DoorDash a San Francisco-based delivery company,reported higher-than-expected revenue in the first quarter of 2024. The company’s strong growth in U.S. grocery orders helped offset the impact of slowing restaurant demand. However, despite the positive revenue news, DoorDash’s shares fell more than 15% in after-hours trading. Investors expressed concern about rising costs.
In Q1, DoorDash’s net loss narrowed to $23 million, compared to a loss of $161 million during the same period last year. While the loss of 6 cents per share was better than expected, it still exceeded Wall Street’s forecast of a 3-cent loss. DoorDash attributed the increased costs to higher marketing expenses and research investments.
The San Francisco-based delivery company also revealed that its total revenue rose 23% to $2.51 billion during January to March. U.S. grocery orders doubled in value compared to the same period last year, reflecting the company’s successful foray into grocery delivery. DoorDash remains committed to growth, aiming not only for 2024 but for sustained success in the years ahead¹. Despite the share price drop, the company’s focus on innovation and expansion continues to drive its trajectory in the competitive food delivery market. 🚚📈
