Doordash announces $1.2 billion SevenRooms acquisition amid revenue miss

On May 6, 2025, in the United States, Doordash announced a $1.2 billion acquisition of the New York City-based restaurant booking platform SevenRooms. This strategic move comes alongside a report of first-quarter financial results, which showed that the company's revenue fell short of analysts' expectations. Specifically, Doordash's revenue for the quarter was $3.03 billion, compared to the anticipated $3.09 billion. Additionally, adjusted earnings per share were reported at 44 cents, surpassing the expected 39 cents, albeit amid a context of declining stock values, as shares dropped approximately 4% following the news of the acquisition. The first-quarter earnings also revealed that Doordash reported a net income of $193 million, a turnaround from a net loss of $23 million in the same quarter a year prior. The company has noted significant growth in order volume, with a total of 732 million orders placed, marking an 18% increase from the previous year's figures. However, this figure was slightly below analysts' predictions, which had anticipated 732.7 million orders. As Doordash engages in acquisitions like SevenRooms, it aims to bolster its services in the competitive local commerce market, which has also seen a rise in grocery delivery requests. Furthermore, the company is preparing for an all-cash acquisition that is projected to finalize in the latter half of 2025. This acquisition, according to Doordash, is expected to enhance their ability to offer world-class services that will support their financial growth goals. The company also addressed potential risks associated with their increased international presence, recognizing challenges such as geopolitical tensions and currency fluctuations. Despite these concerns, Doordash remains optimistic, emphasizing that consumer demand has remained strong and consistent with usual seasonal patterns, suggesting a resilience in their business model amidst market challenges. Looking forward, Doordash's outlook for the second quarter anticipates an adjusted EBITDA ranging between $600 million and $650 million, slightly shy of the $639 million expected by analysts. These insights provide a comprehensive view of the company's current positioning and future trajectory, with an emphasis on strategic growth through acquisitions and expanding market presence, all while navigating the complexities emerging within the global economic landscape.