DoorDash on Wednesday posted better-than-expected sales for its fourth quarter thanks to its growing active-user base and new offerings like deliveries from groceries and pet stores.
The San Francisco-based delivery company said its revenue grew 34% to $1.3 billion in the October-December period. That topped Wall Street’s forecast of $1.28 billion, according to analysts polled by FactSet.
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DoorDash’s shares jumped 27% in after-market trading Wednesday. Prior to that surge, the stock was down 36% so far in 2022 through the end of Wednesday's regular-session trading.
DoorDash said its active users __ or people who have placed an order in the last month __ grew 22% to a record 25 million. DashPass members __ who pay a $9.99 monthly fee for unlimited free deliveries __ grew to 10 million during the quarter, up from 9 million at the end of the third quarter.
In a conference call with investors, DoorDash Chief Financial Officer Prabir Adarkar said the omicron variant appeared to have little impact on sales, which continue to grow even as case levels plummet.
Non-restaurant orders grew in the October-December period as DoorDash added new partners like PetSmart, Albertsons and Ulta Beauty to its offerings. DoorDash said 14% of its active users ordered from a non-restaurant partner in December.
But DoorDash Chairman and CEO Tony Xu said the company still sees the potential for significantly more restaurant sales. DoorDash gained delivery-market share last year but still makes up just 5% of annual U.S. restaurant sales, he said.
“We’re a tiny, tiny, tiny fraction of the opportunity in front of us," Xu said.
DoorDash said its total orders grew 35% to 369 million in the fourth quarter, also ahead of analysts’ expectations.
The company narrowed its loss to $155 million for the quarter, from $312 million in the same period a year ago. The latest quarter's loss, of 45 cents per share, was higher than the 23-cent loss Wall Street had forecast.
Adarkar said the driver shortages that plagued the company earlier in 2021 have abated, and the company believes it will be “well supplied” with drivers this year. DoorDash said more than 6 million drivers made deliveries for the company in 2021.
DoorDash said it expects gross order volumes of $11.4 billion to $11.8 billion in the first quarter of this year, up from $11.2 billion in the fourth quarter.
The company said it may update that forecast when it completes its plan to buy Wolt Enterprises, a Finnish delivery service. DoorDash announced in November that it planned to buy Wolt for $8.1 billion; the deal is expected to close in the first half of this year.