DASH
Doordash, INC
NASDAQ
10-Q: DoorDash Reports Profitable Q1 2025, Announces Major Acquisitions
Sentiment:
Quarterly Report
7 May 2025 4:11 PM
DoorDash achieves profitability in Q1 2025, driven by revenue growth and operational efficiencies, while also announcing significant acquisitions of Deliveroo and SevenRooms.
Capital raise
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
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.
Summary
- DoorDash reported a net income of $193 million attributable to common stockholders for the three months ended March 31, 2025, a significant turnaround from a net loss of $23 million in the same period of 2024.
- Revenue increased by 21% year-over-year to $3.032 billion, driven by a 20% increase in Marketplace GOV (Gross Order Value) to $23.076 billion.
- Total Orders grew by 18% year-over-year to 732 million.
- Adjusted EBITDA increased to $590 million, up from $371 million in the prior year.
- The company announced agreements to acquire Deliveroo plc for approximately 2.9 billion and SevenRooms Inc. for approximately $1.2 billion.
- DoorDash's share repurchase program remains active, with $5.0 billion authorized for repurchases as of March 31, 2025, though no shares were repurchased during the quarter.
- The company's cash, cash equivalents, and marketable securities totaled $6.7 billion as of March 31, 2025.
Sentiment
Score: 8
Explanation: The document presents a positive outlook with strong financial results and strategic acquisitions. While risks are acknowledged, the overall tone is optimistic and indicates a company on a growth trajectory.
Positives
- The company achieved profitability with a net income of $193 million.
- Revenue and Marketplace GOV showed strong year-over-year growth.
- Adjusted EBITDA significantly increased, indicating improved operating performance.
- The acquisitions of Deliveroo and SevenRooms could expand DoorDash's market presence and service offerings.
- The company has a substantial amount of cash and marketable securities, providing financial flexibility.
Negatives
- The company has a history of net losses and an accumulated deficit of $5.1 billion.
- The company expects costs to increase over time.
- The company faces intense competition in the on-demand delivery market.
- The company is subject to various legal proceedings and regulatory inquiries.
Risks
- Reclassification of Dashers as employees could significantly increase operating costs.
- The company's international operations are subject to various risks, including currency fluctuations and regulatory challenges.
- The company's business is subject to a variety of laws and regulations, many of which are unsettled and still developing.
- The company is subject to cybersecurity incidents and data breaches.
- The company's multi-class stock structure concentrates voting power with the Co-Founders.
Future Outlook
DoorDash expects to continue investing in growth initiatives, including expanding its platform, developing new features, and entering new markets. The company anticipates that the acquisitions of Deliveroo and SevenRooms will contribute to its long-term growth and profitability. The Deliveroo transaction is expected to close during the fourth quarter of 2025, subject to certain regulatory approvals, Deliveroo shareholder approval and other customary closing conditions. The SevenRooms transaction is expected to close during the second half of 2025, subject to customary closing conditions and regulatory approvals.
Management Comments
- Management believes that Contribution Profit is a useful indicator of the economic impact of orders fulfilled through DoorDash as it takes into account the direct expenses associated with generating and fulfilling orders.
- Management believes that Adjusted EBITDA is a measure that we use to assess our operating performance and the operating leverage in our business.
Industry Context
The on-demand local commerce market is highly competitive, with DoorDash competing against other large players like Uber Eats, Just Eat Takeaway, and Delivery Hero, as well as smaller local players and merchants with their own delivery platforms. The acquisitions of Deliveroo and SevenRooms are strategic moves to expand DoorDash's market share and service offerings in this competitive landscape.
Comparison to Industry Standards
- DoorDash's revenue growth of 21% is comparable to other major players in the on-demand delivery market, such as Uber Eats, which has also reported significant growth in recent quarters.
- The company's focus on profitability and Adjusted EBITDA aligns with industry trends, as investors are increasingly prioritizing profitability over pure growth.
- The acquisitions of Deliveroo and SevenRooms are similar to other consolidation efforts in the industry, as companies seek to expand their market reach and service offerings.
- DoorDash's investment in new technologies, such as autonomous delivery, is consistent with industry trends, as companies explore ways to improve efficiency and reduce costs.
Stakeholder Impact
- Shareholders: Potential for increased stock value due to profitability and strategic acquisitions.
- Employees: Potential for growth and development opportunities within the expanding company.
- Merchants: Access to a larger customer base and expanded service offerings.
- Consumers: Increased convenience and selection through the expanded platform.
- Dashers: Potential for increased earnings opportunities.
Next Steps
- Complete the acquisitions of Deliveroo and SevenRooms.
- Integrate the acquired businesses into DoorDash's existing operations.
- Continue to invest in growth initiatives, including expanding the platform and developing new features.
- Monitor and adapt to changes in the regulatory environment.
- Execute the share repurchase program.
Legal Proceedings
- The company is currently under audit by the Employment Development Department, State of California (the CA EDD) for payroll tax liabilities.
- In June 2020, the San Francisco District Attorney filed an action in the Superior Court of California, County of San Francisco, alleging that the Company misclassified California Dashers as independent contractors as opposed to employees in violation of the California Labor Code and the California Unfair Competition Law, among other allegations.
Key Dates
- 2013: DoorDash launched operations.
- 2019-11-19: DoorDash entered into a revolving credit and guaranty agreement.
- 2020-06: San Francisco District Attorney filed an action alleging misclassification of California Dashers.
- 2020-12: DoorDash initial public offering.
- 2022-05-31: DoorDash acquired Wolt Enterprises Oy.
- 2023-01: CA EDD issued an assessment for certain amounts owed by the Company on behalf of Dashers.
- 2024-04-26: Amended and restated revolving credit and guaranty agreement.
- 2025-02: DoorDash announced a share repurchase program.
- 2025-03-31: End of the quarterly period.
- 2025-04-30: Share count as of this date.
- 2025-05-03: Definitive agreement to acquire SevenRooms Inc.
- 2025-05-06: Announcement of agreement to acquire Deliveroo plc.
Keywords
DoorDash, Deliveroo, SevenRooms, acquisition, profitability, revenue, Marketplace GOV, Adjusted EBITDA, share repurchase, financial results, Q1 2025, delivery, local commerce
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.