We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
DoorDash (DASH) Down 3.3% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
It has been about a month since the last earnings report for DoorDash, Inc. (DASH - Free Report) . Shares have lost about 3.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is DoorDash due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
DoorDash Reports Q1 Loss, Beats Revenue Estimates
DoorDash reported a GAAP loss of 6 cents per share in first-quarter 2024, narrower than the year-ago quarter’s loss of 41 cents.
Revenues increased 23.5% year over year to $2.51 billion The upside was driven by strong performance in total orders and Marketplace GOV, alongside enhanced logistics efficiency and an increasing contribution from advertising.
DoorDash’s success in the first quarter was further bolstered by growth in its new verticals, particularly in the grocery segment, which witnessed triple-digit growth year over year.
Quarter in Details
In the first quarter of 2024, total orders increased 21% year over year to 620 million. The figure beat the Zacks Consensus Estimate by 2.35%.
Marketplace GOV increased 21% year over year to $19.2 billion. The figure beat the Zacks Consensus Estimate by 2.30%.
Adjusted gross margin was 48.7% compared with 49.1% reported in the year-ago quarter.
The contribution margin was 29.9% compared with 26.2% in the year-ago quarter.
In the quarter under review, adjusted sales & marketing expenses inched up 1.5% year over year to $473 million.
In the first quarter, adjusted research & development expenses rallied 24% year over year to $160 million.
Adjusted general & administrative expenses increased 10% from the year-ago quarter’s levels to $220 million.
Adjusted EBITDA was $371 million compared with the year-ago quarter’s adjusted EBITDA of $204 million.
Balance Sheet and Cash Flow
As of Mar 31, 2024, DoorDash had $4.49 billion in cash and cash equivalents and short-term marketable securities compared with $4.07 billion as of Dec 31, 2023.
Cash flow from operations was $553 million in the first quarter compared with the fourth-quarter 2023 cash flow of $485 million.
Free cash flow in the first quarter was $487 million, higher than the fourth quarter’s figure of $398 million.
Guidance
For the second quarter of 2024, DoorDash anticipates Marketplace GOV in the range of $19-$19.4 billion.
Adjusted EBITDA is expected to be $325-$425 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -52.54% due to these changes.
VGM Scores
At this time, DoorDash has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, DoorDash has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
DoorDash (DASH) Down 3.3% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for DoorDash, Inc. (DASH - Free Report) . Shares have lost about 3.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is DoorDash due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
DoorDash Reports Q1 Loss, Beats Revenue Estimates
DoorDash reported a GAAP loss of 6 cents per share in first-quarter 2024, narrower than the year-ago quarter’s loss of 41 cents.
Revenues increased 23.5% year over year to $2.51 billion The upside was driven by strong performance in total orders and Marketplace GOV, alongside enhanced logistics efficiency and an increasing contribution from advertising.
DoorDash’s success in the first quarter was further bolstered by growth in its new verticals, particularly in the grocery segment, which witnessed triple-digit growth year over year.
Quarter in Details
In the first quarter of 2024, total orders increased 21% year over year to 620 million. The figure beat the Zacks Consensus Estimate by 2.35%.
Marketplace GOV increased 21% year over year to $19.2 billion. The figure beat the Zacks Consensus Estimate by 2.30%.
Adjusted gross margin was 48.7% compared with 49.1% reported in the year-ago quarter.
The contribution margin was 29.9% compared with 26.2% in the year-ago quarter.
In the quarter under review, adjusted sales & marketing expenses inched up 1.5% year over year to $473 million.
In the first quarter, adjusted research & development expenses rallied 24% year over year to $160 million.
Adjusted general & administrative expenses increased 10% from the year-ago quarter’s levels to $220 million.
Adjusted EBITDA was $371 million compared with the year-ago quarter’s adjusted EBITDA of $204 million.
Balance Sheet and Cash Flow
As of Mar 31, 2024, DoorDash had $4.49 billion in cash and cash equivalents and short-term marketable securities compared with $4.07 billion as of Dec 31, 2023.
Cash flow from operations was $553 million in the first quarter compared with the fourth-quarter 2023 cash flow of $485 million.
Free cash flow in the first quarter was $487 million, higher than the fourth quarter’s figure of $398 million.
Guidance
For the second quarter of 2024, DoorDash anticipates Marketplace GOV in the range of $19-$19.4 billion.
Adjusted EBITDA is expected to be $325-$425 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -52.54% due to these changes.
VGM Scores
At this time, DoorDash has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, DoorDash has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.