DoorDash forecasts strong quarter on resilient delivery demand
forecast third-quarter
gross merchandise value
above Wall Street expectations after topping estimates on Wednesday, betting on robust demand for food and grocery deliveries through its platform.
The company's offers and promotions, particularly in its U.S. and international markets for members, have attracted budget-conscious consumers seeking value to its online services.
DoorDash expects gross merchandise value, a measure of the total dollar value of orders placed through its platform, to be between $24.2 billion and $24.7 billion for the current quarter, above estimates of $23.73 billion, according to estimates compiled by LSEG.
The San Francisco-headquartered company's shares were up nearly 5% in extended trading after the company also topped estimates for
second-quarter revenue
, gross merchandise value and adjusted profit. Its stock has risen 52% so far this year.
Rival
UberEats
' parent
Uber
also forecast a strong third quarter earlier in the day, banking on robust demand for ride-hailing and deliveries.
DoorDash also reiterated its expectations for its purchase of U.K. rival
Deliveroo
to close in the fourth quarter.
DoorDash has expanded its online delivery options beyond food to groceries, alcohol, electronics and beauty products, boosting sales while restaurants battled sluggish demand amid economic uncertainty.
Gross merchandise value rose 23% to $24.2 billion in the quarter ended June 30, beating estimates of $23.58 billion, with total orders climbing 20% year-over-year.
Total revenue of $3.28 billion for the reported three-month period also beat estimates of $3.16 billion.
Net revenue margin inched higher to 13.5% from 13.3% a year ago, helped by robust
advertising revenue
.
Excluding items, DoorDash reported second-quarter earnings per share of 65 cents, beating estimates of 44 cents.
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