DoorDash Stock Drops as Q1 Revenue Undershoots Analysts’ Estimates

KEY TAKEAWAYS

DoorDash shares are sinking Tuesday after the food-delivery company posted first-quarter revenue that undershot analysts’ forecasts.

DoorDash—which separately announced that it was buying U.K. firm Deliveroo for
nearly $4 billion
and restaurant booking platform SevenRooms for $1.2 billion—had announced yesterday that it was moving forward its results to before markets opened Tuesday instead of after the bell Wednesday.

The San Francisco-based company reported Q1 revenue of $3.03 billion, below the $3.10 billion expectation of analysts polled by Visible Alpha. Earnings per share of $0.44 topped estimates of $0.39.

For the second quarter, DoorDash sees Marketplace GOV—the total dollar value of orders completed on its Marketplaces—of $23.3 billion to $23.7 billion and adjusted
EBITDA
between $600 million and $650 million. Analysts expect $23.5 billion and $633.1 million, respectively, per Visible Alpha.

DoorDash shares sank 8% soon after the opening bell. They are up 12% this year.

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