DoorDash Inc (NYSE:DASH)’s latest quarterly results failed to galvanise interest on Wall Street, with the San Francisco-based food delivery company’s share price falling 13% in opening exchanges.
The results revealed decent financial progress at the group, with revenues surging to $2.5 billion, up from a flat $2 billion in the same quarter last year, driven by a 21% increase in total orders, which reached 620 million.
DoorDash penned a net loss of $23 million for the quarter, which was a significant improvement from the $161 million in losses in the first quarter of 2023.
However, the Street may have expected a greater narrowing of losses than what was disclosed.
“DoorDash is driving higher engagement as order frequency continues to rise, and importantly, new cohorts are joining the platform at a higher order frequency,” noted Wedbush analysts.
They added that “unit economics are gradually improving across all verticals as the company benefits from rising take rate and modest leverage in sales and marketing this year”.
Uber still remains Wedbush’s preferred stock for category exposures, with analysts giving DASH a neutral rating against Uber’s outperform.