Why Is DoorDash (DASH) Up 13.9% Since Last Earnings Report?

Core Viewpoint - DoorDash reported strong third-quarter earnings, with significant year-over-year growth in revenue and orders, indicating positive momentum ahead of its next earnings release [2][3][4]. Financial Performance - Earnings per share for Q3 2024 were 38 cents, compared to a loss of 19 cents in the same quarter last year, exceeding the Zacks Consensus Estimate by 80.95% [2]. - Revenues increased by 25% year-over-year to $2.16 billion, surpassing the consensus estimate by 1.59% [3]. - Total orders rose 18% year-over-year to 643 million, beating the Zacks Consensus Estimate by 0.62% [4]. - Marketplace Gross Order Value (GOV) increased by 19% year-over-year to $20 billion, exceeding the consensus estimate by 1.43% [4]. - Adjusted gross margin improved to 50.9% from 48.7% in the previous year [5]. - Adjusted EBITDA was $533 million, up from $344 million in the year-ago quarter [10]. Expenses - Adjusted sales and marketing expenses rose by 8.2% year-over-year to $447 million [7]. - Adjusted research and development expenses increased by 23.8% year-over-year to $156 million [8]. - Adjusted general and administrative expenses surged by 41.8% year-over-year to $241 million [9]. Balance Sheet and Cash Flow - As of September 30, 2024, DoorDash had $4.96 billion in cash and cash equivalents, up from $4.85 billion as of June 30, 2024 [11]. - Cash flow from operations was $531 million in Q3, slightly higher than the previous quarter [11]. - Free cash flow was $444 million, down from $451 million in the second quarter [12]. Guidance - For Q4, DoorDash anticipates Marketplace GOV to be in the range of $20.6 billion to $21 billion [13]. - Adjusted EBITDA is expected to be between $525 million and $575 million [14]. Market Sentiment - Estimates for DoorDash have trended upward, with a consensus estimate shift of 52.12% [15][16]. - The company holds a Zacks Rank 2 (Buy), indicating expectations for above-average returns in the coming months [18].