DoorDash sees record orders and revenue in second quarter even as US restaurant traffic slows

Core Viewpoint - DoorDash achieved record orders and revenue in the second quarter of 2024, despite a decline in U.S. restaurant traffic, indicating strong performance in the delivery sector [1][2]. Company Performance - Total orders increased by 19% to 635 million, surpassing Wall Street's expectation of 625 million [2]. - Revenue rose by 23% to $2.6 billion, exceeding the forecast of$2.5 billion [2]. - The company's stock price jumped 11% in after-hours trading following the earnings report [2]. Industry Context - U.S. restaurant demand has weakened, with a reported 2.6% decline in restaurant traffic in the first half of the year [3]. - Major competitors like McDonald's and Starbucks have also reported declines in same-store sales and quarterly revenue, respectively [3]. Management Insights - DoorDash's CEO, Tony Xu, noted that the company is not experiencing the same slowdown as traditional restaurants, with growth in digital and delivery sales [4]. - The company continues to enhance customer experience through lower delivery fees and improved app personalization [5]. Expansion and Diversification - DoorDash is expanding its service offerings beyond restaurant food, partnering with retailers like Ulta Beauty and Lowe's, and delivering a variety of products [6]. - The company aims to represent every city digitally by including a wide range of merchants [7]. Financial Outlook - DoorDash narrowed its net loss to $158 million, or 38 cents per share, which was worse than analysts' expectations of a 9 cents per share loss [7]. - Analysts are forecasting a potential net profit for the third quarter, with expected per-share earnings of 9 cents [8].