DoorDash CEO talks earnings with Cramer
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.
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.
"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."
Source: CNBC
