By Eric J. Savitz
DoorDash shares headed lower late Thursday even though the food-delivery company reported better results than expected for the fourth quarter. Investors appear to have been looking for a more decisive increase in the outlook for the first quarter and beyond.
In late trading, the stock was down 6.7%, to $117.89.
In the December quarter, revenue came in at $2.3 billion, up 23% from a year ago and a little ahead of the Wall Street consensus forecast of $2.25 billion. Adjusted earnings before interest, taxes, depreciation, and amortization was $363 million, slightly above the Street at $356 million. The company lost 39 cents a share in the quarter, while analysts had expected a loss of 16 cents.
Gross order volume was $17.6 billion, up 22% from a year ago, and above the consensus call for $17.29 billion among analysts tracked by FactSet. Total orders were 574 million, up 23% and above the consensus expectation for 561 million.
Management had told investors to expect gross order volume of between $17 billion and $17.4 billion, with adjusted Ebitda of between $320 million and $340 million.
For the March quarter, DoorDash sees gross order volume of $18.5 billion to $18.9 billion, with adjusted Ebitda ranging from $320 million to $380 million. The Street consensus expectation has been for $18.6 billion in gross orders, and adjusted Ebitda of $362 million.
For all of 2024, the company sees gross order volume of between $74 billion and $78 billion, with adjusted Ebitda ranging from $1.5 billion to $1.9 billion. The consensus view on the Street has been that gross orders would total $76.8 billion with adjusted Ebitda of $1.63 billion.
“In 2024, our focus will not change,” the company said in a statement. “We will invest to build tools that solve problems for consumers, merchants, and Dashers, while expanding the scale, breadth, and profit potential of our business. We look forward to the work.”
In a letter to shareholders, the company railed against legislative efforts to place more rules around gig workers for DoorDash and others.
“We believe strongly in working with policymakers to enact laws that protect choice, access, and security for workers,” the company said in the letter. “However, certain jurisdictions have now enacted bad laws around independent contractor work…that fail to recognize the incrementality of dashing and instead attempt to conform dashing to traditional structures of work.”
The more further regulations go in that direction, it said, the greater the likely financial damage for individuals and local economies. In New York City and Seattle, it said, recent regulations will result in lost revenue for merchants and local governments, as well as fewer opportunities for delivery workers.
“Said differently, these laws take the sand back out of the jar, leaving empty spaces and lost opportunity,” the company said.
Write to Eric J. Savitz at eric.savitz@barrons.com