DoorDash has announced its financial results for the third quarter, showcasing a strong performance with significant profit and revenue growth. The company's revenue hit $2.706 billion, marking a 25% increase compared to the same period last year. This figure surpasses analysts' expectations of $2.66 billion.
Net profit attributable to common shareholders reached $162 million, a turnaround from a $73 million loss in the previous year. Earnings per share for Class A and B shares were $0.38, surpassing the expected $0.22 per share and improving from last year's loss of $0.19 per share.
The company's total order volume in the third quarter climbed 18% to 643 million, while the total order value rose 19% to $20.002 billion. The adjusted gross profit was $1.377 billion, with an improved gross profit margin of 50.9% compared to 48.7% last year.
DoorDash's contribution profit increased to $930 million, representing 4.6% of the total order value, up from 3.8% the previous year. The adjusted EBITDA was $533 million, accounting for 2.7% of the total order value, up from 2.1% a year earlier.
Total expenses rose to $2.599 billion, with increases in revenue costs, sales and marketing, research and development, general and administrative expenses, and depreciation and amortization. Operating profit stood at $107 million, reversing a $108 million loss from the previous year.
Cash flow from operations increased to $531 million, with free cash flow rising to $444 million. The company holds cash and equivalents of $3.664 billion at the end of the third quarter.
DoorDash's board has authorized a stock repurchase program worth up to $1.1 billion, with $224 million spent so far, leaving $876 million available.
For the fourth quarter, DoorDash expects the total order value to be between $20.6 billion and $21 billion, with adjusted EBITDA projected at $525 million to $575 million. The company emphasizes potential risks due to foreign market exposure and consumer spending variations.
DoorDash's stock price increased slightly in regular trading and rose further in after-hours trading, reflecting investor confidence following the strong quarterly results.
