On-demand food delivery company DoorDash has unveiled its latest earnings results for the first quarter of 2021, and the results indicate a strong outlook for the company in a favorable food delivery market.

In Q1 ending March 31, 2021, DoorDash tripled its revenue year-over-year. It’s a testament to a very strong on-demand food delivery market that was spurred by the pandemic even though that heightened demand is expected to cool down as things return back to normal.

By the numbers:

• DoorDash reported $1.08bn in revenue in the quarter, compared to $362mn a year ago. It’s a slight boost from $970mn in revenue reported in the previous quarter preceding this one.

• DoorDash wasn’t profitable in the quarter. It reported a $110mn net loss, slightly down from $129mn a year ago.

Highlights:

• In Q1, DoorDash highlighted $31mn in lost potential revenue due to price controls imposed on restaurants by different municipalities across the US. The price controls were on the fees charged to restaurants by delivery providers like DoorDash.

• DoorDash has begun expanding beyond restaurants into delivering pet supplies, flowers, convenience store products, and groceries. Orders from these newer categories grew 40% in Q1 compared to the prior quarter.

• As the restrictions on in-person dining imposed by many states get phased out, DoorDash rightly forecasts that more people will pick that option and thus negatively impact its new customer growth. 

• In its latest earnings report, DoorDash increased its 2021 forecast for gross order value to between $35bn and $38bn, up from a prior range of $30bn to $33bn. Its EBITDA forecast was also increased from $0 to $200mn to $0 to $300mn.

• DoorDash (NYSE: DASH) has a current market cap of $46bn.

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