DoorDash reported higher-than-expected revenue in the first quarter as strong growth in U.S. grocery orders helped make up for slowing restaurant demand.

But the company’s shares fell more than 15% in after-hours trading Wednesday as investors appeared concerned about rising costs.

DoorDash said its net loss narrowed to $23 million in the first quarter, compared to a loss of $161 million in the same period a year ago. The loss, of 6 cents per share, was higher than the 3-cent loss Wall Street had forecast, according to analysts polled by FactSet.

DoorDash said it increased both marketing expenses and research costs during the quarter. The company, which laid off 1,250 people at the end of 2022, is also hiring again to improve its products, DoorDash Chief Financial Officer Ravi Inukonda said Wednesday during a conference call with investors.