DoorDash sales soared in the first quarter as the company added more customers. That was the good news.
However, it was a costly quarter as the company's loss widened to $167 million, from $110 million in the same period a year ago, as DoorDash spent more on stock-based compensation and marketing costs.
DoorDash said it lost 48 cents per share in the quarter, more than double the 21 cent loss Wall Street forecast.
Revenue jumped 35% to $1.46 billion, topping the forecast of $1.38 billion, according to analysts polled by FactSet.
Total orders grew 23% to 404 million, also topping analysts’ expectations.
In all, those measurements boosted shares 8% in after-hours trading.
But DoorDash CEO Tony Xu said it turns out that dining out, and ordering delivery are complementary, and Americans are doing a lot of both.
"People are not substituting eating in with eating out," Xu said.
To help with fuel costs, drivers have been offered 10% cash back on their gas purchases through August.
The Associated Press contributed to this report.