DoorDash revenue beats on sustained demand for food delivery By Reuters

(Reuters) -DoorDash Inc reported quarterly revenue on Wednesday that beat analysts’ estimates, as people continued to order in after using the company’s food delivery services frequently during the peak of the pandemic.

The company shares rose 23.3% to $ 116.99 in after-market trading.

Wall Street analysts have said food ordering habits have likely changed permanently, with delivery service providers including DoorDash, Uber (NYSE 🙂 Eats and Grubhub tipped to show solid growth for several years.

DoorDash has also doubled down on non-restaurant offerings, including grocery, pet food and alcohol to attract more users. It has tied up with a number of retailers, including Ulta Beauty (NASDAQ :), Bed Bath & Beyond (NASDAQ 🙂 and PetSmart.

The biggest US food delivery firm’s revenue rose to $ 1.30 billion in the fourth quarter ended Dec. 31 from $ 970 million a year earlier. Analysts had expected revenue of $ 1.28 billion, according to Refinitiv IBES.

“Higher-than-expected consumer retention and new consumer growth drove the outperformance … DashPass members have higher retention and order frequency than non-members,” DoorDash said.

The company expects first-quarter marketplace gross order value, the total value of all app orders and subscription fees, between $ 11.4 billion and $ 11.8 billion. Fourth-quarter gross order value was $ 11.2 billion.

The company also forecast adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in a range of break-even to $ 500 million for fiscal 2022. It reported adjusted EBITDA of $ 47 million for the fourth quarter.