DoorDash stock gained late Wednesday after the food-delivery company reported second-quarter results that beat expectations. DoorDash also guided for stronger-than-expected order volume for the current quarter.
The San Francisco-based DoorDash reported earnings of 65 cents per share, compared with a loss of 38 cents per share a year ago. Analysts polled by FactSet were forecasting earnings per share of 44 cents. Revenue increased 25% to $3.28 billion, compared with analyst estimates of $3.16 billion.
Marketplace gross order value, which represents the value of all orders completed through DoorDash, increased 23% to $24.2 billion. That beat analyst expectations of $23.6 billion.
The GOV growth marked an acceleration from the 20% rise in the first quarter. Revenue growth also accelerated from the 21% that DoorDash posted in Q1.
DoorDash said the quarter showed "notable strength" in U.S. restaurant ordering. Growth for the DashPass rewards offering contributed to an increased average order frequency, the company added in its earnings report.
Total orders increased 20% year-over-year to 761 million.
For the current quarter, DoorDash guided for gross order value of $24.45 billion, based on the midpoint of its range. Analysts were looking for $23.83 billion in gross order value in the September-ended period, according to FactSet.
On the stock market today, DoorDash stock is up nearly 5% at 270.50.
DoorDash Stock Up 54% This Year
The results appear set to extend a strong rally for DoorDash stock. Shares have gained 54% this year and 110% in the past 12 months.
DoorDash has been boosted by steady revenue growth as what analysts call the "convenience economy" is proving its staying power.
Coming into the report, DoorDash stock had a best-possible IBD Composite Rating of 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
