"DoorDash said in March it would offer extra compensation to U.S. and Canadian drivers as part of a temporary program to offset a sharp increase in gas prices due to the Iran war. The national average for a gallon of gas on Wednesday was $4.53, up 44% from a year ago, according to AAA. DoorDash said it is paying for gas price relief by adjusting investments in other areas, including changes to planned spending for new products and services."
"DoorDash said demand for deliveries remained strong in the January-March period despite higher gas prices, with total orders rising 27% to 933 million. That fell short of Wall Street's forecast of 954 million, according to analysts polled by FactSet. DoorDash said winter storms closed businesses and dampened demand in some locations. Revenue also fell short of expectations, rising 33% to $4.0 billion versus $4.15 billion analysts were forecasting."
""We did have to push out some investments ... in order to make room for this," DoorDash Chief Financial Officer Ravi Inukonda said during a conference call with investors. "If we do decide to extend the program, our goal is to find offsets." DoorDash said in November it would be spending heavily on new products and services this year, including the addition of restaurant reservations in its app and robot deliveries."
"DoorDash said its net income fell 5% to $184 million, or 42 cents per share, for the January-March period. That was partly due to a 30% increase in research and development costs compared to the same period last year. Still, that beat analysts' forecast of a 36-cent per share profit, according to FactSet. DoorDash's shares rose more than 11% in after hours trading Wednesday."
DoorDash announced a temporary program to provide extra compensation to U.S. and Canadian drivers to offset a sharp increase in gas prices tied to the Iran war. The national average gas price reached $4.53 per gallon, up 44% from a year earlier. Delivery demand remained strong from January through March, with total orders rising 27% to 933 million, though this was below analysts’ expectations. Revenue increased 33% to $4.0 billion, also below forecasts. DoorDash said it funded gas relief by adjusting investments, including delaying some planned spending. Net income fell 5% to $184 million, while research and development costs rose 30%. Shares rose more than 11% after hours.
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