DoorDash DASH reported a GAAP loss of 38 cents per share in second-quarter 2024, narrower than the year-ago quarter’s loss of 44 cents per share. The figure missed the Zacks Consensus Estimate of a loss of 10 cents.
Revenues increased 23.3% year over year to $2.63 billion and surpassed the consensus mark by 3.7%. The upside was driven by strong performance in total orders and Marketplace GOV, alongside enhanced logistics efficiency and an increased contribution from advertising.
Quarter in Details
In the second quarter, total orders increased 19% year over year to 635 million. The figure beat the Zacks Consensus Estimate by 1.27%.
Marketplace GOV increased 20% year over year to $19.7 billion. The figure beat the consensus estimate by 2.03%.
DoorDash, Inc. Price, Consensus and EPS Surprise
DoorDash, Inc. price-consensus-eps-surprise-chart | DoorDash, Inc. Quote
The adjusted gross margin was 49.2% compared with 49.2% in the year-ago quarter.
The contribution margin was 31.4% compared with 29.1% in the year-ago quarter.
Adjusted sales & marketing expenses inched up 9.6% year over year to $470 million.
Adjusted research & development expenses increased 20% year over year to $156 million.
Adjusted general & administrative expenses increased 13.3% from the year-ago quarter’s level to $239 million.
Adjusted EBITDA was $430 million compared with the year-ago quarter’s adjusted EBITDA of $279 million.
Balance Sheet and Cash Flow
As of Jun 30, 2024, DoorDash had $4.85 billion in cash and cash equivalents and short-term marketable securities compared with $4.49 billion as of Mar 31, 2024.
Cash flow from operations was $530 million in the second quarter compared with the first-quarter 2024 cash flow of $553 million.
Free cash flow was $451 million, lower than the first quarter’s figure of $487 million.
Guidance
For the third quarter, DoorDash anticipates Marketplace GOV to be in the range of $19.4-$19.8 billion.
Adjusted EBITDA is expected to be in the range of $470-$540 million.
Zacks Rank & Other Stocks to Consider
DASH currently carries a Zacks Rank #5 (Strong Sell).
The company’s shares have gained 18.2% year to date compared with the Zacks Computer & Technology sector’s 17.2% growth.
Shopify SHOP, Analog Devices ADI and Digital Ocean DOCN are other top-ranked stocks that investors can consider in the broader sector. DigitalOcean sports a Zacks Rank #1 (Strong Buy) at present, while Analog Devices and Shopify carry a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shopify’s shares have lost 25.4% year to date. SHOP is set to report its second-quarter 2024 results on Aug 7.
Analog Devices’ shares have gained 10.2% year to date. ADI is set to report third-quarter fiscal 2024 results on Aug 21.
DigitalOcean’s shares have lost 15.9% year to date. DOCN is set to report second-quarter results on Aug 8.
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