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DoorDash Inc., which posted both record revenue and orders in the third quarter as demand for delivery continued, also said Tuesday it is buying Finland food-delivery company Wolt in an all-stock deal worth more than $8 billion.
DoorDash
DASH,
stock, which had been down more than 4% after hours, rose as high as 9% on the news. They had closed 0.6% lower in the regular session, at $192.02.
In a news release, DoorDash said Wolt, which has more than 4,000 employees, has “a leading local commerce platform across 23 countries.” When the deal closes in the first half of next year as expected, Wolt Chief Executive Miki Kuusi will run DoorDash International, reporting to DoorDash CEO Tony Xu.
It is the latest instance of consolidation in the app-based food-delivery industry, which saw demand and company valuations skyrocket at the beginning of the coronavirus pandemic. Last year, European company Just Eat Takeaway announced it was buying Chicago-based Grubhub
GRUB,
and Uber Technologies Inc.
UBER,
said it would acquire Postmates. Both deals have been completed.
See: The pandemic has more than doubled food-delivery apps’ business. Now what?
DoorDash third-quarter revenue rose to $1.3 billion from $879 million in the year-ago quarter. Gross order volume rose to $10.4 billion, beating analysts’ expectation of $9.96 billion, on a total 347 million orders, more than the 334.7 million analysts expected.
The company widened its net loss in the quarter, though, to $101 million, or 30 cents a share, compared with a loss of $43 million, or 96 cents a share, in the year-ago period. Adjusted Ebitda was $86 million, same as the third quarter last year.
Analysts surveyed by FactSet had forecast an adjusted net loss of $84 million, or 10 cents a share, on revenue of $1.17 billion.
DoorDash expects fourth-quarter gross order volume of $10.3 billion to $10.7 billion. Analysts had forecast $10.3 billion. It also expects adjusted Ebitda of $0 to $100 million.
The company’s stock has risen nearly 34% so far this year, while the S&P 500 Index
SPX,
has climbed about 25% year to date.
