DASH
Doordash, INC
NASDAQ
8-K: DoorDash Achieves First Profitable Quarter as Public Company Amidst Strong Growth
Sentiment:
Quarterly Report
30 October 2024 4:06 PM
DoorDash reports its first profitable quarter as a public company in Q3 2024, driven by significant growth in total orders, marketplace GOV, and revenue.
Better than expected
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.
Summary
- DoorDash announced its Q3 2024 financial results, marking its first profitable quarter as a public company.
- Total orders increased by 18% year-over-year to 643 million.
- Marketplace Gross Order Value (GOV) rose by 19% year-over-year to $20.0 billion.
- Revenue saw a 25% year-over-year increase, reaching $2.7 billion.
- The net revenue margin improved to 13.5% from 12.9% in Q3 2023.
- GAAP net income attributable to common stockholders was $162 million, a significant turnaround from a $73 million loss in Q3 2023.
- Adjusted EBITDA increased by 55% year-over-year to $533 million.
- The company also reported net cash from operating activities of $531 million and free cash flow of $444 million.
Sentiment
Score: 9
Explanation: The document conveys a very positive sentiment due to the company achieving its first profitable quarter, strong growth metrics, and positive future outlook. The management's comments are also optimistic and confident.
Positives
- DoorDash achieved its first profitable quarter as a public company, demonstrating a significant improvement in financial performance.
- The company experienced strong growth across key metrics, including total orders, marketplace GOV, and revenue.
- The increase in net revenue margin indicates improved efficiency and profitability.
- Adjusted EBITDA saw a substantial increase, highlighting the company's operational improvements.
- The company's free cash flow increased year-over-year, demonstrating strong cash generation.
- Order rates increased year-over-year within all mature consumer cohorts, indicating strong customer loyalty and engagement.
- New consumer cohorts in Q3 2024 showed higher initial order rates than previous cohorts, suggesting successful customer acquisition strategies.
- DoorDash has increased its share of category spend among new restaurant delivery marketplace consumers in the U.S. since January 2021.
Negatives
- While the company achieved profitability, it is important to note that the company has a history of losses.
- The company continues to invest heavily in new verticals and international markets, which may impact short-term profitability.
- The company operates in a highly competitive industry, which could put pressure on margins and market share.
- The company's outlook anticipates significant levels of ongoing investment in new categories and international markets, which could impact future profitability.
Risks
- The company faces risks related to competition in the delivery industry.
- Consumer spending could deteriorate, impacting the company's financial results.
- Increasing international exposure heightens risks associated with operating in foreign markets, including geopolitical and currency risks.
- Changes in the international operating environment could negatively impact results.
- The company's future GAAP results could be significantly affected by material changes to reconciling items such as legal, tax, and regulatory expenses.
Future Outlook
DoorDash expects Marketplace GOV to be between $20.6 billion and $21.0 billion and Adjusted EBITDA to be between $525 million and $575 million for Q4 2024. The company also anticipates significant ongoing investment in new categories and international markets.
Management Comments
- Our goal is to build a large and durable business that helps local merchants succeed and expands the potential of local economies.
- We believe our results in Q3 2024 reflect our ambition to pursue large growth opportunities, our optimism in believing we can innovate around the problems of the day, and our humility in focusing on small improvements in day to day operations.
- We expect these characteristics to persist at DoorDash, which means we expect to continue investing to expand the potential of our services while holding ourselves to high standards of execution.
- We are excited by the execution of our teams and the performance of our business so far in 2024.
- In the near-term, we expect our priorities to remain consistent; we will likely spend the majority of our time trying to improve day-to-day execution and the majority of our investment capital expanding the scale and scope of our new verticals and international markets.
- Longer-term, we believe there is much more we can do to generate value for consumers and help local merchants be successful, and we are investing in new areas that we hope will become meaningful businesses over time.
Industry Context
The results indicate DoorDash's strong position in the competitive food delivery market, with a focus on expanding its services beyond restaurants and into new verticals. The company's growth in market share among new delivery consumers suggests a competitive advantage in attracting and retaining customers.
Comparison to Industry Standards
- DoorDash's 19% year-over-year growth in Marketplace GOV is strong compared to some competitors, but it is important to note that some competitors are not public companies and do not report these metrics.
- Uber Eats, a major competitor, has also reported strong growth in its delivery business, but specific comparisons are difficult without detailed financial data from all competitors.
- Grubhub, another competitor, has faced challenges in recent years, making DoorDash's performance stand out in comparison.
- The achievement of profitability is a significant milestone for DoorDash, as many delivery companies have struggled to achieve consistent profitability.
- DoorDash's focus on expanding into new verticals and international markets is a common strategy among delivery companies seeking to diversify their revenue streams and increase their market share.
Stakeholder Impact
- Shareholders will likely react positively to the company's first profitable quarter and strong growth metrics.
- Employees may be motivated by the company's success and positive outlook.
- Merchants on the platform will benefit from increased sales and reach.
- Dashers will have more earning opportunities due to increased order volume.
- Customers will benefit from improved service quality and selection.
Next Steps
- DoorDash will continue to focus on improving day-to-day execution.
- The company will continue to invest in expanding the scale and scope of its new verticals and international markets.
- DoorDash will host a conference call and webcast to discuss the quarterly results.
Key Dates
- October 30, 2024: Date of the press release announcing Q3 2024 financial results and the date of the 8-K filing.
- September 30, 2024: End of the third quarter of 2024, the period covered by the financial results.
- February 2024: Date the board of directors authorized the repurchase of up to $1.1 billion of Class A common stock.
- October 29, 2024: Date up to which the company has repurchased 2.1 million shares of Class A common stock for $224 million.
Keywords
DoorDash, Financial Results, Q3 2024, Profitability, Total Orders, Marketplace GOV, Revenue, Adjusted EBITDA, Net Income, Delivery, E-commerce, Stock Repurchase
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.