Key Highlights
- First-quarter earnings per share of $0.42 surpassed the $0.36 consensus forecast
- Quarterly revenue of $4.04B fell below the anticipated $4.15B
- Total gross order value reached $31.6B, slightly above the $31.5B projection
- Shares climbed approximately 11% during Thursday’s premarket session
- Second-quarter GOV forecast of $32.4B–$33.4B matches Wall Street expectations
Shares of DoorDash (DASH) rallied approximately 11% during Thursday’s premarket session, climbing to $184.50, following the delivery platform’s first-quarter report that exceeded profit expectations while falling short on the top line.
The food delivery giant reported earnings of $0.42 per share, surpassing Wall Street’s $0.36 projection. However, quarterly revenue reached $4.04 billion, missing the anticipated $4.15 billion target.
The company’s gross order value — representing the aggregate dollar amount of transactions processed through its platform — totaled $31.6 billion, marginally exceeding the $31.5 billion Street forecast and landing within management’s previously communicated range.
Meanwhile, the average order value demonstrated upward momentum, advancing from $31.52 in the first quarter of 2025 to $33.87 in the current period. This reflects a gradual but consistent increase in customer spending behavior.
Management attributed the performance to “continued product improvements and healthy consumer demand trends,” acknowledging that shoppers are still adjusting to an elevated cost landscape.
Second Quarter Outlook: Meets Expectations
Looking ahead to Q2, management projected GOV between $32.4 billion and $33.4 billion, a range that encompasses the Street’s $32.75 billion consensus estimate.
The company’s adjusted EBITDA guidance of $770 million to $870 million landed marginally below the analyst midpoint of $828 million — though the difference wasn’t significant enough to cause concern.
Analysts at Citi highlighted that market participants were particularly watching the GOV outlook, especially considering DoorDash’s continuing $50 million quarterly initiative to offset driver fuel expenses.
Goldman Sachs analyst Eric Sheridan emphasized increasing traction in the DashPass subscription service as an additional positive indicator, fueled by improved conversion rates and reduced subscriber cancellations.
Artificial Intelligence Powers Majority of Code Development
During the earnings conference call, CEO Tony Xu revealed that artificial intelligence now generates nearly two-thirds of DoorDash’s codebase — a disclosure that captured attention despite the focus on financial metrics.
Xu explained the company is leveraging AI-enhanced efficiency as it works toward consolidating acquired properties Wolt and Deliveroo onto a unified technology infrastructure.
“We’re seeing productivity gains, we’re trying to figure out how do productivity gains now translate to what team setups should look like,” Xu said.
He further mentioned that DoorDash is integrating operational strategies from European markets with non-traditional street layouts while combining them with its U.S.-based retail inventory capabilities.
Prior to Thursday’s session, the stock had declined 26% year-to-date, making the premarket surge a notable, though incomplete, reversal.
DoorDash’s first-quarter GOV of $31.6 billion landed within its prior guidance bracket of $31.4 billion to $32.4 billion.
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