DoorDash on Wednesday raised its outlook for marketplace gross order value in the second quarter, signaling continued strength in consumer usage of its platform. The company pegged expected marketplace GOV for the quarter at $32.4 billion to $33.4 billion, above analysts' consensus of $31.8 billion.
Management attributed the stronger forecast to resilient demand and ongoing expansion of the business into grocery, retail categories and international markets. The company also reported better-than-expected results for quarterly adjusted profit and marketplace GOV for the most recent quarter, while noting that consumers are increasingly prioritizing convenience - a trend that is supporting growth even for non-essential online purchases and lifting demand for grocery delivery services.
Shares of the company rose roughly 10% in extended trading following the results and guidance.
For the second quarter, DoorDash put forward adjusted operating earnings before interest, taxes, depreciation and amortization (EBITDA) guidance of $770 million to $870 million. The midpoint of that range is slightly below the average analyst estimate of $822.5 million, according to the data referenced by the company.
DoorDash cautioned that the gross cost of its Dasher gas relief program will exceed $50 million, a result of elevated gasoline prices. The company said it launched an emergency relief program last month to assist U.S. gig workers affected by surging oil prices that stem from the U.S.-Iran war.
Reporting results for the first quarter ended March 31, DoorDash delivered adjusted earnings of $0.42 per share, ahead of analysts' expectations of $0.36 per share. Quarterly revenue totaled $4.04 billion, coming in below the consensus estimate of $4.14 billion.
Peers in the delivery and online grocery space have issued similar upbeat guidance for the upcoming quarter. Earlier on Wednesday, companies including Instacart projected second-quarter gross transaction or booking measures largely above Wall Street expectations, while Uber also forecast quarterly bookings above estimates.
Market context
The company highlighted that continued demand for convenience and its efforts to expand into non-restaurant categories and international markets are supporting GOV growth. At the same time, costs tied to supporting its driver base amid higher fuel prices are a material line item for the period.