$Doordash(DASH.US) ( -7.5% pre-mkt) reported generally in line 1Q results (higher than exp GOV, Orders, and EBITDA, slightly lower than exp Rev, FCF) and guided to stronger than expected 2Q GOV but midpoint EBITDA was below expectations. Stock’s pre-mkt weakness may also reflect two acquisitions $Doordash(DASH.US) announced with results: UK-based online delivery service Deliveroo for $3.8B and Open Table restaurant scheduling competitor Seven Rooms for $1.2B.
1Q Results: - Marketplace GOV $23.1B vs $22.9B est- Revs $3.03B vs $3.1B est- Adj GM 51.9% vs. 50.2% est- Adj Ebitda $590M vs $588.5M est- Orders 732.0M vs 731.86M est- Free cash flow $494M vs $598M est - EPS $.44 vs $.40 est2Q Guidance:- Marketplace GOV $23.3B-$23.7B, vs estimate $23.3B.- Adj Ebitda $600M-$650M, vs est $637MWe would use the weakness as a buying opportunity given DASH’s historical conservative guidance. We view the Deliveroo acquisition as positive since it allows DASH to expand online delivery to Europe. We are neutral on the Seven Rooms deal since the space is far more competitive.The copyright of this article belongs to the original author/organization.
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