Strong demand for food delivery in the United States; DoorDash (DASH.US) managed to turnaround from a loss to profit in Q4, with orders exceeding expectations.

After the US stock market closed on Tuesday, the largest food delivery service company in the US, DoorDash (DASH.US), announced its fourth quarter financial report for 2024. The data showed that the company's Q4 revenue increased by 25% year-on-year to $2.9 billion, exceeding market expectations; net profit attributable to common stockholders was $141 million, compared to a loss of $154 million in the same period last year; earnings per share were $0.33, in line with market expectations. DoorDash's total orders in the fourth quarter reached $213 billion, far exceeding analysts' expectations of $209 billion. The company expects total orders in the first quarter of 2025 to reach between $226 billion and $230 billion, also surpassing expectations. The accelerated growth of DoorDash's orders highlights the strong overall demand from US consumers, and Uber Technologies, Inc.'s (UBER.US) performance in the delivery sector last week also exceeded expectations. DoorDash controls two-thirds of the food delivery market in the USalmost three times that of Uber Technologies, Inc.'s Uber Eatsand has been working to expand its services beyond restaurants. However, significant investments in new delivery services and overseas markets have impacted DoorDash's outlook for the current period: the company expects adjusted EBITDA for the first quarter of 2025 to be between $550 million and $600 million, with the midpoint lower than analysts' forecast of $585.4 million. In comparison, adjusted EBITDA for the fourth quarter was $566 million, exceeding Wall Street's expectations. DoorDash's board also approved the repurchase of up to $5 billion of the company's stock, including the remaining $876 million from previous buyback plans. In the quarter from July to September last year, DoorDash achieved its first operating profit since 2020, and investors may closely watch the company's profitability. DoorDash stated in a release: "Entering 2025, we plan to continue focusing on gradually improving operational efficiency and reinvesting in the business to scale and enhance long-term profit potential. We have clear pathways for investment in several areas of our business, and we believe this will enable us to generate significant returns and enhance our value and influence." In recent months, DoorDash has introduced more regional grocery stores, CBD beverages, gummies, and other products on its platform, as well as other retailers like Home Depot, Inc. DoorDash said these improvements drove its monthly active users to reach a historical high of over 42 million in December. The proportion of active users who ordered at least one new product category compared to a year ago has also increased. The company has also launched new initiatives to boost sales and customer loyalty. During the holiday shopping season, the company offered "Black Friday" and "Cyber Monday" discounts to users who ordered from major retailers like Best Buy Co., Inc. and Lowe's Companies, Inc. In October last year, the company partnered with Lyft to offer free rides to DashPass members monthly and free membership to Lyft users. DoorDash stated that as of the end of December last year, including users from its European delivery app Wolt, DoorDash's paid members have exceeded 22 million, with a growth of about 22% from the previous year. As of the time of writing, DoorDash's stock rose nearly 6% after hours.