DoorDash surprises with stellar quarterly profit and new partnerships

The online delivery platform DoorDash surprised in the fourth quarter with a significantly better core profit than analysts had expected. Thanks to increased demand from consumers shopping for everything from groceries to cosmetic products through the platform, the company is pursuing a clear growth strategy during the holidays. For the first time since going public at the end of 2020, DoorDash closed a quarter with a profit, also exceeding revenue expectations. This impressive performance comes amid an intensified competitive environment, particularly from rivals such as UberEats and Instacart. To secure its market shares, DoorDash has expanded its product range through strategic partnerships, for instance with Sephora and grocery retailer Wakefern. In the third quarter, the company recorded an 18 percent increase in orders to a total of 643 million. Additionally, DoorDash announced a partnership with Lyft to offer members of the ride-sharing app a three-month trial membership with DashPass, which includes discounts on orders and rides. DoorDash forecasts an adjusted EBITDA for the fourth quarter between $525 and $575 million, which is on average above analysts' estimates. The expected gross order value is projected to be between $20.6 and $21 billion. In the third quarter, DoorDash's revenue increased by 25 percent to $2.71 billion, exceeding analysts' expectations. Net profit reached $162 million, equivalent to earnings of 38 cents per share, compared to a loss of $73 million in the previous year. Despite these positive figures, the company's stock price fell by 5 percent in after-hours trading.