DoorDash (DASH) Q4 2020 results

DoorDash on Thursday announced its fourth quarter 2020 results after Thursday’s bell, which topped analysts’ earnings estimates but included a large net loss in its first release as a public company.

The stock fell more than 12% after hours of trading after the report.

Here are the key figures:

• Returned: $ 970 million, vs. $ 938 million expected, according to Refinitiv survey of analysts
• Loss per share: $ 2.67, unadjusted

CNBC does not compare reported earnings to analyst estimates for a company’s first report after its IPO, as uncertain stock numbers can skew expectations.

The company reported a net GAAP loss of $ 312 million, which it said was mainly due to costs related to the IPO and stock-based compensation. That’s even more than double its GAAP net loss in the fourth quarter of 2019, which stood at $ 134 million.

Its revenue for the quarter was up 226% year-over-year.

DoorDash’s public debut came as Americans continue to rely heavily on food delivery services while taking precautions to minimize the spread of Covid-19. DoorDash saw booming demand, with total fourth-quarter orders up 233% year-over-year to 273 million.

But DoorDash told shareholders it expects some of the favorable winds to US housekeeping orders will reverse once the country gets under control.

“We hope the markets will start to open soon. In this case, we expect lower consumer engagement and average order values, although the exact amount remains uncertain,” the company wrote. “In all scenarios, we will remain focused on reducing friction in our market and implementing against the factors that will drive long-term consumer adoption: selection, experience and value.

The company warned that the outlook for the year “remains very uncertain,” but provided guidance based on its hypothesis of a “successful deployment of COVID-19 vaccines.”

The company expects Q1 Adjusted EBITDA to be between $ 0 million and $ 45 million and range from $ 0 million to $ 200 million for the full year 2021. It expects the gross value of orders on its market place is between $ 8.6 billion and $ 9.1 billion for the first quarter and between $ 30. and $ 33 billion for the entire year.

DoorDash began trading on the New York Stock Exchange in December, ending its first day of trading up more than 85% with a market cap of $ 60.2 billion. The stock has since plunged below that valuation, currently hovering around $ 53 billion.

The company disclosed $ 149 million in losses on revenue of $ 1.9 billion through September 2020 in its IPO prospectus, showing strong growth and reduced losses from the previous year . In 2019, DoorDash recorded a net loss of $ 533 million on revenue of $ 587 million in those same nine months.

The pandemic has put the spotlight on gig workers for apps like DoorDash, Lyft and Uber, which rely on a workforce of independent contractors. The health crisis has renewed calls from progressives to give yard workers employee protections, including health benefits and paid sick leave.

But California voters gave concert companies a major victory in November when they voted to back their voting measure, Proposition 22. The measure indicated that app-based food delivery and rideshare workers could remain independent but could be entitled to additional protections, such as a guaranteed minimum earnings and transferable benefits.

DoorDash noted in its results release that the next quarter will be its first full quarter operating under Prop 22 “and price controls ongoing.” The company said it would likely have a negative impact on its recovery rate and adjusted EBITDA.

This story is developing. Check back for updates.

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