DoorDash (NASDAQ:) reported mixed results for its fiscal first quarter, causing its shares to fall 13% in premarket trading Thursday.
The supplier reported first-quarter loss per share of $0.06, beating the consensus estimate of $0.03. However, the company beat revenues, recording $2.51 billion versus the consensus estimate of $2.45 billion.
Looking ahead to the second quarter, DoorDash forecasts gross order value (GOV) to be between $19.0 billion and $19.4 billion.
The company also forecast adjusted EBITDA in the range of $325 million to $425 million.
For the full year 2024, DoorDash expects stock compensation to be between $1.1 billion and $1.2 billion.
It also plans to issue between 6.0 and 7.0 million restricted stock units (RSUs), adjusted for expected forfeitures.
Additionally, depreciation and amortization expense is estimated to fall between $560 million and $590 million, assuming the share price remains at recent trading levels.
Despite the mixed results, Goldman Sachs analysts remain somewhat optimistic about DASH’s future prospects.
“Unless there is a noticeable macro slowdown in the coming quarters, we continue to believe that the broader landscape for a platform (such as DASH) to expand its value proposition into local trading represents a tailwind for growth,” the analysts wrote.
In the short term, Goldman Sachs analysts expect investor discussions to focus on the balance between gross order value (GOV) growth and adjusted EBITDA margin growth over the next 6-12 months.
But over the long term, they view DASH as a dominant market across multiple product categories, with growing market share and global scale “that should continue to drive earnings in the coming years,” the analysts wrote, reaffirming a neutral rating on the stock and raising their price target to $122 to $131. .
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Meanwhile, Mizuho analysts said the government’s sustained execution, exceeding consensus forecasts, is a positive indicator for DASH in the second half of 2024 as it gains scale and improves operating leverage.
This confidence is supported by the company’s proven track record of growing EBITDA in fiscal 2022 and 2023, supporting expectations of similar growth in the second half of this year.