DoorDash on Wednesday projected stronger-than-expected third-quarter performance, saying both its marketplace gross order value and core profitability should come in above analysts' estimates as demand for delivered food, groceries and convenience items remains elevated.
The company set a third-quarter marketplace gross order value, or GOV - the total dollar amount of orders placed on its platform - in a range of $33 billion to $34 billion. That projection exceeds the $32.64 billion consensus compiled by LSEG.
For adjusted earnings before interest, taxes, depreciation and amortization, DoorDash is forecasting a third-quarter figure between $950 million and $1.10 billion, compared with an analyst expectation of $979.6 million.
Executives attributed the momentum to consumers continuing to prioritize convenience, extending beyond restaurant deliveries into groceries and everyday essentials. The company has been broadening its service mix, stepping up investment in membership products such as DashPass and widening grocery delivery coverage in the United States and overseas, including Canada, through partnerships with retailers such as Sobeys and Safeway.
Last month DoorDash introduced DoorDash Air, its in-house drone delivery program, as part of efforts to reduce reliance on human couriers and to expand the logistics footprint available to the marketplace. The company also works with national chains including Domino's and Kroger as part of its merchant base.
DoorDash cautioned that adjusted EBITDA as a percentage of marketplace GOV is expected to decline sequentially in the fourth quarter. Management said that pattern is broadly consistent with the prior year and reflects seasonally higher Dasher and insurance costs, in addition to elevated investment in technology and autonomous-delivery initiatives.
Results for the second quarter ended June 30 underline the current strength. Marketplace GOV rose 36% year over year to $33.08 billion, topping the $32.08 billion estimate. Adjusted EBITDA expanded 40% to $914 million, above expectations of $841.8 million.
Sector implications
- Food delivery and quick-commerce services benefit from sustained consumer demand for convenience.
- Grocery retail and logistics networks are affected as DoorDash expands coverage through retail partnerships.
- Autonomous delivery and logistics technology receive increased funding as the company invests in DoorDash Air and other initiatives.