DoorDash (NASDAQ:) reported blended outcomes for the fiscal first quarter, sending its shares tumbling 13% in premarket buying and selling Thursday.
The supply agency posted Q1 loss per share of $0.06, wider than the consensus estimate of $0.03. However, the corporate outperformed on income fronts, posting $2.51 billion towards a consensus estimate of $2.45 billion.
Looking forward to Q2, DoorDash initiatives its Marketplace Gross Order Value (GOV) to vary between $19.0 billion and $19.4 billion.
The firm additionally forecasts an Adjusted EBITDA between $325 million and $425 million.
For the total 12 months 2024, DoorDash anticipates stock-based compensation to be between $1.1 billion and $1.2 billion.
It additionally expects to challenge between 6.0 million and seven.0 million restricted inventory items (RSUs), adjusted for anticipated forfeitures.
In addition, depreciation and amortization bills are estimated to fall between $560 million and $590 million, assuming the inventory worth stays aligned with current buying and selling ranges.
Despite blended outcomes, analysts at Goldman Sachs remained considerably optimistic about DASH’s future prospects.
“Unless a marked macro slowdown plays out in the coming quarters, we continue to believe the broader landscape for a platform (such as DASH) to widen its value proposition into local commerce presents tailwinds to growth,” analysts wrote.
Short-term, analysts at Goldman Sachs anticipate that investor discussions will consider the stability between Gross Order Value (GOV) progress and adjusted EBITDA margin development over the subsequent 6-12 months.
But for the long term, they view DASH as a dominant market spanning a number of product classes, with growing market share and international scale “which should continue to compound profits in the coming years,” analysts wrote, reiterating a Neutral ranking on the inventory and lifting the goal worth from $122 to $131.
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Meanwhile, analysts at Mizuho mentioned that strong GOV execution above consensus forecasts is a optimistic indicator for DASH’s second half of 2024, because it beneficial properties scale and improves working leverage.
This confidence is bolstered by the corporate’s confirmed observe document of EBITDA will increase in fiscal years 2022 and 2023, supporting expectations for the same upward trajectory within the latter half of this 12 months.