DoorDash Announces $1.2 Billion SevenRooms Deal Because It Doesn’t Meet Revenue Expectations

 

·       DoorDash made an announcement of the $1.2 billion all-cash acquisition of restaurant booking platform SevenRooms.

·       Deliveroo, a British food delivery company, also put out a takeover deal from DoorDash worth $3.9 billion.

·       The reported first-quarter revenue of DoorDash fell short of expectations.

With the report of first-quarter revenue falling short of expectations, DoorDash disclosed the $1.2 billion acquisition of restaurant booking platform SevenRooms.

DoorDash’s share tumbled 5% as a result of the news.

Here is how the company did, based on LSEG predictions:

·       Earnings per share: 44 cents vs. 39 cents expected

·       Revenue: $3.03 billion vs. $3.09 billion expected

DoorDash said the all-cash acquisition of SevenRooms, a data platform for restaurants and hotels in New York City to direct booking information, will not remain open at the end of the second half of 2025.

Deliveroo, a British food delivery service, announced Tuesday that it has decided to go along with a takeover offer from DoorDash worth $3.9 billion.

“We want to shore up our ability to boost the world-class services, and SevenRooms and Deliveroo will be playing an important role for us that elevates our capabilities and potential to encourage our financial goals, DoorDash cited in a release.

The first quarter raked in $3.03 billion of revenue, which is up 21% from the year-ago quarter.

DoorDash reported its first quarter received 732 million total orders, which accounts for an 18% increase compared with the same period a year ago. However, analysts polled by StreetAccount predicted 732.7 million.’

The company said its expectation of second-quarter adjusted earnings goes from $600 million to $650 million before interest, taxes, depreciation and amortization. The prediction of $639 million came from Analysts polled by StreetAccount.

Consumer demand has gotten heightened on our marketplace so far in 2025, with encouraging engagement across multiple consumer groups and types that keeps on with typical seasonal patterns, we think, according to the company.

DoorDash’s net income for the first quarter of 2025 is $193 million, or 44 cents per share, according to its report. The company had been plagued with a net loss of $23 million, or a net loss of 6 cents per share, compared with the same quarter in 2024.

DoorDash dug in the grocery delivery category to note its growth, mentioning, “escalating average spend per grocery consumer and spiraling average spend on perishable.”

The tariffs remained unmentioned factor in the financial outlook of DoorDash, but company weighed up that its international business’s hike leaves it open to “geopolitical and currency risks.”