DoorDash Surges 12.3% in Pre-Market Trading Following Deliveroo Acquisition and Strong Q1 Revenue Growth

Deep News
02/19

The food delivery application anticipates a deceleration in profit growth for the first quarter, partly attributed to investments related to Deliveroo. DoorDash reported a 38% increase in revenue, reaching $3.955 billion, partially benefiting from the acquisition of the UK-based delivery firm Deliveroo during the quarter. The company projects a 37% rise in total order volume for the first quarter, slightly lower than the growth rate seen in the fourth quarter. Following the announcement, DoorDash's stock price increased by 12.3% in pre-market trading. DoorDash also announced a 38% growth in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). However, it forecasts a slowdown in EBITDA growth for the current first quarter. This is partly due to expenditures associated with the Deliveroo acquisition and partly due to the impact of winter storms in the United States.

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