DoorDash Reports Mixed Q2 Results; Shares Fall 5.2%

Shares of online food ordering and delivery platform DoorDash, Inc. (DASH) declined 5.2% and closed at $178.45 on Thursday after the company reported mixed results for its second quarter ended June 30, 2021.

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DoorDash reported quarterly revenues of $1.24 billion, up 83.1% from the same quarter last year. Further, the revenue figure surpassed the Street’s estimate of $1.08 billion. The revenue growth was primarily driven by the growth in total orders, which increased 69% from last year to $345 million. Also, take rates, which aided the revenue growth, stood at 11.8% versus 11% in Q2 2020.

The company reported a quarterly loss per share of $0.30, worse than the consensus estimate of a loss of $0.21 per share.

In other operating metrics, the company’s marketplace gross order value (GOV) witnessed a growth of 70% from the prior year to $10.5 billion. Adjusted gross profit also increased 96% year-over-year to $700 million.

For the third quarter and 2021, the company anticipates marketplace GOV to be in the range of $9.3 billion to $9.8 billion and $39 billion to $40.5 billion, respectively. Similarly, it expects adjusted EBITDA to be in the range of $0 to $100 million for the third quarter and $150 million to $350 million for 2021.

The management of DoorDash said, “We believe the broad secular shift toward omni-channel local commerce remains nascent. However, the scale and fragmentation of local commerce suggests the problems to be solved will get more difficult, coordination between internal and external stakeholders will become more complex, and vectors for competitive threats will increase. In order to meet these challenges and build the business we envision, we intend to invest aggressively to improve our capabilities in restaurants, expand into new categories, broaden Platform Services, and increase our geographic scope.” (See DoorDash stock chart on TipRanks)

On August 2, Gordon Haskett Capital analyst Robert Mollins initiated a Buy rating on the stock with a price target of $206, implying upside potential of 9.5% from current levels.

Overall, the stock has a Moderate Buy consensus based on 6 Buys and 6 Holds. The average DoorDash price target of $181 implies 3.8% downside potential from current levels. Shares have declined 0.7% over the past year.