Shares of DoorDash (NYSE:DASH) stock are up over 10% after the company reported fourth-quarter earnings. A beneficiary from the stay-at-home trend, DoorDash reported revenue of $1.3 billion, slightly beating expectations of $1.28 billion. The revenue figure represents growth of 34% year over year (YOY). Additionally, DoorDash reported a loss of 45 cents per share versus estimates of for a loss of 25 cents. In total, DoorDash received 369 million orders during the quarter, a record-high, beating expectations of 361 million orders by 2%.
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During Q4, the company’s gross order value was up 36% YOY at $11.2 billion, beating estimates of $10.6 billion. For full-year guidance, DoorDash estimates total revenue to fall between $48 billion and $50 billion, which is in line with analysts’ estimates of $49.4 billion.
DoorDash’s subscription program, DashPass, saw impressive growth as well. DashPass members exceeded 10 million during the quarter, and the food delivery company pointed out that “DashPass members have higher retention and order frequency than non-members.”
In a letter to shareholders, DoorDash cautioned that:
“Among other factors, our outlook anticipates continued growth in our U.S. restaurant Marketplace, as well as ongoing investment in new categories, international markets, and Platform Services. We caution investors that significant uncertainty remains around several factors, including: the ongoing COVID pandemic and the impact of labor shortages, inflation, and other macroeconomic factors.”
3 Analysts Weigh In on DASH Stock Price Predictions
- Wolfe Research has a price target of $170. Analyst Deepak Mathivanan lowered his price target from $180 after reviewing Q4 earnings. The analyst added that while “normalcy is slowly returning in many markets,” DoorDash’s delivery demand still remains steady. Furthermore, Mathivanan is upbeat in regards to the company’s long-term initiatives.
- JP Morgan has a price target of $162. Analyst Doug Anmuth lowered his price target from $175 after reviewing earnings. Anmuth believes that the pandemic permanently changed the food-delivery industry, making customers value convenience and selection. Anmuth believes that gross order value (GOV) has room to grow, which should help drive profitability and margins over time. However, the analyst adds that “risk/reward is balanced at current levels.”
- RBC Capital has a price target of $142. Analyst Brad Erickson lowered his price target from $175 after reviewing Q4 earnings. Erickson believes that DoorDash has strong optionality, which should allow it to “expand both categorically and geographically going forward.” Furthermore, the analyst expects to see “occasional declaration” post-Covid, but upside to analyst estimates should allow for further value creation.
- In addition, analysts from Truist Securities, Needham, Susquehanna and Bank of America all lowered their price targets following the release of earnings. However, the lowered price targets are all generously above DoorDash’s current price.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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