DoorDash stock hit a 52-week high Thursday, but quickly fell from that peak in after-hours trading as investors digested the company’s fourth-quarter earnings.
The delivery company reported a 39-cent-per-share loss, compared to analyst expectations of just 16 cents. That sent shares down more than 9.5% in the post-market at one point. The company, however, attempted to shift investor focus to the overall adjusted EBITA (earnings before interest, taxes and amortization). That number beat expectations of $356 million, coming in at $363 million.
Companies that regularly report losses often point to that figure as a sign of future profits.
“In 2023, we saw more merchants, more consumers, and more Dashers use our platform than ever before,” DoorDash CFO Ravi Inukonda told Fast Company. “DoorDash is continuing to grow at a pace that is unmatched in our industry, and this was a record year across our business––thanks to investments we made in our product and our services, across the globe.”
It was certainly a busy year—and a busy fourth quarter—for DoorDash. In the final three months of 2023, total orders increased to 574 million, a 23% increase over the same period last year. That’s an even higher number of people than those who ordered during the heart of the pandemic (and it’s well above the 561 million orders that analysts were expecting). The company also set a new record for monthly average users, hitting 37 million in December, compared to 32 million the year prior.
DashPass and Wolt+ membership figures also grew to an all-time high of more than 18 million at the end of 2023, a 3-million-member increase for its subscription services.
The company’s international growth, meanwhile, continues at a faster-than-expected pace. And DoorDash said it will invest “aggressively” in that as it looks to build its customer levels even higher.
“As we continue to push our existing businesses forward, it is clear there is much more we can do,” CEO Tony Xu said in a note to shareholders. “If we are to become a foundational element of local commerce in the digital era, we must execute at a high level to improve the efficiency and effectiveness of our existing services, but also innovate to build entirely new products, services, and processes. These are distinct skills, and our hope is that 2024 will be an excellent year for our development of both.”
DoorDash is the largest player in the restaurant delivery field, but it continues to post losses and has burned through tens of billions of dollars since its founding. Investors, though, still like the stock, due to the company’s efficiencies and cost controls, especially when compared to competitors.
Overall losses in the fourth quarter came in at $156 million, compared to $642 million in the same period a year ago. That was still much more than the $61 million loss analysts were looking for.
The company has not offered any timeline on when it expects to become profitable.
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