DoorDash shares rally after earnings beat, helped by expansion beyond restaurants

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Company expects ‘significant levels of ongoing investment in new categories and international markets’

Online delivery company DoorDash Inc. on Wednesday reported third-quarter results that beat expectations, as its expansion beyond restaurants helped grow orders, but it said it expected “significant levels of ongoing investment” up ahead as it tries to widen its service options.The company reported a third-quarter net loss of $75 million, or 19 cents a share, compared with $296 million, or 77 cents a share, in the same quarter last year. Sales jumped 27% to $2.16 billion.

The company said it expected gross order value of $17 billion to $17.4 billion in the fourth quarter. Analysts polled by FactSet expected $16.66 billion. But that outlook, DoorDash said, “anticipates significant levels of ongoing investment in new categories and international markets.” Some analysts have said that DoorDash’s size and “resilient” consumer spending would help it navigate any potential soft spots in demand. Still, others have worried about the return of student-loan payments, after a pandemic-era pause, and the impact on demand for food delivery.

 

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