DoorDash's better-than-expected earnings triggered a rally that sent DASH stock surging on Thursday.
In earnings published late Wednesday, San Francisco-based DoorDash reported a loss of 19 cents per share on sales of $2.2 billion for its third quarter ending Sept. 30. Analysts expected the food-delivery company to report a loss of 40 cents on sales of $2.09 billion.
On the stock market today, DASH stock jumped 15.7% to 87.79.
DASH Stock: Orders Up 24%
DoorDash posted a significantly narrower loss compared with the same quarter last year, when the company reported a loss of 77 cents per share. Third-quarter revenue rose 27% year over year.
Further, total orders increased 24% year over year to 543 million, compared with estimates of 522 million. Gross order value also jumped 24% annually, to $16.8 billion.
The company said the quarter marked its best as a public company, factoring in gross order value, revenue and adjusted losses. DoorDash went public in December 2020.
"I think we saw a phenomenal quarter where, frankly, every line of business has accelerated in growth and improved in its unit economics," Chief Executive Tony Xu said on the company's earnings call.
Outlook For Q4
For the current fourth quarter, DoorDash projects gross order value of $17.2 billion at the midpoint of its range. That easily topped analyst projections of $16.6 billion.
"DASH's Q3 report was sterling with a strong beat and raise in the face of ongoing consumer fears, and (it) prompts higher estimates," RBC analyst Brad Erickson said in a client note. "Frequency and product improvements are contributing to durable order and GMV growth; new verticals including grocery and international continue showing strong signals that investments are working, and advertising has barely gotten going."
Erickson maintained a neutral sector perform rating. "Bears may point to an eventually softening consumer but this continues to not play out," he added.
DASH stock had advanced about 55% this year, prior to its earnings release Wednesday.
