DoorDash stock pops 18% after company posts record number of orders

DoorDash reported second-quarter results after the bell Thursday that beat Wall Street’s revenue expectations but showed a greater loss per share than anticipated.

Shares of DoorDash popped 18% in after-hours trading.

Here’s how the company did:

• Loss per share: 72 cents vs. 41 cents expected by analysts, according to Refinitiv.
• Revenue: $1.61 billion vs. 1.52 billion expected by analysts according to Refinitiv.

DoorDash said the total number of orders it delivered grew 23% year over year to 426 million, an all-time high.

Revenue grew 30% year over year, which the company attributed to increased order frequency and more monthly active users.

DoorDash said it anticipates a “softer consumer spending environment” in the second half of the year. It cautioned investors that consumer spending could deteriorate faster than anticipated, which could drive results below its expectations.

The company said it expects adjusted EBITDA to fall between $25 million and $75 million in the third quarter, a wide range that covers analyst expectations of $51.2 million, according to StreetAccount.

DoorDash said it is aware that challenging macroeconomic conditions exist for consumers as they grapple with uncertainty and high levels of inflation but that it has not seen changes in its U.S. customer engagement.

“Although we have noticed several external indications of shifts in consumer discretionary spending, so far we have not seen changes to consumer engagement on our U.S. Marketplace that are measurable or distinguishable from normal seasonal patterns,” the company said.

In order to offset the impact of high gas prices, DoorDash spent over $40 million providing extra gas savings and mileage-based bonus payments to drivers in the second quarter. The company has extended its gas savings program through August.

The company completed its acquisition of international food delivery platform Wolt during the quarter. Wolt accounted for 12 million of DoorDash’s total orders.