DoorDash Inc (NASDAQ:DASH) stock fell 5.67% (As on May 7, 11:25:41 AM UTC-4, Source: Google Finance) after the company reported first-quarter earnings that beat analyst expectations, but revenue fell short of estimates. DASH saw strong growth in key metrics during the quarter, with total orders increasing 18% YoY to 732 million and marketplace gross order value (GOV) rising 20% YoY to $23.1 billion. The company also achieved a new quarterly record for GAAP net income at $193 million, up from a loss of $23 million in the same period last year. The company also announced plans to acquire SevenRooms, a hospitality technology firm, for approximately $1.2 billion in cash. This acquisition, expected to be finalized in the second half of 2025, aims to enhance DoorDash’s Commerce Platform by integrating SevenRooms’ customer relationship management (CRM) and guest experience tools to help merchants increase in-store sales and profitability. Additionally, DoorDash has made a formal offer to acquire Deliveroo for £2.9 billion, subject to regulatory approvals and other conditions.

DASH in the first quarter of FY25 has reported the adjusted earnings per share of 44 cents, beating the analysts’ estimates for the adjusted earnings per share of 40 cents. The company had reported the adjusted revenue growth of 21 percent to $3.03 billion in the first quarter of FY25, missing the analysts’ estimates for revenue of $3.08 billion. Net Revenue Margin remained flat Y/Y at 13.1%. Adjusted EBITDA increased to $590 million from $371 million in Q1 2024.

Moreover, the company made meaningful progress in several areas in Q1 2025, including improving the offerings in the U.S. restaurant category, expanding the ability to serve multiple categories, broadening the geographic reach, growing the value proposition of the membership programs, and increasing the number of ways the company help merchants build and grow their businesses. In the U.S. Marketplace in Q1 2025, the company expanded selection, reduced defect rates, lowered average delivery times, and improved personalization. This helped the company drive year-over-year (Y/Y) growth in U.S. MAUs in March 2025 that was consistent with Y/Y growth in December 2024. Y/Y growth in DashPass and Wolt+ members exiting Q1 2025 accelerated slightly compared to Y/Y growth exiting Q4.

For the second quarter, DoorDash expects marketplace GOV between $23.3 billion and $23.7 billion, with adjusted EBITDA ranging from $600 million to $650 million.