DoorDash just had its best quarter since its IPO

DoorDash reported its “best quarter ever” since its IPO in a number of key categories on Wednesday, which it says was driven partly by efficiency and customer demand as summer ended.

The delivery giant posted revenue of $2.2 billion for its third quarter, which is up 27% from the same quarter a year ago. Analysts were expecting sales of $2.09 billion for the quarter.

“The business is firing on all cylinders both on the top line as well as the bottom line,” CFO Ravi Inukonda tells Fast Company. The number of total orders grew 24% year-over-year to 543 million. Marketplace gross order value, or the total value of its app orders and subscription fees, hit $16.8 billion—also up 24%.

“Not only are the users going up, but the usage is also going up, and when I look at it, we’ve truly become a daily habit for many consumers,” Inukonda added.

DoorDash is among the first of the major U.S. gig players to report earnings this season. Uber, which runs a successful Eats business, is set to release its latest financials on Tuesday. Investors have been keeping their focus on whether these gig companies’ models are successful and will be able to deliver strong returns, which has proven difficult.

Still, in a sign of optimism, DoorDash majorly narrowed its net loss down to $75 million compared to $172 million in the prior quarter. DoorDash, which typically sees the most growth in its first and last quarter, expects fourth-quarter GOV to come in between $17 billion and $17.04 billion.

“We’re seeing a lot of response to the product improvements that we’re making,” Inukonda said. “We redesigned the consumer app, we redesigned the dasher app, we’ve made a ton of improvements on the merchant side. The impact of all of these things is what’s baked into our Q4 guidance.”

https://www.fastcompany.com/90976578/doordash-just-had-its-best-quarter-since-its-ipo?partner=rss&utm_source=rss&utm_medium=feed&utm_campaign=rss+fastcompany&utm_content=rss