DoorDash Inc. reported a stronger-than-expected profit forecast for the current quarter as the delivery company experiences resilient customer demand and growth from categories beyond restaurant orders.

DoorDash expects adjusted earnings before interest, tax, depreciation and amortization for the current quarter of $470 million to $540 million, beating the consensus analyst forecast of $449.2 million. In the second quarter, DoorDash reported adjusted Ebitda of $430 million, ahead of analysts ’ expectations.

Shares surged 10.3% in premarket trading Friday.

The company has been adding new merchants to its marketplace, especially under new verticals such as grocery, beauty, home improvement and sporting goods. DoorDash announced new partnerships in the second quarter with Ulta Beauty Inc. and Michaels Stores Inc., among others. Progress in these categories, as well as growth in DashPass subscription members and new cost efficiencies, have helped increase overall order frequency, according to the company.

Total orders increased 19% to 635 million in the three months ending in June, exceeding the average analyst estimate of 627 million. The gross value of those orders — a key metric for online delivery firms — jumped 20% to $19.7 billion, also surpassing Wall Street ’ s estimates.

While DoorDash holds a market-leading share of US food delivery sales over competitors Uber Eats and Grubhub, the company is experiencing a slowdown in order growth due to intensifying competition, according to analysts from Keybank Capital Markets and Evercore ISI. The company has also not provided a timeline for when it expects to become operationally profitable, although analysts currently expect it to hit this milestone by the fourth quarter of 2024, driven by improving margins in international markets and new verticals.

The delivery company ’ s net loss was $157 million in the second quarter, much more than the $47.95 million analysts expected. DoorDash said the loss was driven primarily by one-time litigation and office lease expenses. But the company said it does not expect these litigation expenses to have a long-term impact on operations.

DoorDash said there is "increasing legislative and regulatory certainty" following California ’ s ruling last month to uphold Proposition 22, a law allowing gig economy companies to classify their drivers as independent contractors. Had the judge ruled to overturn Prop 22, the companies would have faced the threat of millions of dollars in additional costs to pay drivers if they were to be reclassified as employees, upending their business models and potentially raising user costs in one of their biggest US markets.