That represents a mere 3% of its orders - suggesting far more to come from Wolt in the future. In the second quarter, Wolt accounted for 12 million of DoorDash’s total orders, noted CNBC.
Wolt has the potential to contribute much more to DoorDash’s growth.
It's done so while also growing its bottom line.” As CEO Tony Xu told investors, Wolt “has grown to $2.5 billion and annualized gross order value is growing triple digits. Wolt was also growing much faster than DoorDash. Wolt’s platform enables DoorDash to deliver new product categories - including cosmetics and electronics. As I wrote in December, the deal gives DoorDash access to 22 new countries representing 700 million consumers. In June, DoorDash completed its acquisition of Wolt.
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That has helped raise consumer spending and lower delivery costs because drivers can carry multiple orders together.” Geographic Expansion What’s more, by asking customers what else besides food they wanted the company to deliver, DoorDash boosted its revenue per order and lowered its delivery cost per order by 9%.Īs the Journal wrote, “DoorDash expanded its options during the health crisis to include grocery chains and convenience stores, pinging consumers as they paid for food to ask them if they also wanted household items from a nearby store. And despite “a softer consumer spending environment” restaurants have raised menu prices on deliveries - helping to boost DoorDash’s revenue, noted the Journal. Rising Restaurant Prices, Broader Product SelectionĭoorDash’s revenue increases are positive surprises because they defy the conventional wisdom that people are visiting restaurants rather than ordering from delivery services and that they are spending less because their income growth is not keeping pace with inflation.ĭoorDash noted that a contributor to revenue growth was that consumers kept ordering food and household essentials despite restaurant and store reopenings. 2022 adjusted EBITDA forecast increased from a range between $0 and $500 million to between $200 million and $500 million - the midpoint of which exceeds Wall Street’s estimate by $121 million, wrote the Journal.2022 order value forecast increased from a range - the midpoint of which was $50 billion - to $52.5 billion ($170 million more than Wall Street’s forecast), reported Bloomberg.Q2 adjusted EBITDA of $103 million was $47.9 more than analyst expectations, according to Bloomberg.Q2 total orders grew 23% to 426 million - seven million more than Wall Street’s forecast, noted the Journal.Q2 revenue rose 30% to $1.6 billion $80 million more than analysts polled by FactSet expected, according to the Wall Street Journal.
In its June-ending quarter, DoorDash’s revenue, total orders, adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), and 2022 order value and adjusted EBITDA guidance all exceeded analyst expectations. Boffo Second Quarter Results And Guidance (I have no financial interest in the securities mentioned in this post). With a median price target of $100, according to CNN, the stock could rise 11% or more. DoorDash is gaining market share due to its excellent service.DoorDash is newly tapping a 700 million person European market thanks to a recent acquisition.Restaurants are increasing their prices and DoorDash has broadened its product selection.And that makes me think the stock is undervalued for three reasons: Simply put, with declining demand for its services, DoorDash could not beat and raise.īut DoorDash just shed its coils by proving that it could beat and raise despite those headwinds.
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