This story is breaking and being updated.
DoorDash (DASH) posted a mixed first-quarter earnings report on Thursday, surpassing Wall Street’s expectations with a revenue of $1.08 billion dollars and higher-than expected orders of 329 million, but posted a wider than expected loss of 34 cents per a share.
Here’s what the San Francisco-based company reported, compared to Wall Street estimates, according to a Bloomberg consensus estimate:
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Revenue: $1.08 billion versus $995.65 million expected
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Adj. loss per share (EPS): -$0.34 versus -$0.10 per a share expected
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Orders: 329 million versus 303.8 million expected
The delivery company, which went public in December of 2020, benefited from coronavirus lockdowns, fielding 273 million total orders in 2020 — up a whopping 233% compared to a year prior — that helped them stand out among the competitive delivery industry.
“We expect the strong brand is going to continue to resonate,” Wells Fargo Securities senior analyst Brian Fitzgerald told Yahoo Finance recently. He cited DoorDash app use that remained elevated in the months of January, February, March and April of 2021.
Fitzgerald estimated that Q1 revenue skyrocketed to to under 225% year-over-year, indicative of “torrid growth” that carried over from 2020.
Compared to competitors like Grubhub (GRUB) and Uber Eats (UBER), Fitzgerald added DoorDash is “unique” due to its high growth and its profitability, noting it has “national market share leadership.” He also suggested that takeout or delivery have “become essential” to the way people live —and it might be here to stay.
During the pandemic, the U.S. economy saw “macro shifts in secular growth and it’s a one way ratchet…when the macro situation ameliorates or dissipates, you don’t go back to necessarily the old way of doing things when you found a more efficient way to do stuff,” the analyst explained.
Meanwhile, Steven Fox of Fox Advisors Founder & CEO told Yahoo Finance he is keeping a close eye on the new fee structure for restaurants announced in late April, as local restaurants and customers plan for life after COVID-19 lockdowns.
He’s also keeping a close eye on courier availability, as the company looks to compete with others in the gig economy space like Lyft (LYFT) and Uber.
“If you have a car and you’re in the gig economy, and maybe you’ve been doing more with DoorDash,” a driver can make good money doing both ride sharing and delivery, he explained.
On Monday, DoorDash expanded a partnership with JPMorgan Chase (JPM) to offer complimentary DashPass memberships to Chase card holders, with unlimited $0 delivery fees and reduced service fees on orders over $12 from restaurants, grocery and convenience stores across the U.S. — including its partners like CVS (CVS), Walgreens (WBA) and 7-Eleven.
Back in March, DoorDash also joined the fight against the coronavirus pandemic, announcing plans to team up with two health providers, Vault Health and Everlywell, to offer same-day delivery of COVID-19 test kits with a quick-turnaround.
Shares of DoorDash are up nearly 2 percent in midday training on Thursday.
Brooke DiPalma is a producer and reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at [email protected]. Check out her latest:
