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Illustration: Aïda Amer/Axios

Both DoorDash and Airbnb beat analyst revenue expectations on Thursday in their first quarter as public companies. Both also have significant losses, which they attribute mostly to IPO-related costs and stock-based compensation.

Why it matters: The two companies became Silicon Valley darlings amid the pandemic as they capitalized on resulting consumer trends.

Yes, but: The companies will likely face different worlds and trends as the pandemic gets under control and more normal life resumes.

  • Food delivery could be impacted by a return to restaurant dining. In California, DoorDash now faces new costs related to Prop. 22, which passed in November.
  • In an interview with Axios Re:Cap, DoorDash CEO Tony Xu said that even back in May-June when states like Texas, Georgia and Florida eased restrictions on restaurants, the company's business continued to grow.
  • "If you looked at Australia, for example, certain cities like Melbourne actually were even more fully recovered ... and there you saw maybe a 20% drop from the COVID-19 highs in terms of our business," he added.

Meanwhile, Airbnb is readying for a rebound in travel. "In 2021, people ... said they miss travel more than any other out-of-home activity," Airbnb CEO Brian Chesky told Axios Re:Cap.

  • "More than 50% of people said this year, they intend to travel, or they're already planning to travel ... they will travel as soon as they feel safe to do so."
  • However, Chesky also said it's unclear exactly when the big rebound will happen.

By the numbers:

  • Airbnb revenue: $859 million compared to $748 million expected, per Refinitiv. Revenue is down 22% year-over-year.
  • Airbnb loss: net loss of $3.89 billion, compared to $352 million in the year-ago quarter, and a $11.24 loss per share.
  • DoorDash revenue: $970 million compared to $938 million expected, per Refinitiv. Revenue is up 226% year-over-year.
  • DoorDash loss: net loss of $312 million, compared to $134 million in the year-ago quarter, and a $2.67 loss per share.

Airbnb's stock price briefly jumped to nearly $190 in after-hours trading, but is now just under where it closed at $180.06. Meanwhile DoorDash's stock price is down about 13% from its closing price of $166.87.

Editor's note: The story has been updated with comments from DoorDash CEO Tony Xu and Airbnb CEO Brian Chesky.

Go deeper

DoorDash says delivery drivers are earning more after Prop. 22

Illustration: Sarah Grillo/Axios

Food delivery company DoorDash says that in January, its couriers in California netted on average 30% more in hourly earnings than they did in 2020 prior to the passage of Prop. 22 in November.

Why it matters: Much of the companies' pitch to voters was that Prop. 22 — which allowed gig economy firms to treat workers as contractors rather than employees — would translate to higher earnings for workers, but has faced skepticism from some drivers and critics of the industry.

New delivery fees hit Twin Cities customers

New fee alerts on DoorDash (left) and UberEats (right). Photos: Doordash/UberEats

At least two major food delivery apps have added new fees for customers in the Twin Cities.

Driving the news: DoorDash users might notice a $1.50 "regulatory response fee" added to their total, while UberEats is charging a $1 "temporary local fee." The increases come after Minneapolis and St. Paul temporarily capped what the companies can charge restaurants for using the platform.

Dan Primack, author of Pro Rata
Feb 25, 2021 - Economy & Business

Coinbase files to go public via direct listing

Illustration: Sarah Grillo/Axios

Cryptocurrency exchange Coinbase on Thursday filed to go public via a direct listing. It includes a placeholder figure of $1 billion, but that's likely to change.

Why it matters: Coinbase could go public at a higher initial valuation than any other U.S. tech company since Facebook.

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