DoorDash forecasts strong Q3 growth, beats estimates

Key facts

• DoorDash forecasts Q3 marketplace gross order value (GOV) of $33 billion to $34 billion, above estimates of $32.64 billion.
• The company expects Q3 adjusted EBITDA between $950 million and $1.10 billion, exceeding expectations of $979.6 million.
• DoorDash reported Q2 GOV of $33.08 billion, up 36% year-over-year, and adjusted EBITDA of $914 million, up 40%.
• DoorDash launched its in-house drone delivery program, DoorDash Air.
• The company is increasing investments in membership offerings and expanding grocery delivery.

DoorDash projected strong third-quarter financial results, anticipating gross order value and core profit to surpass Wall Street estimates, buoyed by persistent consumer demand for convenient delivery services. The company reported that its second-quarter performance exceeded expectations, with marketplace gross order value (GOV) rising 36% to $33.08 billion and adjusted EBITDA increasing 40% to $914 million.

For the third quarter, DoorDash forecasts GOV to be between $33 billion and $34 billion, exceeding the $32.64 billion anticipated by analysts. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) are expected to range from $950 million to $1.10 billion, also above the consensus estimate of $979.6 million.

The company is actively diversifying its offerings beyond restaurant deliveries, emphasizing convenience for groceries and everyday essentials. Recent initiatives include the launch of its in-house drone delivery program, DoorDash Air, aimed at expanding its logistics network and reducing reliance on human couriers. DoorDash is also increasing investments in its membership programs, such as DashPass, and broadening its grocery delivery reach through retail partnerships in the U.S. and Canada.

DoorDash noted that adjusted EBITDA as a percentage of marketplace GOV is expected to decline sequentially in the fourth quarter, consistent with seasonal trends of higher Dasher and insurance costs, alongside increased investment in technology and autonomous delivery.