened to $640 million, or $1.65 per share, as it expanded into new categories __ like a recently announced partnership with the beauty product store Sephora __ and integrated Wolt into its operations.
Wall Street had expected a loss of 67 cents per share.
DoorDash’s net income was also impacted by restructuring charges. The company announced in December that it was laying off 1,250 workers __ or 6% of its workforce __ because it hired too many people when sales surged during the pandemic.
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