The estimates use a fully diluted share count and include proceeds from the offering, which raised $3.37 billion, WSJ reported. The price is above the $90 to $95 threshold DoorDash had been targeting, WSJ reported.
DoorDash was valued earlier this year at over $15 billion, a massive surge from the $1.4 billion it was worth in 2018. The surge came from the new need for mobile delivery services during the pandemic, according to WSJ.
Investors have been wowed by DoorDash’s growth while customers stayed away from restaurants and in-person events, WSJ reported. They’re impressed by the delivery company’s ability to stay on top of the market and show profits.
DoorDash said last month that it only had around 3 percent of the U.S. market, which the company said shows the large potential it has to keep expanding into new markets. The company said the pandemic, despite its adverse effect for many markets, had done well for its own revenues, with 58 percent of adults and 70 percent of millennials saying they were more likely to have food delivered now than two years ago.
In the quarter ending in June, DoorDash posted $23 million in profits over $675 million in revenue, WSJ reported. That did reverse to a net loss in the next quarter, though, even as revenue jumped to $879 million.
If the $102 price happens, it could cap a stunning rise in fortunes for the San Francisco-based company and mark more success in the IPO market amid the pandemic’s economic strife, according to WSJ. The IPO market has been quiet in December in years past, but this year it looks to be bustling.