Bernstein U.S. Emerging Internet Research Analyst Nikhil Devnani joins Yahoo Finance Live to break down DoorDash's Q4 earnings report amid news of its president-COO planning to retire and consumer sentiment.

Video Transcript

SEANA SMITH: Shares of DoorDash here are trading higher up just about 5 and 1/2% after the company posted results that were actually pretty impressive here, at least to the street. Revenue up 40% on a year-over-year basis to 1.82 billion. Orders also rising 27% from a year ago to 467 million. Let's talk about it, what this means here, for the company going forward. And for that, we want to bring in our guest here.

We have Nikhil Devnani, a Bernstein US Emerging Internet Research analyst. Nikhil, it's great to have you here. So first, just your reaction to these results. We also got a new president, new COO, and a new CFO. So two new changes in the executive suite as well.

NIKHIL DEVNANI: Yeah, absolutely. And first off, thanks for having me on. I think the initial reaction is that overall, results were pretty solid. What you see is that this business continues to hum along and grow at a pretty steady pace. You mentioned it there with the order growth. That top line is growing North of 20% on an organic basis, which is not something a lot of people would have expected when you kind of rewind several months, and everyone had fears around what the post-COVID world would do to this category of consumer spending.

And turns out consumers continue to really like the service. They added more customers, they added more DashPass subscribers. So I think increasingly, food delivery is becoming more and more of a habit for the average American. And I think the other factor here too, what everyone wants to see in this market, is really profit margins expand. And they gave us the hope of that as well with their 2023 outlook, pointing to growth and adjusted EBITDA, a little bit ahead of where the street was coming out. And so that was really nice to see as well.