Bullish Stock to Watch: DoorDash Inc (NYSE: DASH)

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DoorDash Inc (NYSE: DASH) stock rose over 0.5% on August 13th, 2021 (as of 11:18:14 AM UTC-4 · USD ; Source: Google finance) as the pandemic-era boom in food delivery stayed strong even after easing curbs and growing vaccination rates encouraged people to dine out more. The company’s loss widened more than expected in the second quarter as the U.S. upstart spent heavily to expand internationally and into a crowded market for grocery during the pandemic. The company has reported GAAP net loss of $102 million, compared to net income of $23 million in Q2 2020. The company’s total expenses more than doubled to $1.34 billion, overshadowing a surge in revenue. Further, the demand for delivery of essentials has stayed strong during the health crisis, leading DoorDash to sign new partnerships with pet specialty retailer PetSmart Inc, grocer Albertsons Inc and plant-based meat maker Beyond Meat.

The company has increased its presence outside its core market of the United States by expanding into Canada, Australia and Japan. The international business, grew faster both quarter on quarter and year on year compared to the U.S. business. The company continues to see strength on retention and order frequency for the consumer cohorts, both those cohorts that were acquired this year compared to new cohort the company had pre-COVID and retention order frequency benefits for existing cohorts that were acquired prior to the pandemic. The company’s one of the priorities is to become an international company and will expand, in an economically efficient manner in other geographies.

DASH in the second quarter of FY 21 has reported the adjusted loss per share of 30 cents, missing the analysts’ estimates for the adjusted loss per share of 20 cents. The company had reported the adjusted revenue growth of 83 percent to $1.24 billion in the second quarter of FY 21, beating the analysts’ estimates for revenue of $1.08 billion, according to IBES data from Refinitiv. In Q2 2021, Total Orders 69% Y/Y to 345 million driven by increased average order frequency, new consumer growth, and growth in Drive orders. Q2 2021 Marketplace GOV increased 70% Y/Y to $10.5 billion.

The company expects full-year marketplace gross order value, a metric measuring the total value of all app orders and subscription fees, to be in the range of $39 billion and $40.5 billion. It had forecast $35 billion to $38 billion earlier. The company expects 2021 Adjusted EBITDA to be in a range of $150 million to $350 million.

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