DoorDash Misses On Q1 Revenue, Spends $5B On SevenRooms And Deliveroo Acquisitions – Stock Drops Pre-Market
Synopsis
DoorDash announced plans to acquire hospitality software firm SevenRooms for $1.2 billion in cash and agreed to buy U.K.-based Deliveroo for $3.85 billion to expand its European presence.
DoorDash shares fell as much as 4% in premarket trade on Tuesday after the company missed Wall Street’s revenue expectations for the first quarter and announced two major acquisitions to broaden its platform and international reach.
The food delivery company reported adjusted earnings of $0.44 per share for the March quarter, beating analyst expectations of $0.38, according to Koyfin.
Meanwhile, revenue rose 21% year-over-year to $3.03 billion, missing consensus estimates of $3.09 billion.
The company attributed the growth to a 20% increase in Marketplace gross order value to $23.1 billion and an 18% rise in total orders, which reached 732 million in the quarter. Order growth was driven by a larger customer base and higher engagement levels.
Alongside its earnings, DoorDash unveiled plans to acquire SevenRooms, a New York-based hospitality technology firm, for approximately $1.2 billion in cash.
SevenRooms specializes in reservation, seating, and guest engagement software for restaurants, hotels, and entertainment venues. DoorDash said the deal would expand its Commerce Platform and help merchants drive in-store growth and profitability. The acquisition is expected to close in the second half of 2025.
DoorDash also announced a deal to acquire British delivery platform Deliveroo for approximately £2.9 billion ($3.85 billion) to grow its footprint in Europe. The acquisition would give DoorDash access to Deliveroo’s core markets, including the U.K. and Ireland, and position it more strongly against European rivals such as Just Eat and Uber Eats.
Both transactions are subject to regulatory approval. Following the close, DoorDash plans to invest in sales and product development at SevenRooms.
DoorDash’s stock is up more than 20% year-to-date, with gains of nearly 80% over the past 12 months.
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