DoorDash just announced a killer earnings report with record first-quarter revenue and two major billion-dollar acquisitions—but its stock is tumbling anyway

DoorDash said Tuesday that demand for deliveries remained strong in the first quarter even as more Americans feel increasingly uneasy about the U.S. economy.

Total orders climbed 18% to 732 million, a quarterly record. Demand for grocery delivery surpassed prior quarters. DoorDash also added U.S. restaurants to its platform and broadened its geographic reach.

DoorDash confirmed that it will acquire Britain's Deliveroo for 2.9 billion pounds ($3.9 billion) in cash, expanding its business in Europe, Asia and the Middle East. Deliveroo first announced it had received a bid from DoorDash just over a week ago.

The deal is DoorDash’s second major international acquisition in three years as the company expands from its traditional base in the U.S., Canada and Australia. After the purchase of Deliveroo, and the 2022 acquisition of Helsinki-based Wolt Enterprises, DoorDash will operate in more than 40 markets worldwide.

“I could not be more excited by the prospect of what DoorDash and Deliveroo will be able to accomplish together,” DoorDash CEO Tony Xu said in the statement.

Both companies were founded in 2013, using the then emerging technology of smartphones to link restaurants and their customers to a network of delivery riders.

Deliveroo now operates in nine countries, including the U.K. and Ireland, which accounted for 59% of its business in 2023. It also does business in France, Italy, Belgium, Singapore, the United Arab Emirates, Kuwait and Qatar.

DoorDash also said Tuesday that it had purchased SevenRooms, a New York company that makes hospitality management software, for $1.2 billion in cash. DoorDash said the deal will expand its offerings to merchants and help them grow in-store sales and customer relations.

DoorDash expects the SevenRooms deal to close in the second half of this year.

The deals are the biggest for DoorDash since 2022, when it bought Finnish rival Wolt Enterprises for $8.1 billion. That acquisition brought DoorDash into 22 countries where it didn't already operate, including Germany.

With the addition of Deliveroo, DoorDash said it will now operate in 40 countries.

Revenue at DoorDash rose 21% to a quarterly record of $3.03 billion. That was short of Wall Street’s forecast of $3.09 billion, according to analysts polled by FactSet.

Net income was $193 million, a year after the company reported a $23 million in the January-March period. Adjusted for one-time items, the company earned 44 cents per share, topping Wall Street expectations by a nickel.

DoorDash shares fell 5% in premarket trading Tuesday.

This story was originally featured on Fortune.com