DoorDash (NASDAQ:DASH) plummeted in pre-market trading after the company’s loss widened in the first quarter and its outlook disappointed investors. The online platform for food delivery reported a loss of $0.06 per share in Q1, compared to a loss of $0.41 per share in the same period last year. Analysts expected the company to report a loss of $0.03 per share.
The company posted revenues of $2.5 billion in Q1, a growth of 23% year-over-year. Analysts were expecting DASH to report revenues of $2.45 billion.
DoorDash’s Key Q1 Highlights
Total orders on the platform increased by 21% year-over-year to 620 million in Q1, while marketplace gross order value (GOV) grew by 21% year-over-year to $19.2 billion. The company defines marketplace GOV as the total dollar value of orders completed on its platform. The substantial increase in transaction volume not only indicates a burgeoning customer base but also promises significant revenue growth.
DASH’s Q2 Outlook
Looking forward to the second quarter, DASH expects its marketplace GOV to be in the range of $19 billion to $19.4 billion while adjusted EBITDA is likely to be between $325 million and $425 million. The marketplace GOV forecast was below Street estimates of $19.22 billion.
Is DoorDash a Good Stock?
Analysts remain cautiously optimistic about DASH stock, with a Moderate Buy consensus rating based on 18 Buys and 10 Holds. Over the past year, DASH has soared by more than 100%, and the average DASH price target of $139.54 implies an upside potential of 9.5% from current levels.
