DoorDash (NASDAQ:DASH) is a San Fransisco-based company that operates a commerce platform that connects merchants, consumers, and independent contractors in the United States and around the world. Shares of DoorDash have dropped 7.3% month-over-month as of close on Wednesday, May 1, 2024. What is behind the stock’s recent volatility? Is it worth buying on the dip? Let’s jump in.
This company released its first quarter (Q1) fiscal 2024 earnings on the same day - Wednesday, May 1. To kick off the earnings report, DoorDash boasted that Total Orders, marketplace GOV, and revenue reached record levels while the company also managed to improve its net loss. The value of Total Orders reached $620 million in Q1 2024 – up from $512 million in the prior year.
DoorDash reported total revenue of $2.51 billion, which was up from $2.03 billion in Q1 fiscal 2023. EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It aims to provide a more accurate measure of a company’s profitability. In Q1 2024, DoorDash reported adjusted EBITDA of $371 million – up from $204 million in Q1 fiscal 2023.
Looking ahead to the second quarter of fiscal 2024, DoorDash is now projecting Marketplace GOV between $19.0 billion and $19.4 billion and adjusted EBITDA between $325 million and $425 million. DoorDash stock is trading in favourable value territory compared to its industry peers at the time of this writing. It also boasts an immaculate balance sheet.
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