DASH
Doordash, INC
NASDAQ
10-K: DoorDash Achieves First Annual Profitability in 2024, Eyes Continued Growth
Sentiment:
Annual Results
14 February 2025 4:13 PM
DoorDash reports its first profitable year in 2024, driven by Marketplace growth and strategic investments.
Better than expected
The company achieved its first annual profitability in 2024.
Revenue increased by 24% to $10.722 billion in 2024.
Adjusted EBITDA increased to $1.9 billion in 2024.
Free Cash Flow increased to $1.8 billion in 2024.
Summary
- DoorDash achieved its first annual profitability in 2024, reporting a net income of $123 million after incurring a net loss of $558 million in 2023.
- Revenue increased by 24% to $10.722 billion in 2024, driven by a 20% increase in Marketplace GOV to $80.231 billion.
- The company's Marketplace GOV grew to $80.2 billion, a 20% increase year-over-year, while Total Orders increased by 20% to 2.583 billion.
- DoorDash is focused on expanding its platform, enhancing the consumer experience, and providing attractive services for merchants, consumers, and Dashers.
- The company faces intense competition in the on-demand delivery market and is subject to various laws and regulations globally.
- DoorDash is committed to diversity and inclusion and aims to provide Dashers with accessible, flexible, and worthwhile earnings opportunities.
- The company's international operations are subject to additional costs and risks, and its plans may not be successful.
- DoorDash is subject to various claims, lawsuits, investigations, and proceedings, and faces potential liability, expenses, and harm to its business as a result.
- The company is committed to the long-term success of its business, including by expanding its platform and enhancing the consumer experience, which may not maximize short-term financial results and may yield results that conflict with the markets expectations, which could result in our stock price being adversely affected.
Sentiment
Score: 8
Explanation: The document presents a positive outlook with the company achieving its first annual profitability and demonstrating strong growth in key metrics. However, it also acknowledges significant risks and challenges, indicating a balanced perspective.
Positives
- Achieved first annual profitability in 2024.
- Significant revenue growth driven by Marketplace GOV and Total Orders.
- Increased Adjusted EBITDA and Free Cash Flow.
- Commitment to diversity and inclusion.
- Focus on providing attractive services for merchants, consumers, and Dashers.
Negatives
- Intense competition in the on-demand delivery market.
- Subject to various claims, lawsuits, investigations, and proceedings.
- International operations are subject to additional costs and risks.
- Potential for reclassification of Dashers as employees.
- The multi-class structure of the common stock concentrates voting power.
Risks
- Intense competition could adversely affect business, financial condition, and results of operations.
- Failure to retain existing or acquire new merchants and consumers could decrease revenue, revenue growth, and margins.
- Reclassification of Dashers as employees could have a material adverse effect on the business.
- Various laws and regulations globally could subject the company to legal claims, increased costs, and operational burdens.
- Cybersecurity incidents could interrupt operations and adversely affect the company's reputation and financial results.
- Failure to manage growth effectively could harm the brand, business, financial condition, and results of operations.
- The multi-class structure of the common stock concentrates voting power, limiting stockholders' ability to influence outcomes.
- The trading price of Class A common stock may be volatile, and investors could lose all or part of their investment.
Future Outlook
DoorDash intends to provide merchants with an expanding suite of services, consumers with a broad selection of merchants and products, and Dashers with unique opportunities to grow its business.
Industry Context
The on-demand local commerce market is intensely competitive and characterized by shifting user preferences, fragmentation, and frequent introductions of new services and offerings.
Comparison to Industry Standards
- DoorDash competes with other local on-demand delivery companies, including Uber Eats, Just Eat Takeaway, and Delivery Hero.
- The company also competes with merchants that have their own online ordering platforms and delivery fleets.
- DoorDash faces competition from traditional offline ordering channels, such as take-out offerings and telephone orders.
- As DoorDash expands into additional verticals, it may compete with large e-commerce companies, retailers, and grocery store chains.
Stakeholder Impact
- Merchants: Expanding suite of services to help them build and grow successful omnichannel businesses.
- Consumers: Broad selection of merchants and products, consistent and high-quality experiences, and affordability.
- Dashers: Unique opportunities that compete effectively for their time and effort with every task.
- Shareholders: Long-term value creation through platform expansion and enhanced consumer experience.
Next Steps
- Continue to improve operational and financial infrastructure.
- Continue to expand the platform and enhance the consumer experience.
- Consider strategic transactions, including acquisitions and investments.
- Manage and adapt to the regulatory environment and new laws related to the business.
Legal Proceedings
- The company is subject to claims, lawsuits, arbitration proceedings, government investigations, audits, and demands, and other legal, regulatory, and other administrative proceedings.
- The company is involved in numerous legal proceedings related to Dasher classification.
- The company is subject to regulatory review, proceedings, and audits pursuant to national, federal, state, and local laws regulating the sale and delivery of alcoholic beverages and other highly regulated products.
Key Dates
- 2013: DoorDash launched operations.
- 2015: Palo Alto Delivery Inc. changed its name to DoorDash, Inc.
- 2020-11-24: Date of CEO Performance Award grant.
- 2022-05-31: DoorDash completed the acquisition of Wolt Enterprises Oy.
- 2024-04-26: Amended and Restated Revolving Credit and Guaranty Agreement Maturing April 2029
- 2024-12-31: End of fiscal year.
- 2025-02: DoorDash announced the authorization of a share repurchase program.
