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• DoorDash's shares surge 8% in after hours trading
DoorDash (NYSE: DASH) reported a 35% increase in revenue to $1.46 billion, for the first quarter, even after restaurants reopen, suggesting that consumers haven’t seen the last of delivery services.
The company said that total number of orders it delivered during the quarter rose 23% to 404 million and that it added the most new customers to its service since the first quarter of 2021.
DoorDash's shares rose 8% in extended trading, despite dropping 10% during regular trading hours.
What it missed
Despite the increased revenue, the rate of revenue growth throughout the quarter was slow. The company reported a loss per share of $0.48 versus the expected figure of $0.41 loss per share.
The company also said that it paid fewer incentives and promotions to attract delivery workers compared to the first quarter of 2021. To retain delivery agents, the company offered an incentive of a 10% cash back on gas.
The company told its investors that it is taking market share in the food delivery market in the US, and plans to spend the cash created from food deliveries to move into other categories, including groceries, alcohol, and retail delivery.
Source - DoorDash
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