DoorDash (NASDAQ:DASH) shares soared more than 8% in premarket trading on Thursday, following a strong second-quarter earnings report that beat expectations, boosted by resilient demand for food and grocery delivery services despite a challenging consumer environment.
The company reported Q2 earnings of $0.65 per share, handily surpassing Wall Street’s estimate of $0.43. Revenue climbed to $3.3 billion, topping analysts’ forecasts of $3.16 billion.
A key driver behind the results was DoorDash’s increased use of promotions and discounts, which helped attract more cost-conscious consumers, particularly in the U.S. The company has also broadened its product offerings, expanding beyond food delivery to include categories such as electronics, beauty items, and alcohol, positioning itself as a more versatile alternative to traditional dining amid economic uncertainty and cautious household spending.
“Outperformance was driven by an acceleration in order volume, as continued membership adoption and new verticals help to increase order frequency. New verticals continue to expand, as both order frequency and unit economics for new verticals continue to improve,” analysts at BMO Capital Markets noted.
Looking ahead, DoorDash projects third-quarter gross order value (GOV) in the range of $24.2 billion to $24.7 billion, coming in above several consensus estimates and signaling strong momentum in customer engagement.
For Q3, adjusted EBITDA is expected to fall between $680 million and $780 million, well ahead of the $637 million forecast by analysts at Stifel, suggesting improved operating efficiency and continued order growth.
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