DoorDash DASH reported earnings of 33 cents per share in the fourth quarter of 2024, in contrast to the year-ago quarter’s loss of 39 cents. The figure missed the Zacks Consensus Estimate by 2.94%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Revenues increased 24.8% year over year to $2.87 billion and surpassed the consensus mark by 1.34%. The upside was driven by higher Marketplace Gross Order Value (GOV) and growth in advertising revenues.

Following the results, DoorDash shares gained 5.75% in the after-hours trading to $204.20 on Feb. 11, likely driven by strong revenue growth, strong performance in total orders and Marketplace GOV.

DASH’s Quarter in Details

In the fourth quarter, total orders increased 19% year over year to 685 million. The figure beat the Zacks Consensus Estimate by 1.50%.

Marketplace GOV increased 21% year over year to $21.3 billion. The figure beat the consensus estimate by 1.67%.

The adjusted gross profit was $1,472 million, up 31.8% from the year-ago period. The adjusted gross margin expanded 270 basis points (bps) to 51.2%.

The contribution margin was 33.7% compared with 29.9% in the year-ago quarter.

Adjusted sales and marketing expenses rose 17.8% year over year to $504 million.

Adjusted research and development expenses increased 25.8% year over year to $166 million.

Adjusted general and administrative expenses increased 21.6% from the year-ago quarter to $236 million.

Adjusted EBITDA was $566 million compared with the year-ago quarter’s $363 million. The adjusted EBITDA margin expanded 390 bps to 19.7%.

DASH’s Balance Sheet & Cash Flow

As of Dec. 31, 2024, DoorDash had $5.34 billion in cash and cash equivalents, and short-term marketable securities compared with $4.96 billion as of Sept. 30, 2024.

Cash flow from operations was $518 million in the fourth quarter compared with the previous quarter’s $531 million.

The free cash flow was $420 million, lower than the previous quarter’s $444 million.

DASH’s Q1 Guidance

For the first quarter of 2025, DoorDash anticipates Marketplace GOV of $22.6-$23 billion.

Adjusted EBITDA is expected to be $550-$600 million.

Zacks Rank & Other Stocks to Consider

DoorDash currently has a Zacks Rank #2 (Buy).

KT KT, BWX Technologies BWXT and Innodata INOD are some other top-ranked stocks in the broader sector.

KT flaunts a Zacks Rank #1 (Strong Buy) at present, and BWX Technologies and Innodata carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

KT shares have gained 9.2% year to date. KT is set to report its fourth-quarter 2024 results on Feb. 13.

BWX Technologies shares have returned 0.4% year to date. BWXT is set to post fourth-quarter 2024 results on Feb. 24.

Innodata shares have gained 7.5% year to date. INOD is set to report fourth-quarter fiscal 2024 results on Feb. 20.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

KT Corporation (KT) : Free Stock Analysis Report

Innodata Inc. (INOD) : Free Stock Analysis Report

BWX Technologies, Inc. (BWXT) : Free Stock Analysis Report

DoorDash, Inc. (DASH) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research