DoorDash Inc (NASDAQ:DASH) stock fell 13.38% (As on May 2, 11:22:48 AM UTC-4, Source: Google Finance) after the company offered a disappointing profit forecast for the current quarter as the company invests in expanding its list of non-restaurant partners and improving efficiency. Total orders for the first quarter increased 21% to $620 million in the three months ended March 31, exceeding the average analyst estimate of $607.7 million. The gross value of those orders, a key metric for online delivery services, jumped 21% to $19.2 billion. The value of U.S. grocery orders doubled from the same period last year. DoorDash began offering grocery delivery in 2020 and continues to add grocery options. In March, Giant Eagle expanded the number of stores offering same-day DoorDash delivery in Pennsylvania and other states. In April, DoorDash added some West Coast grocers to its offerings, including Haggen and Vallarta Supermarkets. DoorDash said U.S. restaurant order value also grew, but at a slower pace than last year.

Further, DoorDash said new rules in New York and Seattle establishing minimum wage requirements for delivery drivers has increased prices for consumers, resulting in reduced sales. It estimated that the new rules will result in $110 million in lost sales annually for its merchants in New York and $40 million in lost sales in Seattle.

DASH in the first quarter of FY 24 has reported the adjusted loss per share of 6 cents, missing the analysts’ estimates for the adjusted loss per share of 3 cents, according to Factset. The company had reported the adjusted revenue growth of 23 percent to $2.51 billion in the first quarter of FY 24, beating the analysts’ estimates for revenue of $2.45 billion. Net Revenue Margin was 13.1% in Q1 2024, up 27 basis points Y/Y and stable Q/Q. The Y/Y increase in Net Revenue Margin in Q1 2024 was due primarily to an increasing contribution from advertising. Adjusted Gross Profit as a percentage of Marketplace GOV was 6.4% in Q1 2024, up slightly Y/Y and largely stable Q/Q, as improvements in unit economics in the U.S. restaurant marketplace, U.S. new verticals marketplace, and international markets were largely offset by a mix shift in the business to lower margin areas.

DoorDash expects adjusted earnings before interest, tax, deprecation and amortization for the current quarter of $325 million to $425 million, the midpoint of which falls well below the average estimate of $375 million.