Tony Xu, co-founder and CEO of DoorDash Inc., smiles during the Wall Street Journal Tech Live conference in Laguna Beach, California, USA, on Tuesday, October 22, 2019.
Martina Albertazzi | Bloomberg | Getty Images
DoorDash on Thursday reported its Q4 2020 revenue after the clock that beat analysts’ revenue estimates, but included a large net loss in its first release as a public company.
The share fell by more than 12% after the report.
Here are the key numbers:
- Income: $ 970 million, compared to $ 938 million, according to a Refinitiv survey among analysts
- Loss per share: $ 2.67, customized
CNBC does not compare reported earnings with analytical estimates for a company’s first report after it became known, as uncertain stock counts could skew expectations.
The company reported a net GAAP loss of $ 312 million, which they said was mostly due to IPO-related costs and inventory-based compensation. This is still more than double its GAAP net loss in Q4 2019, which amounted to $ 134 million.
Its revenue for the quarter represented 226% year-on-year.
DoorDash’s public debut came as Americans continued to rely on food delivery services while taking precautions to keep Covid-19 distribution to a minimum. DoorDash had growing demand, with total orders in the fourth quarter up 233% year-on-year to 273 million.
But DoorDash told shareholders it expects some of the rising winds they experienced with home orders in the US to turn around once the country gets the virus under control.
“We hope that markets will start to open soon. If that happens, we expect a decline in consumer engagement and average order values, although the exact quantity remains unclear,” the company wrote. “In any scenario, we will remain focused on reducing friction in our Marketplace and implementing it against the factors that will cause long-term consumer adoption: selection, experience and value.”
The company warned that the outlook for the year ‘remains very uncertain’, but provided some guidance based on the assumption that a ‘successful rollout of COVID-19 vaccines’.
The company predicts that adjusted EBITDA for the first quarter will fall between $ 0 and $ 45 million and will range from $ 0 to $ 200 million for the full year 2021. It expects the gross order value on its market to be between $ 8, 6 billion and $ 9.1 billion for the first quarter and between $ 30 will decrease. billion and $ 33 billion for the full year.
DoorDash started trading on the New York Stock Exchange in December, increasing its first trading day by more than 85% with a market capitalization of $ 60.2 billion. The stock has since fallen below valuation and currently stands at about $ 53 billion.
The company disclosed $ 149 million in revenue losses of $ 1.9 billion through September 2020 in its IPO prospectus, which shows large growth and losses compared to the previous year. In 2019, DoorDash posted a net loss of $ 533 million on revenue of $ 587 million during the same nine months.
The pandemic has shed a bright spotlight on concert workers for programs such as DoorDash, Lyft and Uber, which rely on a workforce of independent contractors. The health crisis renews calls from progressives to give gig workers the protection of employees, including health care benefits and paid sick leave.
But California voters gave the performance companies a big victory in November when they voted to support their vote, Proposition 22.. earnings and portable benefits.
DoorDash notes in its earnings release that next quarter will be its first full quarter operating under Prop 22 “and ongoing price controls.” The company said it is likely to have a negative impact on its take-off rate and adjusted EBITDA.
This story unfolds. Check back for updates.
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