DoorDash Inc. (NYSE: DASH) swung to a wider-than-expected net loss in the fiscal second quarter, despite record total orders and gross order volume. Shares of the company opened about 4% down on Friday but recovered the entire intraday loss later on.
Second-quarter financial performance
Notable figures in DoorDash’s quarterly report on Thursday include an annualised growth of 70% in gross order volume, 69% in total orders, and 83% in revenue. In a letter to shareholders, the online food ordering company said it “anticipates a seasonal decline in new consumer acquisition and order rates in Q3”.
It, however, raised its guidance for the full financial year. On the earnings call, the management attributed the quarterly loss to letting employees selling their shares after DoorDash went debuted on the NYSE last year in December.
Highlights from CEO Xu’s interview with CNBC’s “TechCheck”
DoorDash was reportedly in talks with Instacart recently for a potential merger. While that didn’t work out, CEO Tony Xu pointed out that non-restaurant orders grew faster than the restaurant orders in the recent quarter. Commenting further on the company’s grocery push on CNBC’s “TechCheck” and said:
“Grocery is at an earlier inflexion point in terms of online penetration because no one has figured out the right model for it. So, DoorDash is entering with a middle-of-the-week use case – items you consume the most often like milk, bread, and cereal. So far, it’s resonating tremendously well with partners like Albertsons and others.”
DoorDash recently partnered with notable retailers like Walmart, Albertsons, and PetSmart, which are using DoorDash’s logistics to offer on-demand, same-day delivery via their own digital channels. These partnerships, as per CEO Xu, have been “huge drivers of growth for DoorDash”.
DoorDash’s market share in the United States currently stands at 56%, making it the country’s largest food delivery company.
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