DoorDash and Airbnb IPO Twins Show Strong Q1 Results

The Most Important Thing

risk is largely a matter of opinion

D J

·5 years ago

shared a poll post in group #The Most Important Thing

THE IPO TWINS: DOORDASH AND AIRBNB
starting to look attractive at these levels - who ya got?


DoorDash and Airbnb went public the same week last December, putting them on a similar corporate calendar. They both reported first-quarter numbers today and both reported better-than-expected results.

That’s surprising given that they should be on opposite sides of the post-Covid recovery. DoorDash had a staggeringly strong growth last year, as Covid lockdowns made it a must-have service, while Airbnb had the opposite experience. As Covid winds down in parts of the world, including the U.S., you would think those performances would reverse. Instead, both companies seem to be doing just fine.

DoorDash posted growth of 198%, nearly as fast as for all of last year. Meanwhile, it generated $112 million in cash, a big turnaround from the $100 million it burned in the fourth quarter, suggesting it is becoming more efficient. 
Airbnb managed to increase revenue 5% to $886.9 million, a striking turnaround from the 22% drop in the fourth quarter. It shows how much the vaccine rollout in wealthy nations has helped spur a recovery in travel. Almost as stunning was that Airbnb generated just under $490 million in cash, compared to burning $147 million in the fourth quarter of last year.

Nikolas Kong
I never do bonds

Nikolas Kong
Cause Dalio and Buffett told me not to

D J
INVESTORS PUT IN THEIR DOORDASH ORDERS Judging by the rush on DoorDash stock today, you’d think investors hadn’t eaten in a week. The restaurant-meal delivery service stock soared 22% on Friday, ending a two-week losing streak that took it down to nearly its IPO price. The reason? DoorDash’s strong first-quarter earnings on Thursday suggested it could maintain its growth once the pandemic ends and people can go out to eat. That was the biggest question hanging over the stock for months. So far, so good. Revenue rose nearly 200% in the first quarter, not that far off growth for all of last year. “The impact of reopening really has been more muted than we expected,” DoorDash CEO Tony Xu said on a conference call. Will that last? Lots of people are still nervous about eating out, particularly indoors. DoorDash executives acknowledged the second-half outlook remains uncertain. For now, though, investors seem reassured.

D J cast a vote

Bobby
DoorDash is purchasing Instacart in a roughly $17 billion deal, an acquisition that would make the combined company a constant presence in the lives of shoppers who order groceries and restaurant meals online for home delivery. Instacart went public in 2023 and has lately seen revenue growth slow, kicking off discussions of an acquisition this summer with both Uber and DoorDash. Instacart faces fierce competition in U.S. online grocery sales from Amazon and Walmart. Uber, meanwhile, is a top competitor to DoorDash’s restaurant-delivery business with Uber Eats. Instacart and DoorDash had previously talked about a deal in 2021—but scrapped the talks partly because it did not think the Biden Administration would approve the purchase. That deal would’ve valued DoorDash at more than $40 billion. ir.doordash.com/news/news..
ir.doordash.com
DoorDash to Acquire Instacart to Help Local Stores Win
Transaction values Instacart at $65.00 per share, representing a 26% premium to Instacart's closing price on October 22, 2026 Together, DoorDash and Instacart would help stores of every size reach mor

Embed post to a webpage :

<div data-postid="bybqnb" [...] </div>