DASH
Doordash, INC
NASDAQ
8-K: DoorDash Reports Record Q1 2025 Results, Announces Acquisitions of SevenRooms and Proposed Offer for Deliveroo
Sentiment:
Earnings Release
6 May 2025 7:24 AM
DoorDash announced record first quarter 2025 financial results, driven by growth in total orders and marketplace GOV, and revealed agreements to acquire SevenRooms and Deliveroo.
Better than expected
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.
Summary
- DoorDash reported record financial results for Q1 2025, including new quarterly records for Total Orders, Marketplace GOV, revenue, and GAAP net income.
- Total Orders increased 18% year-over-year to 732 million, and Marketplace GOV increased 20% year-over-year to $23.1 billion.
- Revenue increased 21% year-over-year to $3.0 billion, while Net Revenue Margin remained flat at 13.1%.
- GAAP net income attributable to DoorDash, Inc. common stockholders increased to $193 million from a loss of $(23) million in Q1 2024.
- Adjusted EBITDA increased to $590 million from $371 million in Q1 2024.
- DoorDash announced an agreement to acquire SevenRooms for approximately $1.2 billion in cash and a proposed offer to acquire Deliveroo for £2.9 billion.
- For Q2 2025, DoorDash expects Marketplace GOV to be between $23.3 billion and $23.7 billion, and Adjusted EBITDA to be between $600 million and $650 million.
Sentiment
Score: 9
Explanation: The document presents a highly positive outlook with record financial results, strategic acquisitions, and optimistic future guidance. The company's performance significantly improved, and the acquisitions are expected to further enhance its market position.
Positives
- DoorDash achieved record financial results in Q1 2025 across multiple key metrics.
- The company demonstrated strong growth in Total Orders and Marketplace GOV.
- DoorDash successfully improved its profitability, achieving a GAAP net income of $193 million.
- The acquisitions of SevenRooms and Deliveroo are expected to expand DoorDash's capabilities and market reach.
- The company's financial outlook for Q2 2025 is positive, with continued growth expected.
Negatives
- Net Revenue Margin remained flat year-over-year at 13.1% and decreased quarter-over-quarter due to affordability initiatives and a shift in volume to categories with lower margins, although an increase is expected in Q2 2025.
- The company anticipates significant ongoing investment in new categories and international markets, which could impact profitability.
Risks
- Changes in consumer demand could negatively impact DoorDash's results.
- Increasing international exposure heightens risks associated with operating in foreign markets, including geopolitical and currency risks.
- The acquisitions of SevenRooms and Deliveroo are subject to regulatory and shareholder approvals, and there is a risk that these transactions may not be completed.
- Failure to successfully integrate SevenRooms and Deliveroo could impact the expected benefits of these acquisitions.
Future Outlook
For Q2 2025, DoorDash expects Marketplace GOV to be between $23.3 billion and $23.7 billion and Adjusted EBITDA to be between $600 million and $650 million. The company anticipates Adjusted EBITDA as a percentage of Marketplace GOV to increase from Q2 to Q3.
Management Comments
- We believe these results reflect our relentless focus on building great products for consumers, merchants, and Dashers in the communities we serve around the world.
- We are very pleased with our financial performance and ability to execute against key strategic priorities so far in 2025.
- We believe both SevenRooms and Deliveroo will expand our ability to build world class services that increase our potential to grow local commerce and support our financial goals.
Industry Context
The acquisitions of SevenRooms and Deliveroo indicate DoorDash's strategy to expand its offerings beyond restaurant delivery and strengthen its position in the local commerce and hospitality technology sectors. This move aligns with the broader industry trend of consolidation and diversification among major players in the delivery and online commerce space.
Comparison to Industry Standards
- DoorDash's 20% year-over-year growth in Marketplace GOV is competitive compared to other major players in the food delivery industry, such as Uber Eats and Just Eat Takeaway.
- The acquisition of Deliveroo for £2.9 billion is a significant investment, comparable to other major acquisitions in the industry, such as Just Eat's acquisition of Grubhub.
- The company's focus on expanding into grocery and other categories mirrors the strategies of competitors like Instacart and Amazon.
- DoorDash's Adjusted EBITDA margin of 2.6% is within the range of profitability seen among its peers, but there is room for improvement as the company scales its operations.
Stakeholder Impact
- Shareholders will benefit from the improved financial performance and strategic acquisitions.
- Merchants will gain access to new tools and services to grow their businesses.
- Consumers will benefit from expanded offerings and improved service quality.
- Dashers may see increased opportunities as the company expands its operations.
Next Steps
- Complete the acquisitions of SevenRooms and Deliveroo, subject to regulatory and shareholder approvals.
- Integrate SevenRooms and Deliveroo into DoorDash's existing operations.
- Continue to invest in new categories and international markets.
- Execute on the company's share repurchase authorization.
Key Dates
- May 6, 2025: Date of report and press release announcing Q1 2025 financial results.
- March 31, 2025: End of the first quarter 2025.
- Q4 2025: Expected closing of the Deliveroo acquisition, subject to regulatory and shareholder approvals.
- Second half of 2025: Expected closing of the SevenRooms acquisition, subject to customary closing conditions and regulatory approvals.
Keywords
DoorDash, financial results, acquisition, SevenRooms, Deliveroo, Marketplace GOV, Total Orders, Adjusted EBITDA, Net income, Q1 2025, local commerce, hospitality technology
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.