DASH
Doordash, INC
NASDAQ
8-K: DoorDash Delivers Strong Q4 and Full Year 2024 Results, Fueled by Growth in Orders and Marketplace GOV
Sentiment:
Earnings Release
11 February 2025 4:06 PM
DoorDash announces a successful fourth quarter and full year 2024, marked by significant growth in total orders, marketplace GOV, and revenue, alongside its first full year of positive GAAP net income.
Better than expected
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.
Summary
- DoorDash reported its financial results for the quarter and fiscal year ended December 31, 2024.
- In 2024, revenue grew 24% year-over-year, and the company achieved its first full year of positive GAAP net income.
- Total Orders increased 19% Y/Y to 685 million in Q4 2024.
- Marketplace GOV increased 21% Y/Y to $21.3 billion in Q4 2024.
- Revenue increased 25% Y/Y to $2.9 billion in Q4 2024.
- GAAP net income attributable to DoorDash, Inc. common stockholders was $141 million in Q4 2024, compared to a loss of $(154) million in Q4 2023.
- Adjusted EBITDA increased to $566 million in Q4 2024, from $363 million in Q4 2023.
- Monthly active users (MAUs) reached an all-time high of over 42 million in December 2024, up from over 37 million in December 2023.
- DashPass and Wolt+ memberships exceeded 22 million exiting 2024, up from over 18 million exiting 2023.
- The company's board of directors authorized the repurchase of up to $5.0 billion of its Class A common stock in February 2025.
- For Q1 2025, DoorDash expects Marketplace GOV between $22.6 billion and $23.0 billion and Adjusted EBITDA between $550 million and $600 million.
Sentiment
Score: 9
Explanation: The document presents a highly positive outlook, highlighting strong financial performance, growth in key metrics, and strategic investments for future expansion. The achievement of positive GAAP net income and the authorization of a significant share repurchase program further contribute to the positive sentiment.
Positives
- DoorDash achieved its first full year of positive GAAP net income.
- The company experienced significant growth in Total Orders, Marketplace GOV, and Revenue.
- Adjusted EBITDA reached a record high.
- Monthly active users and subscription memberships increased substantially.
- The company is expanding its services into new verticals and international markets.
- The board authorized a significant share repurchase program, indicating confidence in the company's financial position.
- Net cash provided by operating activities grew 27% YoY to $2.1B.
- Merchant advertisers in 2024 had an average quarterly retention rate of over 85% and an average quarterly revenue retention rate of over 110%.
Negatives
- The company anticipates significant levels of ongoing investment in new categories and international markets, which could impact profitability in the short term.
- Increasing international exposure heightens risks associated with operating in foreign markets, including geopolitical and currency risks.
- Stock-based compensation expense is expected to be approximately $1.1 billion to $1.2 billion in 2025.
- Depreciation and amortization expense is expected to be approximately $580 million to $600 million in 2025.
Risks
- Consumer spending could be weaker than expected, impacting results.
- Operating in foreign markets introduces geopolitical and currency risks.
- Competition in the local commerce and delivery space remains intense.
- The company's ability to attract and retain merchants, consumers, and Dashers is crucial to its success.
- Legal proceedings and regulatory matters could impact the business.
- Changes to the business or financial model could affect performance.
- The company's brand and reputation are subject to risk.
Future Outlook
DoorDash expects Marketplace GOV between $22.6 billion and $23.0 billion and Adjusted EBITDA between $550 million and $600 million for Q1 2025. The company anticipates Adjusted EBITDA as a percentage of Marketplace GOV to increase from Q1 to Q2 and again from Q2 to Q3 in 2025.
Management Comments
- DoorDash's approach to building the company is based on a mix of deep commitment to customers, focus on improving operational efficiency, belief in the value of scale, and ambition to do much more for local economies.
- The company is pleased with its performance throughout 2024 and excited about its potential to increase its scale, profitability, and impact on local economies in 2025 and beyond.
- CEO Tony Xu believes growing GDP locally continues to represent the best way to create economic opportunity and lift everyone up.
Industry Context
DoorDash's strong performance reflects the continued growth of the online food delivery and local commerce industries. The company is expanding its services beyond restaurants to include grocery, convenience, and other retail categories, positioning itself to capture a larger share of the local commerce market. The expansion into international markets also provides growth opportunities.
Comparison to Industry Standards
- DoorDash's growth in Marketplace GOV and revenue is competitive with other major players in the food delivery and local commerce space, such as Uber Eats and Grubhub.
- The company's focus on expanding into new verticals and international markets aligns with industry trends.
- DoorDash's achievement of positive GAAP net income is a significant milestone, as many companies in the industry are still focused on growth over profitability.
- The company's investment in technology and infrastructure, such as the SafeChat+ system, demonstrates a commitment to improving safety and operational efficiency.
- DoorDash now serves 94 of the top 100 restaurants and 44 of the top 100 retailers in the US, indicating a strong market position.
Stakeholder Impact
- Shareholders will benefit from the share repurchase program and the company's improved financial performance.
- Merchants will benefit from increased sales and access to DoorDash's platform and tools.
- Dashers will benefit from increased earnings opportunities.
- Consumers will benefit from expanded selection, convenience, and improved service quality.
Next Steps
- Continue to focus on creating incremental improvements in operational efficiency and reinvesting back into the business to increase scale and expand long-term profit potential.
- Explore new initiatives that will develop into valuable services for consumers, merchants, and Dashers.
- Focus on improving the inputs to the product (more comprehensive selection, greater affordability, faster and more accurate delivery, and better customer service).
- Continue to improve unit economics as the core product experience improves.
- Continue to improve the operational system of experimentation, feedback, and making tradeoffs between success metrics and constraints.
Key Dates
- 2013: DoorDash's first delivery was completed.
- February 2024: DoorDash's board of directors authorized the repurchase of up to $1.1 billion of its Class A common stock.
- December 31, 2024: End of the reported fiscal year.
- February 11, 2025: Date of the earnings release and announcement of the new share repurchase program.
Keywords
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.