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DoorDash sees strong quarterly growth in sales and orders but warns of big costs
Yahoo Finance· 2026-02-18 21:17
Core Insights - DoorDash's stock increased by 13% in premarket trading following a 38% revenue growth in Q4, driven by new U.S. customers and additional services like restaurant reservations [1] Financial Performance - DoorDash reported a net income increase of 51% to $213 million, or 49 cents per share, which was below the expected 59 cents [5] - The company's revenue for the October-December period was $3.96 billion, slightly lower than the anticipated $3.99 billion [5] - Total orders rose by 32% to 903 million, surpassing the forecast of 884.8 million [7] Future Outlook - The company anticipates adjusted pretax earnings between $675 million and $775 million for Q1, which is lower than the $800.6 million expected by analysts [4] - CEO Tony Xu indicated that the development of a unified tech platform is a significant and costly project, expected to be mostly completed this year [2][3] Investment and Costs - DoorDash has made substantial investments in various projects, including autonomous robot and drone delivery, leading to a 41% increase in R&D costs and a 31% rise in sales and marketing expenses during Q4 [4] User Engagement - The company reported over 56 million active users in the quarter, with 35 million subscribing to its DashPass, Wolt+, and Deliveroo Plus programs [7] - There is a growing trend of customers using DoorDash for larger grocery orders, particularly on weekends, as evidenced by an expanded partnership with Kroger [8]