DoorDash shares slide as Q1 profit disappoints following two multibillion-dollar acquisitions
Published: 09:38 06 May 2025 EDT
Shares of DoorDash Inc (NYSE:DASH) fell about 8% on Tuesday morning in New York after the food delivery company posted a quarterly profit that missed some investors' expectations on margins.
The company reported first-quarter adjusted EBITDA of $590 million, up from $371 million a year earlier but below some buyside hopes, despite surpassing analyst consensus estimates.
DoorDash’s revenue rose 23% to $3.03 billion, narrowly missing Wall Street expectations of $3.09 billion.
Total orders reached 732 million, up 18% year-over-year, while gross order value (GOV) climbed 20% to $23.1 billion, reflecting continued strength in consumer demand.
Still, the company achieved record highs in total orders, GOV, revenue, and net income during the quarter, while moving to expand its global reach through acquisitions.
Alongside a previously announced formal offer to buy UK-based Deliveroo, DoorDash said it will acquire New York-based hospitality technology firm SevenRooms in an all-cash deal valued at $1.2 billion.
The acquisition of SevenRooms, a platform used by restaurants for reservation management, guest engagement, and marketing, reflects DoorDash’s broader strategy to diversify its offerings beyond delivery and deepen its relationships with restaurant partners.
The company also offered guidance for the second quarter, forecasting GOV between $23.3 billion and $23.7 billion and adjusted EBITDA between $600 million and $650 million. At the midpoint, the EBITDA forecast is slightly below consensus estimates, according to Jefferies.
Jefferies analysts called the quarter “an impressive GOV beat/raise,” but noted that EBITDA results came in below buy-side expectations.
“The EBITDA shortfall appears largely attributable to lower take rate, driven by investments in affordability and category shift,” they wrote in a note. “We look for additional color on the rationale for the Deliveroo and SevenRooms acquisitions.”
