DoorDash earnings beat estimates, acquires Instacart for $17 billion

DoorDash reported third-quarter results that exceeded analyst expectations and announced a definitive agreement to acquire Instacart for approximately $17 billion in cash and stock.

The company posted adjusted earnings per share of $1.06, beating the analyst consensus of $0.82 by $0.24. Revenue reached $4.61 billion, surpassing the estimate of $4.56 billion. Instacart, which will be acquired by DoorDash, reported gross transaction value of $10.53 billion for its third quarter, up 15% YoY, with total revenue of $1.10 billion, up 17% YoY.

Shares of DoorDash rose 6.5% following the announcement.

"Q3 was our best quarter as a public company, with GTV up 15% year-over-year and advertising and other revenue up 23% year-over-year," said Chris Rogers, Instacart's CEO. "Our fundamentals keep getting stronger, with solid consumer demand, deepening customer engagement, and expanding profitability."

Instacart's third-quarter performance showed orders of 91.4 million, up 10% YoY. Transaction revenue reached $764 million, up 14% YoY, while advertising and other revenue totaled $331 million, up 23% YoY. The company reported GAAP net income of $147 million, up 2% YoY, and adjusted EBITDA of $342 million, up 23% YoY.

Operating cash flow came in at $324 million, up 13% YoY, and free cash flow reached $307 million, also up 13% YoY. The company repurchased $230 million in shares during the quarter and ended with $1 billion in cash and similar assets.