DoorDash’s stock experienced a significant decline late Wednesday, plummeting as much as 19% following the announcement of its third-quarter earnings. The delivery service reported adjusted earnings per share of $0.55, which fell short of analysts’ expectations that had set the benchmark at $0.68, according to data from Bloomberg.
However, the company did exceed revenue projections, bringing in $3.45 billion—higher than the forecasted $3.36 billion. Moreover, key performance indicators indicated strength in certain areas; total order volumes surged to 776 million, surpassing Wall Street’s expectations by 5 million. Additionally, the marketplace gross order value (GOV), which represents the total dollar value of orders processed, reached $25.02 billion, exceeding the projected $24.58 billion. This figure also surpassed DoorDash’s previous quarterly guidance range of $24.2 billion to $24.7 billion.
Looking ahead, DoorDash projected that its adjusted EBITDA for the fourth quarter would range between $710 million and $810 million, which is relatively consistent with the $754 million reported in the previous quarter. The company also provided an optimistic outlook for marketplace GOV, forecasting it to fall between $28.9 billion and $29.5 billion.
In its earnings release, DoorDash highlighted significant growth in monthly active users during the first nine months of the year compared to the same period in 2024. The U.S. restaurant category demonstrated year-over-year growth in marketplace GOV, while the company expanded partnerships in multiple sectors, including grocery, retail, alcohol, floral, pet supplies, gifting, and convenience stores. These expansions led to heightened user engagement.
The drop in DoorDash’s stock is part of a broader trend impacting restaurant stocks this year, marked by ongoing consumer stress and a tendency for customers to prioritize value amid tightening household budgets. Prior to the earnings report, DoorDash shares had gained approximately 40% in 2023, indicating a volatile market landscape.
