DoorDash amps its IPO range ahead of blockbuster IPO – ProWellTech
Investors have not lost their appetite for growth stocks
DoorDash presented a new one S-1 / A, providing the market with a new price range for its upcoming IPO.
The American food delivery unicorn now plans to debut at $ 90 to $ 95 per share, up from a previous range of $ 75 to $ 85. That’s a 20% increase at the low end and 12% at the high end. of its IPO range.
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DoorDash it still expects 317,656,521 shares outstanding after its IPO, giving the company a new undiluted valuation range of $ 28.6 billion to $ 30.2 billion. On a fully diluted basis, the company’s valuation rises to over $ 35 billion.
For the on-demand giant, the update is hugely positive news. Not only will its valuation extend even further above its most recent private price – around $ 16 billion, set this summer – but DoorDash will also raise more money than previously anticipated. That war chest will be welcome when a vaccine is widely available and food consumption habits may change.
DoorDash will raise up to $ 3.135 billion in its IPO, according to the filing.
After reflecting on the company’s updated valuation from its new SEC filing, I have decided that there are three things worth recalling and discussing. We go into them.
It’s Friday, so to make our analysis as simple as possible I’ve broken it down into discrete sections for your reading. Here we go!
A path to profitability is important
The most profitable quarters of DoorDash that we are aware of were the two most recent. During the June 30 quarter, the company reported a positive net profit of $ 23 million on revenues of $ 675 million. In the September 30 quarter, on the back of even greater revenue growth, DoorDash lost a modest $ 42 million versus $ 879 million on the top line.
These two quarters stand in contrast to the first quarter of 2020, when DoorDash lost a whopping $ 129 million against a much lower revenue result of $ 362 million, and the fourth quarter of 2019 when the figures were a loss of $ 134 million. dollars and revenues of only $ 298 million.