Food-delivery company DoorDash Inc's loss widened more than expected in the second quarter as the US upstart spent heavily to expand internationally and into a crowded market for grocery during the pandemic.
It said on Thursday that its total expenses more than doubled to $1.34 billion, overshadowing a surge in revenue and sending its shares down 5% in extended trading.
Demand for delivery of essentials continues to rise during the health crisis, causing DoorDash to sign new partnerships with pet specialty retailer PetSmart Inc, grocer Albertsons Inc and plant-based meat maker Beyond Meat Inc.
The company has also expanded outside its core market of the United States by expanding to Canada, Australia and Japan.
While that helped the company beat growth expectations with an 83% surge to $1.24 billion, its loss of 30 cents per share was wider than a Refinitive IBES estimate of 20 cents loss.
The company said it expects full-year gross order value - A metric measuring the total value of all app orders and subscription fees - between $39 billion and $40.5 billion. It had forecast $35 billion to $38 billion before.
It also raised its outlook for core earnings.