DoorDash, a company that brings food to your doorstep, did really well in the second quarter. They had more food deliveries than ever before. Even though the cost of food was increasing, people didn’t stop wanting to order restaurant meals to enjoy at home. As a result, Door Dash’s shares rose about 4% after the news.
In the last three months, customers made a huge 532 million orders, and the overall worth of these orders went up by 26%, reaching a total of $16.5 billion. This growth came from their restaurant services and recent endeavors like convenient items and groceries. Because of this impressive showing, the company anticipates the complete value of orders for the whole year to fall within the range of $64.2 billion to $65.2 billion.
Amidst the pandemic, when eating inside restaurants wasn’t doable, DoorDash saw a huge uptick in people wanting food delivered as they stayed indoors. This led them to become the top choice for food delivery in the US, holding a big 65% slice of the market by June.
To tackle the higher costs of restaurant food, DoorDash began giving customers special offers and improved bargains through ads and sponsored deals. They’ve also launched the Dash Pass subscription service. With this, customers pay a monthly fee to enjoy special offers and benefits, such as lower delivery charges.
While their restaurant and convenience deliveries are making money, their other services are still not profitable. To deal with this, DoorDash had to let go of some employees last year and is now being cautious with its spending. In the second quarter, their financial report showed a loss of $172 million. This is partly because they’re investing in growing beyond just delivering meals.
DoorDash has big plans to grow its business. They want to do this by trying new things like going to other countries and showing more ads. They’re also working on some new projects to see if they can make their business even better.
They went to different countries by buying a company from Finland that delivers food called Wolt Enterprises Oy. But doing all of this cost them some money because they had to give out more company stock to pay their employees. Despite this, Door Dash’s CEO and CFO are satisfied with the company’s progress and didn’t mention any plans for further layoffs.
During the second quarter, Door Dash’s adjusted earnings before interest, tax, depreciation, and amortization were $279 million, surpassing Wall Street’s estimate of $214.5 million. This indicates the company’s financial performance was stronger than expected during that period.