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Despite challenging macroeconomic conditions and a high level of inflation, DoorDash has not seen changes in its consumer engagement and loyalty. This resulted in great revenue.
DoorDash Inc (NYSE: DASH), the technology company behind the online food ordering and delivery platform, has released its financial results for Q2 2022. The company has gone far beyond Wall Street’s expectations, beating the $1.52 billion expected by analysts with $1.61 billion.
For Q2 which ended on June 30, 2022, DoorDash delivered 426 million orders, which marked a 23% growth year over year. Besides, its revenue increased by 30% year over year.
For comparison, in the first quarter of 2022, the company reported 404 million in total orders. It also came in at 23% growth from Q1 2021.
While showing great results in terms of revenue, DoorDash turned out to be not as good when it came to losses. Its loss per share totaled 72 cents, more than 41 cents analysts expected.
How has DoorDash achieved such results? According to the company, its most significant accomplishment in the quarter completed its combination with Wolt. In June this year, DoorDash acquired Wolt, a food delivery company based in Europe. Further, in the 12 months ending June 30, DoorDash added more than 80,000 net new merchants to its marketplace, improved key quality metrics, added new features to its app to improve customers’ experience, and increased DashPass adoption, which helped lower the total cost to consumers.
DoorDash CEO Tony Xu and CFO Prabir Adarkar said:
“We spend the majority of our time and energy building products and working to improve our execution.”
Further, they noted that despite challenging macroeconomic conditions and a high level of inflation, DoorDash has not seen changes in its consumer engagement and loyalty:
“Although we have noticed several external indications of shifts in consumer discretionary spending, so far we have not seen changes to consumer engagement on our US. Marketplace that are measurable or distinguishable from normal seasonal patterns.”
In the third quarter of 2022, DoorDash is expecting its GOV to be within the range of $13 billion to $13.5 billion. For the full of 2022, the company is planning its GOV to be in the range of $51 billion to $53 billion.
“If consumer engagement changes more meaningfully going forward, it could prompt tactical changes to the amount of capital we deploy or how we deploy it. In any environment, we intend to maintain our long-term focus on building products that delight our customers and improve the potential of local commerce,” said DoorDash.
Following the revenue report, DoorDash stock rocketed. It ended the trading session yesterday at $81.36, 2.34% up. In the pre-market trading today, DASH shares are trading at $91.08. DoorDash’s market cap is $31.6 billion. Year-to-date, DoorDash stock is 45.36% down.