DoorDash Inc. (DASH) stock surged over 5% in the pre-market trading session on Wednesday, following the company's strong fourth-quarter results. The food delivery giant reported a 25% year-over-year increase in revenue to $2.87 billion, surpassing analyst estimates of $2.84 billion. This impressive performance was driven by a growing user base and higher order frequency.

Highlights from DoorDash's Q4 2024 results include:

• Total orders increased by 19% year-over-year to 685 million, exceeding expectations of 673.04 million.
• Marketplace GOV (Gross Order Value) rose 21% year-over-year to $21.3 billion, higher than the estimated $20.9 billion.
• Monthly Active Users reached an all-time high of 42 million in December 2024, up from 37 million in December 2023.
• The number of DashPass and Wolt+ subscribers grew to over 22 million by the end of 2024, a 22% increase from the previous year.

DoorDash's strong performance can be attributed to its successful expansion into new verticals, such as grocery and retail, and its growing international presence. The company's focus on improving operational efficiency and reinvesting in its business has paid off, allowing it to reach more customers and drive higher engagement.

Looking ahead, DoorDash provided an optimistic outlook for the first quarter of 2025. The company expects Marketplace GOV to be between $22.6 billion and $23 billion, exceeding analyst expectations of $22.4 billion. Additionally, DoorDash announced a $5 billion share repurchase program, reflecting its confidence in future growth prospects and cash flow generation.