"The company, which operates in more than 40 countries through its Wolt unit and the recently acquired Deliveroo business, expects to increase investment in Deliveroo to improve the product and maintain growth, it said in a statement Wednesday. It also anticipates spending several hundred million dollars more in 2026 on new products and an internal platform that will help improve operational consistency and product development speed. That will include AI tools to boost developer productivity, DoorDash said."
"The increased costs, and the first addition of Deliveroo's performance to DoorDash's financial outlook, contributed to a muted fourth-quarter forecast for adjusted earnings before interest, taxes, depreciation, and amortization. The company expects adjusted Ebitda to be $710 million to $810 million, while analysts on average projected $802.7 million. The wide guidance range suggests that the Deliveroo acquisition will be a near-term drag on margin, Bloomberg Intelligence analysts wrote in a report after the results."
DoorDash plans to increase investment in Deliveroo to improve the product and maintain growth across its expanded international footprint. The company expects to spend several hundred million dollars more in 2026 on new products and an internal platform to improve operational consistency and speed product development, including AI tools to boost developer productivity. The added costs and inclusion of Deliveroo's performance in guidance led to a muted fourth-quarter adjusted EBITDA forecast of $710 million to $810 million versus analyst expectations around $802.7 million. Shares fell 17% to $196.46, the largest single-day decline since the December 2020 IPO. Analysts expect revenue growth to accelerate above 30% in 2026 driven by Deliveroo. The spending plans overshadowed otherwise strong quarterly metrics such as 25% gross order value growth.
Read at www.mercurynews.com
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