DoorDash, Inc. Inc. on Wednesday reported third-quarter results and a fourth-quarter demand outlook that topped expectations, as the company continues to invest in expansion and improving service.
The delivery platform - which handles orders for takeout food, groceries and other items - reported third-quarter net income of $162 million, or 38 cents a share, contrasting with a loss of $73 million, or 19 cents a share, in the same quarter last year.
Revenue rose 25% year over year to $2.71 billion. Gross order value, or the total dollar value of orders made on the platform, rose 19% to $20 billion.
Analysts polled by FactSet expected DoorDash to earn 20 cents a share, with revenue of $2.66 billion and gross order value of $19.76 billion.
The company forecast fourth-quarter gross order value of $20.6 billion to $21 billion, with the midpoint of that range a bit higher than the $20.64 billion forecast by FactSet.
After initially falling more than 4% after hours, shares ended the extended session flat. As of Wednesday's close, the stock was up 57% so far this year.
"Our goal is to build a large and durable business that helps local merchants succeed and expands the potential of local economies," the company said in a statement. "To do this, we must consistently invest in our existing services, launch entirely new services, and ensure we are generating strong returns on capital, so that we can invest even more in the future."
"We believe our results in [the third quarter of] 2024 reflect our ambition to pursue large growth opportunities, our optimism in believing we can innovate around the problems of the day, and our humility in focusing on small improvements in day to day operations," it continued.
Orders on DoorDash jumped 18% during the quarter to 643 million, helped by existing customers and nonrestaurant orders. For newer customers, order rates were a bit higher than average, it said, a trend it attributed to efforts to broaden its delivery services.
"Our existing consumers drive the vast majority of our volume, so we must perpetually create new value for them in order to grow efficiently," DoorDash said.
DoorDash on Wednesday also announced a partnership with ride-hailing service Lyft, Inc. that offers benefits from both companies. Starting on Wednesday, members of DashPass - a subscription service offered by DoorDash that provides additional perks - and Lyft riders can get discounts on rides and two free priority pickup upgrades per month. Lyft riders can also get a free three-month DashPass trial.
