By Ananya Mariam Rajesh

(Reuters) – DoorDash forecast fourth-quarter core profit above estimates on Wednesday, as the online delivery firm bets on more consumers using the platform to order groceries to beauty products during the holiday period.

The company also posted a profit for the first time since going public in late 2020, beating quarterly revenue estimates.

With increased competition from UberEats and Instacart (NASDAQ:CART), DoorDash (NASDAQ:DASH) has widened its offerings by partnering with companies such as Sephora and grocer Wakefern to maintain market share.

Total orders increased 18% to 643 million in the quarter.

The company announced a partnership with Lyft (NASDAQ:LYFT) to offer the ride-share app's members a three-month free trial of its DashPass membership, providing up to 50% off on one order. In return, customers receive up to 50% off four scheduled rides to the airport and a 5% discount on scheduled on-demand Lyft rides.

DoorDash expects fourth-quarter adjusted earnings before tax, interest, depreciation, and amortization (EBITDA) between $525 million and $575 million, with the midpoint above estimates of $544.8 million.

The expected fourth-quarter gross order value – a key industry metric – will be between $20.6 billion and $21 billion, compared with estimates of $20.64 billion.

Third-quarter revenue rose 25% to $2.71 billion, exceeding analysts' expectations of $2.66 billion, according to data compiled by LSEG.

The firm reported a profit per share of 38 cents, up from a loss of 19 cents a year earlier, while analysts expected a profit of 22 cents.

DoorDash's shares, having risen nearly 57% this year, were down about 1% in extended trading.

"DoorDash has beaten estimates the last two quarters and there was a lot of hype coming into this earnings release," said eMarketer analyst Blake Droesch. "What we are probably seeing right now is a small and temporary market correction, but that shouldn't overshadow how strong these earnings were for DoorDash.",