By Rob Curran

DoorDash swung to a first-quarter profit as demand continued to grow for online restaurant and grocery-store orders, and the company also struck a $1.2 billion deal for a maker of reservation software.

The San Francisco food-delivery app maker swung to a profit of $193 million, or 44 cents a share, from a loss of $23 million, or 6 cents a share, a year earlier.

First-quarter revenue surged 21% to $3 billion, just shy of the mean Wall Street target of $3.1 billion, according to FactSet. Cost of revenue rose 13% to $1.5 billion. Net revenue margin, a measure of profitability, was unchanged at 13.1%.

DoorDash said grocery-store delivery orders continued to grow in both volume and average dollar amount, which it said reflected growing trust in its services. A U.S. Department of Agriculture survey conducted in 2022 suggested that one in five Americans shopped for groceries online, and a 2024 Capital One study found that 28% of American adults grocery-shop online at least once per month.

In a good sign for discretionary spending, DoorDash said consumer demand has remained strong, and consistent with seasonal patterns.

Separately, the food-delivery firm said it struck a $1.2 billion cash deal to buy closely held software concern SevenRooms, whose technology helps hotels and restaurants manage reservations. DoorDash expects the acquisition to close in the second half of the year.

That deal came on the heels of DoorDash's agreement to buy London-based food-delivery app Deliveroo, whose distinctive bicycles are ubiquitous on the streets of British cities.

Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

May 06, 2025 07:06 ET (11:06 GMT)

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