By
Mayowa Adebajo
August 29th, 2023
DoorDash saw more new customers in the last quarter than in any other quarter in 2021.
Online food ordering and delivery company DoorDash Inc (NYSE: DASH) has continued to record significant growth, according to its Q1 2022 earnings report. The company continues to boom even with ease in lockdowns, and people return to everyday lives. DoorDash went public in 2020 during the pandemic’s peak when people were forced to stay indoors. As a result of the restrictions, many resorted to ordering food online and DoorDash was at their rescue.
DoorDash Reports Increased Order Volume in Q1 2022
The profits DoorDash amassed in Q1 2022 show that online ordering and delivery remain the preferable choice to many. Compared to Q1 2021, DoorDash said its number of orders increased 23% to a whopping 202 million. The company also onboarded new customers during the period. Additionally, the company pulled in $1.46 billion in revenue at a 35% gain in the quarter, surpassing earlier estimates of $1.38 billion. In reaction to the remarkable Q1 2022 financial result, DoorDash stock jumped 10% in after-hours trading.
Although DoorDash saw gains in Q1 2022, its growth has lessened compared to what the company recorded in the first quarter of last year. In the first quarter of last year, DoorDash’s order volume jumped 219%.
According to the letter DoorDash wrote to shareholders, the company saw more new customers in the last quarter than in any other quarter in 2021. The company mentioned the growing adoption of its subscription membership program, DoorPass. In Q1 2022, DoorDash recorded 25 million monthly active users. It said customers are placing orders via its app more frequently than before, with 10 million DoorPass members in the most recent quarter.
However, the American company reported a net loss of $167 million. Meanwhile, analysts have predicted a $142.9 million net loss.
DoorDash’s Investment Approach
Further, in the letter, DoorDash said it discovers its investment areas by listening to consumers, Dashers, and merchants. The company said it had dedicated some platforms to learning how to better serve customers. These platforms include Chief Restaurant Advisor, WeDash Program, Dasher Community Council, and customer support channels. DoorDash added:
“For each of our investment areas, we often start with a small team and a relatively small budget. We then aim to manage the scale and pace of investment based largely on the level of consumer demand as a measure of product-market fit and the state of unit economics as a measure of capital efficiency and potential long-term cash production. In cases where consumers are the customer (rather than merchants or Dashers), we generally pay particular attention to engagement metrics, both for the new service on a stand-alone basis and for our Marketplace as a whole.”
DoorDash stock is currently up 6.07% at pre-market trading and trading at $77.59. The company’s stock is down, with over 50% loss in its year-to-date record.