DoorDash said Thursday that its revenue increased 40% year-over-year in the first quarter of this year, showing there’s continued consumer appetite for its core food-and-goods delivery model beyond COVID-19 highs.
The San Francisco-based company reported revenue of $2.04 billion, compared to the $1.46 billion it reported for the first quarter of 2022. The strong quarter proves strong execution at the company while consumers have also fully adopted delivery on demand, CFO Ravi Inukonda told Fast Company.
The company’s stock gained more than 6% on the report.
Investors had been concerned following the easing of coronavirus restrictions as to whether pandemic darlings, like DoorDash, could continue to grow and compete against tough financial comparables. Shares of DoorDash as of Thursday afternoon, not including the post-close jump, were up nearly 30% year to date, though down 23% from the same time a year ago.
DoorDash said it reached all-time highs in total orders, marketplace gross order value, and revenue during the first quarter.
Total orders for the quarter grew 27% year-over-year to 512 million. Marketplace gross order value for the quarter also gained 29% from the same quarter a year ago to $15.9 billion.
The company also shaved off its net loss to $162 million, while adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) increased to $204 million. DoorDash had posted a wide net loss in the final quarter of 2022, with some of that charge related to layoffs and stock-based compensation. Inukonda, who took over as CFO in March, said he’s confident in the health of the company and didn’t predict any future cuts.
For the current quarter, DoorDash expects to report marketplace gross order value between $`15.9 billion and $16.2 billion. It also anticipates adjusted EBITDA of between $180 million and $230 million.
Several gig economy companies have benefitted from the ongoing economic downturn, as more people are looking to part-time jobs to combat rising inflation. DoorDash said in its 2022 DoorDash Economic Impact Report, also released Thursday, that 76% of the people it surveyed said they felt “less stressed and anxious about their financial situation” because they could dash as needed. Meanwhile, two thirds of respondents said they dashed to make up for lost income or reduced hours at their full-time or part-time jobs.