DoorDash anticipates positive core profit in 2024 due to strong delivery demand.

 

DoorDash anticipates positive core profit in 2024 due to strong delivery demand. output 

DoorDash surpassed revenue projections for the fourth quarter and forecast an annual core profit that was significantly higher than anticipated on Thursday, indicating that more consumers were using the company's online delivery service to acquire groceries and food.

The San Francisco-based company's shares fell almost 3% in after-hours trading after it predicted current-quarter core profit would be lower than expected due to increased costs.

Through more recent collaborations with businesses like Best Buy and Victoria's Secret in industries other than its primary food delivery business, the company has been progressively increasing its market share in the United States.

CEO Tony Xu stated in a letter to shareholders, "We have been able to continue attracting new consumers and driving higher consumer engagement for the simple reason that our service continues to get better."

Based on LSEG data, DoorDash anticipates 2024 adjusted earnings before tax, interest, depreciation, and amortization (EBITDA) of $1.5 billion to $1.9 billion, with the midpoint exceeding $1.63 billion.

However, it projects adjusted EBITDA for the first quarter of between $320 million and $380 million, with the midpoint falling short of projections of $355.3 million.

Due to the continued high cost of dining out, the number of orders placed during the fourth quarter ending December 31 increased by 23% to 574 million over the same period the previous year.

DoorDash anticipates a gross order value (GOV) of between $74 billion and $78 billion in 2024, up from $66.8 billion in 2023. GOV is a crucial measure that displays the total value of all app orders and subscription fees.

Up to $1.1 billion in share repurchases were also approved by the meal delivery company.

Comparing the reporting quarter's sales to projections of roughly $2.24 billion, it increased 26.7% to $2.30 billion. output 

A year ago, the net loss was $640 million, or $1.65 per share, but it decreased to $154 million, or 39 cents per share.

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