DoorDash (NYSE:DASH) stock is in the spotlight today after the delivery company recently reported higher-than-expected first-quarter revenue and EBITDA. Specifically, the company generated $1.5 billion in Q1 revenue, a jump of 35% year-over-year (YOY). That was higher than analysts’ average outlook of $1.38 billion.
DoorDash’s Q1 EBITDA, excluding some items, came in at $54 million for the period as well. That was above the company’s previous guidance of $0 to $50 million. In the same period the year before, its EBITDA came to $43 million.
Last quarter, DoorDash’s gross order volume (GOV) also climbed 25% YOY to $12.35 billion. For Q2, the company now expects its GOV to be between $12.1 billion and $12.5 billion. In a letter to DASH stock investors, the company had the following to say:
“In the two years from Q1 2020 to Q1 2022, we grew orders in our U.S. Restaurant Marketplace by over 250%, grew category share by 14 percentage points […] and significantly increased Contribution Profit in the category.”
DoorDash added it has a great deal of room to grow when it comes to categories like “restaurants and convenience and grocery stores.” The company believes this is the case because its U.S. share of those overall categories is 5% or lower. It’s also still difficult for retailers to create digital delivery platforms on their own.
Moving forward, the company’s strategy will still focus on investing “cash generated by our U.S. Restaurant Marketplace back into our business in order to build a more holistic platform for local commerce.” As the year continues, DASH stock appears well-positioned to grow over the long term.
DASH stock is in the red today so far, but its Q1 results still make it look promising.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.