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DoorDash shares gains 6% on Q4 revenue beat; guidance seen as conservative
Published Feb 17, 2023 04:27AM ET
Updated Feb 17, 2023 04:34AM ET
© Reuters DoorDash shares soar 9% on Q4 revenue beat, COO to resign
By Davit Kirakosyan and Senad Karaahmetovic
DoorDash (NYSE:DASH) reported solid Q4 results with revenue of $1.82 billion (up 40% year-over-year) coming in better than the consensus estimate of $1.77B, as consumer demand remains strong.
Q4 EPS was ($1.65), compared to the consensus estimate of ($0.67). Total orders grew 27% year-over-year to 467 million, driven by growth in consumers and consumer engagement at DoorDash as well as its acquisition of Wolt. Q4 Marketplace GOV grew 29% year-over-year to $14.4B.
DoorDash shares trade about 6% higher in pre-market Friday.
Monthly Active Users (MAUs) in December increased to over 32M from over 25M a year ago, with year-over-year growth in both DoorDash and Wolt MAUs.
The company expects Q1 Marketplace GOV to be in a range of $15.1-$15.5B, with adjusted EBITDA expected to be $120-$170M.
For the full 2023-year, the company anticipates Marketplace GOV to be in a range of $60.0-$63.0B, with adjusted EBITDA expected to be $500-$800M.
The company also announced that Christopher Payne plans to resign as COO and President of DoorDash, effective March 1, 2023. Prabir Adarkar, who has served as the company’s CFO since 2018, has been appointed COO and President, effective March 1, 2023.
Raymond James analysts said the offered guidance is likely conservative.
"We maintain our positive fundamental view based on: 1) Large TAM for food delivery as well as expansion opportunities in adjacent categories; 2) DoorDash has established itself as the leading food delivery platform in the U.S. with 50% plus market share; 3) We expect ~15% long-term revenue growth; 5) we believe DoorDash can achieve 25% plus long-term EBITDA margins. While positive on the fundamental outlook, we believe risk/reward is balanced at current levels," they said in a client note.
Mizuho analysts hiked the price target by $10 to $75 per share, citing improving share gains.
"The quarter alleviated two key investor concerns going into 4Q22 — GOV growth and EBITDA for FY23 given uncertainties related to the upcoming NYC minimum wage increase... Given the premium valuation to gig peers, we would wait for a better entry point," analysts wrote to clients.
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