(Reuters) – DoorDash Inc showed a surge in revenue growth in 2020 and reported a quarterly profit for the first time in its IPO filing on Friday, as the U.S. food delivery startup prepares for what is set to be one of the year’s most high-profile market debuts.
The move to go public by DoorDash, which competes with Uber Eats, GrubHub Inc and Postmates Inc, follows a surge in demand for food delivery services during the COVID-19 lockdowns earlier this year.
In its IPO filing, DoorDash reported revenue of $1.92 billion for the first nine months of 2020, up more than three times from the same period a year earlier. The company reported a profit of $23 million for the first time in its history during the second quarter of 2020.
DoorDash, however, said the sudden surge in business activity this year had revealed “material weakness” in its financial reporting, such as inadequate accounting processes and lack of technical expertise.
In response the company said it is hiring additional accounting, engineering and business intelligence personnel, as well as conducting a review.
The startup currently has about $1.6 billion of cash and a $300 million credit facility, that will increase to $400 million after the IPO.