DASH
Doordash, INC
NASDAQ
10-Q: DoorDash Reports Q2 2024 Results: Revenue Growth Continues Amidst Strategic Investments
Sentiment:
Quarterly Report
1 August 2024 4:08 PM
DoorDash's Q2 2024 results show a 23% year-over-year revenue increase, driven by growth in Marketplace GOV and advertising revenue, while the company continues to manage costs and invest in growth initiatives.
Better than expected
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.
Summary
- DoorDash's revenue for the second quarter of 2024 reached $2.63 billion, a 23% increase compared to the same period last year.
- Marketplace Gross Order Value (GOV) grew by 20% year-over-year, reaching $19.7 billion.
- The company's net loss for the quarter was $158 million, an improvement from the $172 million loss in Q2 2023.
- Adjusted EBITDA for the quarter was $430 million, up from $279 million in the prior year.
- Total orders increased by 19% year-over-year to 635 million.
- The company repurchased 14 thousand shares of its Class A common stock for approximately $2 million during the quarter.
- DoorDash recognized an $83 million impairment charge related to certain corporate office spaces.
Sentiment
Score: 7
Explanation: The document presents a generally positive outlook with strong revenue growth and improved profitability metrics. However, the company is still operating at a net loss and faces significant risks, which tempers the overall sentiment.
Positives
- Revenue growth outpaced Marketplace GOV growth due to increasing advertising revenue.
- The company's net loss improved compared to the same quarter last year.
- Contribution profit and adjusted EBITDA showed significant year-over-year growth.
- Free cash flow increased due to higher net cash provided by operating activities.
Negatives
- The company incurred an $83 million impairment charge related to office lease spaces.
- General and administrative expenses increased by 45% due to the impairment charge and higher legal, tax, and regulatory expenses.
- The company continues to operate at a net loss, although it has improved year-over-year.
Risks
- The company faces intense competition in the local delivery market.
- There are ongoing legal proceedings related to the classification of Dashers as independent contractors.
- The company is subject to various regulatory and administrative investigations.
- The company's business is subject to fluctuations in interest rates and foreign exchange rates.
- There are risks associated with the company's international operations and expansion.
- The company's future growth depends on its ability to attract and retain merchants, consumers, and Dashers.
- The company's systems are vulnerable to cyberattacks and other security incidents.
Future Outlook
The company expects to continue investing in growth initiatives and expanding its platform, while also managing costs and improving profitability.
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 operating leverage.
Industry Context
The results reflect the ongoing growth in the on-demand delivery market, with DoorDash continuing to compete with other major players like Uber Eats and Grubhub. The company's focus on expanding its advertising revenue stream is also indicative of a broader trend in the industry.
Comparison to Industry Standards
- DoorDash's 23% revenue growth is a strong result compared to some competitors, but it is important to compare this to companies like Uber Eats and Just Eat Takeaway (Grubhub) to get a full picture of the competitive landscape.
- The company's adjusted EBITDA growth is also a positive sign, but it is important to compare this to the profitability of other companies in the industry.
- The company's net loss, while improved, still indicates that it is not yet profitable, which is a common theme for many companies in the on-demand delivery space.
- DoorDash's focus on expanding into new verticals and international markets is similar to the strategies of other major players in the industry.
Stakeholder Impact
- Shareholders may be encouraged by the revenue growth and improved profitability metrics, but may be concerned about the ongoing legal and regulatory challenges.
- Employees may be affected by the company's cost management efforts and any potential changes in operations.
- Merchants may benefit from the company's efforts to attract more consumers to its platform.
- Consumers may benefit from the company's efforts to expand its platform and improve its services.
- Dashers may be affected by any changes in the company's pay models or classification.
Next Steps
- The company will continue to invest in platform development and expansion.
- The company will focus on managing costs and improving profitability.
- The company will continue to monitor and respond to regulatory and legal challenges.
Legal Proceedings
- The company is involved in ongoing legal proceedings related to the classification of Dashers as independent contractors.
- The company is subject to various regulatory and administrative investigations.
- The company is involved in other legal proceedings related to consumer protection, intellectual property, and personal injury matters.
Key Dates
- 2019-11-19: Initial revolving credit and guaranty agreement entered into.
- 2020-11: Board of directors approved the grant of 10,379,000 RSUs to the Company's Chief Executive Officer.
- 2022-05-31: Acquisition of Wolt Enterprises Oy completed.
- 2024-02: Share repurchase program authorized for up to $1.1 billion.
- 2024-04-26: Revolving credit and guaranty agreement amended and restated.
- 2024-06-30: End of the second quarter of 2024.
- 2024-07: Company repurchased an additional 2.1 million shares of its Class A common stock for approximately $217 million.
Keywords
DoorDash, delivery, Marketplace GOV, EBITDA, revenue, orders, Dashers, financial results, advertising, profitability
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.