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DoorDash continues to lose money and warns that expenses may increase in the future.
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DoorDash Inc. filed paperwork Friday morning for an initial public offering, giving investors a first glimpse into the food-delivery company’s fast revenue growth amid the pandemic and its continued losses.
The company, which said in a prospectus that its mission is “to grow and empower local economies,” intends to trade on the New York Stock Exchange under the ticker “DASH.”
DoorDash generated $1.92 billion in revenue through the first nine months of 2020, compared with $587 million in the same period a year earlier. The company remains in the red, though losses have improved over the past year. DoorDash lost $149 through the first nine months of this year, compared with $534 million in the first nine months of 2019.
DoorDash noted that while it generated net income of $23 million in the latest June quarter, “we have incurred net losses in each year since our founding, we anticipate increasing expenses in the future, and we may not be able to maintain or increase profitability in the future.”
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The company counted 543 million total orders in the first nine months of the year, versus 181 million in the first nine months of 2019. Marketplace gross order value rose to $16.49 billion from $5.54 billion.
DoorDash highlighted that the COVID-19 crisis drove “a significant increase” in revenue, total orders, and marketplace gross order value given growing demand for delivery services, but the company expects that growth rates for these metrics will decline in future periods.
The company said that more than 390,000 merchants completed an order through the DoorDash platform in the month of September, as well as over 18 million consumers. More than one million couriers, which the company calls Dashers, delivered an order through the platform in September.
DoorDash prepares to make its public debut as the Renaissance IPO ETF IPO, +0.91% has gained 78% on the year and as the S&P 500 SPX, +0.75% has risen 9.5%.
