DoorDash CEO talks earnings: We want to build the biggest business for the long run
- DoorDash CEO Tony Xu discussed his company's earnings report with CNBC's Jim Cramer
- The delivery service company saw $2.13 billion in second-quarter revenue, higher than the $2.06 billion consensus estimate, according to FactSet.
DoorDash CEO Tony Xu discussed his company's earnings with CNBC's Jim Cramer on Wednesday, highlighting its revenue, which topped Wall Street estimates.
DoorDash, a delivery service company, reported earnings after the bell and posted $2.13 billion in second-quarter revenue, higher than the $2.06 billion analyst consensus estimate, according to FactSet. The company also said its total orders rose 25% to 532 million year over year.
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Xu added the company saw significant losses during the pandemic when it cut commissions for local restaurants struggling to stay in business.
"We cut our commissions by 50%, we were the only platform and service to do so," he said. "I mean, that cost us hundreds, you know, over a $100 million while doing that. And for us, that was a time in which the company wasn't yet producing profits like we are today. To me, it was just the right decision."
The company's net loss narrowed to $172 million during the second quarter from $263 million a year earlier.
Money Report
"I wouldn't call it a pivot," Xu said. "I mean, really, to us, this is, you know, natural growth. We are still on offense, we are still in investment mode, we want to build the biggest sized business for the long run."
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