Keywords
DoorDash, Marketplace, Delivery, Dashers, Commerce Platform, Revenue, Profitability, Competition, Regulation, Risk Factors
DASH
Doordash, INC
NASDAQ
Sector: Communication Services
Filings with Classifications
Capital raise
2 June 2025 6:15 AM
Debt Offering
- DoorDash issued $2.75 billion aggregate principal amount of 0% convertible senior notes due 2030 in a private offering.
- The offering was upsized from $2.5 billion, with initial purchasers fully exercising their $250 million option for additional notes.
- Net proceeds were approximately $2,720 million.
- Approximately $338.5 million of the net proceeds were used for convertible note hedge transactions, partially offset by proceeds from warrant sales.
- The remaining proceeds are designated for general corporate purposes, including potential acquisitions and share repurchases.
Capital raise
28 May 2025 6:01 AM
Capital Raise Announcement
- DoorDash announced the pricing of $2.5 billion aggregate principal amount of 0% convertible senior notes due 2030 in a private offering to qualified institutional buyers.
- The offering size was increased from the previously announced $2.0 billion, demonstrating strong demand.
- Initial purchasers were granted an option to purchase up to an additional $250.0 million aggregate principal amount of notes.
- The estimated net proceeds of approximately $2,472 million will be used for funding convertible note hedge transactions and for general corporate purposes, including potential acquisitions and share repurchases.
Capital raise
27 May 2025 7:08 AM
Debt Offering Announcement
- DoorDash announced a proposed private offering of $2.0 billion aggregate principal amount of convertible senior notes due 2030.
- The offering is to qualified institutional buyers pursuant to Rule 144A under the U.S. Securities Act of 1933.
- Initial purchasers have an option to purchase up to an additional $200.0 million aggregate principal amount of notes.
- Proceeds will be used to fund convertible note hedge transactions and for general corporate purposes, including potential acquisitions and share repurchases.
Capital raise
7 May 2025 4:11 PM
Quarterly Report
- The company entered into a Bridge Term Loan Credit and Guaranty Agreement with J.P. Morgan Chase Bank, N.A. on May 6, 2025 to provide the Company certain borrowings in an aggregate amount of up to $2.85 billion to partially finance the cash consideration payable by us in connection with the acquisition of Deliveroo.
Better than expected
7 May 2025 4:11 PM
Quarterly Report
- The company achieved a net profit compared to a net loss in the same quarter last year.
- Revenue and Marketplace GOV showed strong year-over-year growth.
- Adjusted EBITDA significantly increased, indicating improved operating performance.
Better than expected
6 May 2025 7:24 AM
Earnings Release
- DoorDash's GAAP net income of $193 million is significantly better than the $(23) million loss reported in Q1 2024.
- Adjusted EBITDA increased to $590 million, a 59% increase year-over-year, indicating improved profitability.
- Total Orders and Marketplace GOV reached record levels, demonstrating strong growth in the company's core business.
Capital raise
6 May 2025 7:23 AM
Merger Announcement
- DoorDash has entered into a Bridge Term Loan Credit and Guaranty Agreement for up to $2.85 billion to partially finance the acquisition.
Better than expected
14 February 2025 4:13 PM
Annual Results
- The company achieved its first annual profitability in 2024.
- Revenue increased by 24% to $10.722 billion in 2024.
- Adjusted EBITDA increased to $1.9 billion in 2024.
- Free Cash Flow increased to $1.8 billion in 2024.
Better than expected
11 February 2025 4:06 PM
Earnings Release
- DoorDash achieved its first full year of positive GAAP net income.
- Adjusted EBITDA reached an all-time high of $566 million in Q4 2024.
- The board authorized a $5.0 billion share repurchase program in February 2025.
Better than expected
30 October 2024 4:07 PM
Quarterly Report
- The company achieved net profitability, a significant improvement from the previous year's net loss.
- Revenue, total orders, and Marketplace GOV all showed strong year-over-year growth.
- Adjusted EBITDA and free cash flow both increased substantially compared to the same quarter of the previous year.
Better than expected
30 October 2024 4:06 PM
Quarterly Report
- DoorDash reported its first profitable quarter as a public company, which is better than the previous quarters where the company reported losses.
- The company's key financial metrics, including total orders, marketplace GOV, and revenue, all exceeded expectations with significant year-over-year growth.
- Adjusted EBITDA also showed a substantial increase, indicating improved operational efficiency and profitability.
Better than expected
1 August 2024 4:08 PM
Quarterly Report
- The company's revenue growth exceeded expectations, driven by strong performance in Marketplace GOV and advertising revenue.
- Adjusted EBITDA and free cash flow also showed significant improvements compared to the same period last year.
Better than expected
1 August 2024 4:06 PM
Quarterly Report
- The company reported record quarterly results for Total Orders, Marketplace GOV, and revenue, exceeding expectations.
- Adjusted EBITDA reached a record high, indicating better than expected profitability.
- Net Revenue Margin improved, showing better than expected financial performance.
Better than expected
1 May 2024 4:08 PM
Quarterly Report
- The company's net loss was significantly reduced compared to the same quarter last year.
- Adjusted EBITDA increased substantially, indicating improved profitability.
- Free cash flow increased significantly, reflecting strong cash generation.
Better than expected
1 May 2024 4:07 PM
Quarterly Report
- The company's financial results exceeded expectations with record total orders, marketplace GOV, and revenue.
- The net loss was significantly reduced, indicating better than expected profitability.
- Adjusted EBITDA reached an all-time high, demonstrating better than expected operational efficiency.
Better than expected
15 February 2024 4:07 PM
Quarterly Report
- The company's GAAP net loss improved significantly compared to the previous year.
- Adjusted EBITDA increased substantially year-over-year.
- The company's revenue and total orders grew at a strong pace.
- The company generated significant free cash flow.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.