Elaine Jean Tech 02.17.2022 17:Feb PM EST

DoorDash Shares Soared 12% After Fourth Quarter Revenue Reaches $1.3 Billion

DoorDash shares skyrocketed at 12% after announcing fourth-quarter revenue worth $ 1.3 billion.

According to the report released on Wednesday (Feb.16), the delivery company reached 369 million orders during the quarter, representing a 35 percent increase year over year and a higher total than the 361 million orders predicted by analysts.

The total value of gross orders increased by 36% year on year to $11.2 billion, exceeding Wall Street analysts' $10.6 billion forecast. A contributing factor to this is the constant spending of consumers on the delivery of food.

DoorDash Reached $1.3 Billion

DoorDash revenue for the fourth quarter came in at $1.3 billion, exceeding analysts' expectations of $1.28 billion. The company reported a 45-cent loss per diluted share, which was significantly higher than the 25-cent loss figure compiled by Refinitiv.

The company's growth has "normalized" in comparison to the company's skyrocketing growth when the pandemic began in 2020. According to DoorDash Chief Financial Officer Prabir Adarkar, "where we are today is still better than pre-pandemic levels."

Market Watch reported that in 2021, the company reported a net loss of $468 million, or $1.39 per share, on revenue of $4.9 billion. Comparatively, the company suffered a loss of $461 million, or $7.39 per share, in the prior year. Analysts had predicted a loss of $405 million, or $1.18 per share, on revenue of $4.78 billion.

Adarkar also added that "with respect to Q4, we believe we gained share faster than our peers based on their publicly reported numbers."

DoorDash reported that its gross order value increased by 36 percent year over year in the fourth quarter.

The company stated to its shareholders that the demand of their marketplace increased substantially in 2021, exceeding both their expectations and those of many who questioned whether demand could be sustained as restaurants reopened.

What's Next for DoorDash?

Stay-at-home trends fueled by the coronavirus pandemic were a huge benefit for DoorDash.

The company benefited from the fact that many restaurants restricted indoor dining, and consumers opted to order food in order to reduce their exposure to the virus.

Now that Covid-19 restrictions are being lifted, delivery companies are being pressed to demonstrate that they can meet the increased demand.

DoorDash's previous quarter performance shows that it does not expect its momentum to slow down.

According to FactSet, the company expects the marketplace gross order value to be between $48 billion and $50 billion, which is in line with consensus estimates of $49.4 billion from analysts surveyed by the company.

Analysts noted that the company's adjusted Ebitda (earnings before interest, taxes, depreciation, and amortization) for the fourth quarter was relatively low.

DoorDash has stated that it is investing heavily in the expansion of its business into new categories as well as international markets.

As reported by CNBC, analysts at JPMorgan wrote to clients stating, "We believe DASH's investments in growth opportunities-new verticals, services, and "geos"- being funded by profit from its core U.S. restaurant marketplace should be well received at a rising rate environment."