Doordash Rises 14% After 10% Drop on Earnings Miss
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- Doordash stock fell 10% after the Q4 earnings release, then rose 14% in extended trading, recovering from the initial drop.
- Doordash posted Q4 earnings per share of 48 cents and revenue of $3.96 billion, both missing LSEG estimates of 59 cents and $3.99 billion respectively.
- Doordash reported total orders up 32% year‑over‑year to 903 million and marketplace gross order value up 39% to $29.7 billion.
- Tony Xu praised Deliveroo’s fast growth after its acquisition, saying it is expanding faster while maintaining profit.
- Doordash forecast Q1 adjusted EBITDA of $675‑$775 million, below StreetAccount’s $802 million estimate, citing Deliveroo investment costs, a $20 million storm impact, and higher regulated‑market expenses.
- Doordash is undertaking a “massive and expensive” integration of its platform with Deliveroo and Wolt, acknowledging that a less flexible codebase could have cut AI integration costs but risked customer outcomes.
Why it matters: Investors are nervous as Doordash’s heavy spending on Deliveroo integration and autonomous‑delivery tech contributed to a 10% stock drop and a Q1 EBITDA outlook below analysts’ expectations, while the company reported 32% order growth, Deliveroo’s fast expansion, and emphasized the importance of its massive platform integration.
