DoorDash Inc (NYSE:DASH) fell 8% in pre-market trading after it warned 2024 earnings could be impacted by weaker consumer spending.
The delivery company said it expected gross order values (GOV), a key metric in the industry, to reach between US$74 billion and US$78 billion, a healthy jump from the near US$66 billion in 2023.
However, DoorDash warned investors “that consumer spending in any of our geographies could deteriorate relative to our outlook, which could drive results below our expectations.”
Underlying earnings are predicted to reach between US$1.5 billion and US$1.9 billion, an increase on the US$1.19 billion generated in 2023.
In the first quarter, the company said underlying earnings would be between US$320 million and US$380 million, compared with analysts' consensus of US$355 million.
DoorDash also warned that its exposure to multiple geographies means it could face negative impacts if there are changes in the international operating environment, particularly if it affects currencies.
Total orders reached 574 million in the fourth quarter of 2023, a 23% year-on-year rise and up on the 561.3 million forecast by Wall Street.
Revenue lifted by 27% to reach US$2.3 billion, improving on consensus of US$2.25 billion.
Underlying profits in the same period jumped by around US$20 million to US$363 million, meaning 2.1% of GOV fed through to the bottom line in the three months to December 31.
“In 2024, our focus will not change. We will invest to build tools that solve problems for consumers, merchants, and Dashers, while expanding the scale, breadth, and profit potential of our business. We look forward to the work,” the company said in a trading update.