Doordash forecasts strong quarter on resilient delivery demand

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5 hours ago

(Reuters) -Doordash 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, has 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.
Doordash's shares were up 6% in extended trading after the company also topped estimates for second-quarter revenue and gross merchandise value.
The company 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.
Rival UberEats' parent Uber also forecast a strong third quarter earlier in the day, banking on robust demand for ride-hailing and deliveries.