A DoorDash sign is pictured on a restaurant on the day they hold their IPO in New York, December 9, 2020.
Carlo Allegri | Reuters
DoorDash announced Tuesday it’s acquiring Wolt, a food delivery platform that’s expanded into groceries and retail, in an all-stock transaction that’s valued at $8.1 billion.
The move is an effort to accelerate the company’s international growth. Shares of DoorDash gained about 1.5% in after-hours trading after an initial dip.
Wolt currently has about 4,000 employees and operates in 23 countries, the company said in a release. In January, the company said it surpassed 10 million users.
Upon closing, Miki Kuusi, current Wolt CEO and founder, will run DoorDash International. The deal is expected to close in the second half of 2022.
The announcement came as part of DoorDash’s third-quarter earnings report.
Here are the key numbers:
- Loss: 30 cents vs 26 cents expected in a Refinitiv survey of analysts
- Revenue: $1.28 billion vs $1.18 billion expected
DoorDash reported a net loss of $101 million. That’s more than double its loss of $43 million in the same quarter of 2020.
DoorDash was one of the benefactors of stay-at-home trends as people relied heavily on food delivery services while taking precautions to minimize the spread of Covid-19.
The company said that the number of new consumers acquired in the quarter was down compared to peak levels in 2020. But that still remains “well above” levels in 2019 and prior years, it added. Total orders were up 47% to 347 million.
And consumers were spending more on orders during the quarter. Marketplace gross order value jumped 44% to $10.4 billion. DoorDash said it expects a range of $10.3 billion to $10.7 billion in the fourth quarter.
Over 3 million people provided services, or “dashed,” in the quarter to earn more than $2.8 billion. The company also reported 500,000 partner merchants, saying it continues to add at a “pace that is faster than pre-pandemic levels.”
Adjusted EBITDA reached $86 million in the quarter, a decrease of 24% compared to Q2. The company anticipates a range of $0 million to $100 million in the fourth quarter.