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DoorDash Revenue Triples; Cramer Says 'Terrific Quarter'

DoorDash traded higher in after-hours Thursday after its first-quarter revenue tripled and losses narrowed but missed expectations.

Shares of DoorDash  (DASH) - Get DoorDash Inc. Class A Report jumped Thursday after the provider of food delivery services posted better-than-expected first-quarter revenue on a wider-than-expected net loss. 

Shares of the San Francisco, Calif., company rose 6.88% to $123.44 at last check in after-hours trading. 

DoorDash reported a net loss of $110 million, or 34 cents a share compared to a loss of $129 million, or $2.92 a share in the same period a year ago, and missed FactSet produced consensus estimates of a GAAP loss of 26 cents a share.

For the quarter ended March 31, revenue tripled to $1.08 billion from $362 million in the year-ago quarter and ahead of FactSet estimates of $994.3 million.

"Throughout Q1, as markets continued reopening and in-store dining increased across the U.S., the impact to our order volume was smaller than we expected, which contributed to strong performance in the quarter," the top management said in a letter to investors.

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"We believe stimulus checks were partially responsible for this, as their issuance increased consumer demand on our platform at the same time as in-store dining rates accelerated in many markets," DoorDash CEO and co-founder Tony Xu and CFO Prabir Adarkar wrote.

TheStreet founder Jim Cramer said DoorDash had a "terrific quarter and should not be lumped with losers."

Doordash said gross order value in the three months to March grew 222% to $9.9 billion compared to the year-ago quarter. The FactSet analysts had called for Q1 gross order value at $8.97 billion.

DoorDash said its outlook for both Q2 and for the full year "anticipates the successful rollout of COVID-19 vaccines and an associated increase in in-store dining rates, as well as a seasonal decline in order rates associated with the warmer summer months."

DoorDash expects gross order value between $9.4 billion and $9.9 billion for the second quarter and adjusted profits of up to $100 million

For the full year, DoorDash expects gross order value between $35 billion and $38 billion and adjusted profits of up to $300 million.