DoorDash Reports Mixed Q1 Results With Strong Grocery Sales But Wider Losses

Despite better-than-expected revenue driven by U.S. grocery segment growth, DoorDash's shares dropped due to increased costs and a wider-than-expected loss.

• DoorDash's Q1 revenue increased by 23% to $2.51 billion, surpassing Wall Street expectations due to strong U.S. grocery sales.
• The company's net loss widened to $23 million, more than the anticipated 3-cent loss per share, as costs rose.
• Shares of DoorDash fell over 12% in premarket trading following the earnings announcement.
• Expansion into grocery and retail delivery aims to counterbalance slowing restaurant demand.
• New minimum wage rules in New York and Seattle have slightly impacted sales but are expected to have a minimal overall effect on business.

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