DASH
Doordash, INC
NASDAQ
10-Q: DoorDash Reports Q1 2024 Results: Revenue Growth and Improved Profitability
Sentiment:
Quarterly Report
1 May 2024 4:08 PM
DoorDash's first quarter of 2024 shows a 23% revenue increase and a significant reduction in net losses, signaling positive financial momentum.
Better than expected
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.
Summary
- DoorDash's revenue increased by 23% year-over-year to $2.513 billion in the first quarter of 2024.
- The company's Marketplace Gross Order Value (GOV) grew by 21% to $19.239 billion.
- Net loss attributable to DoorDash, Inc. common stockholders was reduced to $23 million, compared to a loss of $161 million in the same quarter of the previous year.
- Adjusted EBITDA increased to $371 million, up from $204 million in the first quarter of 2023.
- Total orders increased by 21% to 620 million.
- The company's net revenue margin increased to 13.1% from 12.8% in the same quarter of 2023.
- Free cash flow increased to $487 million, compared to $316 million in the same quarter of 2023.
Sentiment
Score: 7
Explanation: The document shows positive financial results with strong revenue growth and improved profitability, but there are still risks and challenges that need to be addressed. The sentiment is positive but cautious.
Positives
- The company experienced strong revenue growth, driven by increased consumer engagement and advertising revenue.
- DoorDash demonstrated improved profitability with a significant reduction in net losses.
- Adjusted EBITDA showed substantial growth, indicating improved operating leverage.
- Free cash flow increased significantly, reflecting strong cash generation.
- The company's net revenue margin improved, indicating better monetization of its platform.
Negatives
- The company still reported a net loss, although significantly reduced from the previous year.
- Operating expenses remain high, impacting overall profitability.
Risks
- The company faces intense competition in the on-demand delivery market.
- There are ongoing legal and regulatory challenges, particularly regarding the classification of Dashers.
- The company's international operations are subject to various risks, including currency fluctuations and regulatory complexities.
- The company's growth rate may fluctuate and decline in the long term.
- The company is subject to various claims, lawsuits, investigations, and proceedings, and face potential liability, expenses, and harm to its business as a result.
Future Outlook
The company expects to continue investing in its platform and expanding its business, which may result in increased expenses and potential operating losses in the future. They believe their existing cash, cash equivalents, and marketable securities, along with the available borrowings under their revolving credit facility, will be sufficient to meet their working capital and capital expenditures needs for at least the next 12 months and beyond.
Management Comments
- Management uses Contribution Profit to evaluate operating performance and trends.
- Management believes that Contribution Profit is a useful indicator of the economic impact of orders fulfilled through DoorDash.
- Management uses Adjusted EBITDA as a performance measure to assess operating performance and the operating leverage in the business.
Industry Context
The on-demand local commerce industry is highly competitive, with DoorDash facing competition from other delivery platforms, merchants with their own online ordering systems, and traditional offline ordering channels. The company is also expanding into new verticals beyond food, which will increase competition from large e-commerce companies and retailers.
Comparison to Industry Standards
- DoorDash's revenue growth of 23% is a strong result compared to some competitors in the on-demand delivery space, but it is important to compare this to companies like Uber Eats and Grubhub, which may have different growth trajectories and market positions.
- The reduction in net loss and increase in Adjusted EBITDA are positive indicators of improved financial health, but it is important to compare these metrics to industry benchmarks and the performance of similar companies.
- The company's focus on expanding into new verticals and international markets is consistent with industry trends, but the success of these initiatives will depend on their ability to compete effectively in these new areas.
- DoorDash's reliance on independent contractors is a common practice in the industry, but it also exposes them to legal and regulatory risks, as seen with the ongoing debates around worker classification.
Stakeholder Impact
- Shareholders will benefit from the improved financial performance and potential for future growth.
- Employees may benefit from the company's continued growth and success.
- Merchants may benefit from increased order volume and access to a wider customer base.
- Consumers may benefit from a wider selection of merchants and convenient delivery options.
- Dashers may benefit from increased earning opportunities.
Next Steps
- The company will continue to invest in its platform and expand its business.
- The company will continue to monitor and address legal and regulatory challenges.
- The company will continue to evaluate strategic transactions, including acquisitions and investments.
Legal Proceedings
- The company is involved in various legal proceedings, including those related to worker classification, consumer protection, and intellectual property.
- The company is under audit by the Employment Development Department of the State of California for payroll tax liabilities.
- The company is subject to regulatory and administrative investigations, audits, demands, and inquiries concerning its business practices.
Key Dates
- 2013: DoorDash launched operations.
- 2019-11-19: DoorDash entered into a revolving credit and guaranty agreement.
- 2020-08-07: DoorDash amended and restated the revolving credit and guaranty agreement.
- 2020-11: California voters approved Proposition 22.
- 2020-12: Proposition 22 went into effect.
- 2021-08: Alameda County Superior Court found Proposition 22 unenforceable.
- 2022-05-31: DoorDash acquired Wolt Enterprises Oy.
- 2022-10-31: DoorDash further amended the revolving credit and guaranty agreement.
- 2023-03: Court of Appeal overturned the Alameda County Superior Court's ruling and upheld nearly all of Proposition 22.
- 2023-06: Petition for review in the Supreme Court of California was granted.
- 2024-01: U.S. Department of Labor released a final rule regarding the classification of employees and independent contractors.
- 2024-02: DoorDash authorized a share repurchase program of up to $1.1 billion.
- 2024-03-31: End of the first quarter of 2024.
- 2024-04-26: DoorDash amended and restated its revolving credit and guaranty agreement.
Keywords
DoorDash, delivery, revenue, EBITDA, profitability, marketplace, orders, growth, Dashers, GOV
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.