DoorDash: Successful Price Forecasting and Strategic Partnerships Ensure Growth

The American online delivery service DoorDash expects a core profit for the fourth quarter that exceeds analysts' estimates. In an industry characterized by competitive pressure, the company is particularly relying on increased demand during the holidays, as consumers increasingly order items ranging from groceries to cosmetics through the platform. For the first time since its IPO at the end of 2020, DoorDash is also able to report a quarterly profit, surpassing analysts' sales expectations in the process. With strategic partnerships, including those with Sephora and Wakefern, DoorDash is managing to maintain its market position despite strong competition from UberEats and Instacart. In the third quarter, DoorDash achieved growth in market share across all business areas, as CFO Ravi Inukonda stated. The total number of orders increased by 18%, reaching 643 million orders. A new collaboration with Lyft offers users of the ride-sharing app three months of free DashPass, while DoorDash customers receive significant discounts on Lyft rides. For the fourth quarter, DoorDash is forecasting an adjusted EBITDA between $525 million and $575 million, slightly raising the market expectations of $544.8 million. The gross order value, a key indicator of the total value of all orders and subscriptions, is projected to be between $20.6 billion and $21 billion, slightly above previous estimates. In the third quarter, DoorDash recorded a 25% increase in revenue to $2.71 billion, exceeding the analyst expectation of $2.66 billion. The net income attributable to DoorDash shareholders rose to $162 million or 38 cents per share, compared to a loss of $73 million or 19 cents per share the previous year. Nevertheless, the company's stock price fell by 5% in after-hours trading.