Shares of DoorDash soared approximately 10% in after-hours trading Wednesday, following the company's announcement of a second-quarter marketplace gross order value (GOV) forecast ranging from $32.4 billion to $33.4 billion. This projection exceeded Wall Street's consensus estimates, signaling robust demand for the delivery platform despite a slight decline in profitability.
Marketplace GOV, which encompasses all dollar transactions on completed orders including taxes, tips, and fees, serves as a key metric for DoorDash. The upbeat guidance comes amid a competitive landscape, with rival Instacart also projecting second-quarter gross transaction value above analyst expectations, and Uber issuing a bookings outlook that cleared analysts' bar, as reported by Reuters.
For the first quarter ended March 31, DoorDash reported total orders surged 27% year-over-year to 933 million. Marketplace GOV jumped 37% to $31.6 billion, while revenue rose 33% to $4.036 billion. However, net income slipped 5% to $184 million. Adjusted EBITDA climbed 28% to $754 million, with adjusted earnings per share of 42 cents topping the 36-cent consensus from analysts polled by LSEG, according to Reuters.
Revenue fell short of the $4.14 billion analysts had anticipated, but investors appeared to overlook the miss, focusing instead on the strong forward guidance. Bloomberg noted that DoorDash's Q2 GOV forecast surpassed its own estimate of roughly $32.3 billion, while Reuters had analysts' consensus pegged at $31.8 billion.
DoorDash's results were bolstered by its acquisition of Deliveroo, the UK-based delivery unit still being integrated. Excluding Deliveroo, first-quarter orders rose 16%, with GOV up 24% and revenue up 21%. The company highlighted gains beyond its core restaurant segment, noting that U.S. grocery and retail attracted more new customers than any previous quarter, while selection expanded in categories like apparel and auto parts. Internationally, Deliveroo saw increased monthly active users, orders, and GOV across the UK, France, and Italy.
Cost pressures remain a sticking point. DoorDash projects spending over $50 million on its Dasher gas relief program in Q2, aimed at helping U.S. and Canadian drivers manage rising fuel expenses. To offset these payouts, the company plans to shift investment away from other areas. Margins are under pressure, with adjusted EBITDA margin on GOV easing to 2.4% from 2.6% a year ago. The midpoint of DoorDash's Q2 adjusted EBITDA outlook—$770 million to $870 million—lands just under the analyst consensus of $822.5 million, per Reuters.
Despite near-term headwinds, DoorDash reaffirmed its longer-term 2026 profit outlook, expecting adjusted EBITDA as a percentage of GOV to tick up from 2025, excluding Deliveroo. For this year, Deliveroo is expected to contribute roughly $200 million to adjusted EBITDA.
