DASH
Doordash, INC
NASDAQ
10-Q: DoorDash Reports Strong Q3 Growth, Achieves Profitability
Sentiment:
Quarterly Report
30 October 2024 4:07 PM
DoorDash's Q3 2024 results show significant growth in orders and revenue, with the company achieving net profitability.
Better than expected
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.
Summary
- DoorDash's Q3 2024 saw a 25% year-over-year increase in revenue, reaching $2.706 billion.
- Total orders grew by 18% year-over-year to 643 million.
- Marketplace Gross Order Value (GOV) increased by 19% year-over-year to $20.002 billion.
- The company achieved a net income of $162 million attributable to common stockholders, a significant turnaround from a net loss of $73 million in the same quarter of the previous year.
- Adjusted EBITDA for the quarter was $533 million, up from $344 million in Q3 2023.
- The net revenue margin increased to 13.5% from 12.9% in the same quarter of 2023.
- Contribution profit increased to $930 million, compared to $640 million in the same quarter of 2023.
- Free cash flow was $444 million, up from $324 million in the same quarter of 2023.
Sentiment
Score: 8
Explanation: The document shows strong financial performance with a return to profitability and significant growth in key metrics. While there are risks, the overall tone is positive and indicates a healthy business trajectory.
Positives
- DoorDash achieved net profitability in Q3 2024, a significant improvement from the previous year.
- The company experienced strong growth in total orders and Marketplace GOV.
- The net revenue margin improved, indicating increased efficiency and profitability.
- Adjusted EBITDA and free cash flow both showed substantial year-over-year growth.
- The company's international revenue increased significantly, demonstrating successful expansion efforts.
Negatives
- Cost of revenue, exclusive of depreciation and amortization, increased by 19% year-over-year.
- General and administrative expenses increased by 9% year-over-year.
- The company continues to face legal and regulatory challenges, including ongoing audits and litigation related to worker classification.
Risks
- The company faces intense competition in the local commerce market.
- There are ongoing legal and regulatory risks, particularly regarding the classification of Dashers as independent contractors.
- The company's international operations are subject to various risks, including currency fluctuations and compliance with local regulations.
- The company's business is subject to seasonal fluctuations and macroeconomic conditions.
- The company relies on third-party providers for key services, including cloud infrastructure and payment processing, which could pose operational risks.
Future Outlook
The company expects to continue to invest in its platform and expand 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 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.
Industry Context
The results reflect a competitive landscape in the on-demand delivery sector, where DoorDash is competing with other major players like Uber Eats and Just Eat Takeaway. The company's focus on expanding its platform and improving efficiency is in line with industry trends.
Comparison to Industry Standards
- DoorDash's growth in orders and revenue is comparable to other major players in the on-demand delivery sector, such as Uber Eats and Grubhub.
- The company's achievement of profitability is a positive sign, as many companies in the sector are still operating at a loss.
- DoorDash's adjusted EBITDA margin of 2.7% of Marketplace GOV is within the range of other established players in the industry.
- The company's focus on expanding into new categories and geographies is consistent with the strategies of other major players in the sector.
- DoorDash's investment in technology and infrastructure is comparable to other companies in the sector.
Stakeholder Impact
- Shareholders will benefit from the company's return to profitability and strong growth.
- Employees may benefit from the company's continued growth and success.
- Merchants may see increased order volume and revenue through the platform.
- Consumers will continue to have access to a wide range of delivery options.
- Dashers will continue to have opportunities to earn income through the platform.
Next Steps
- The company plans to continue investing in its platform and expanding its business.
- DoorDash will continue to monitor and address legal and regulatory challenges.
- The company will focus on maintaining and improving the cost-effectiveness of its platform.
Legal Proceedings
- The company is currently under audit by the Employment Development Department, State of California for payroll tax liabilities.
- The company is involved in a legal action filed by the San Francisco District Attorney alleging misclassification of California Dashers.
- The company is subject to various other legal proceedings and regulatory investigations related to its business practices.
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 Dashers.
- 2020-11: California voters approved Proposition 22.
- 2022-05-31: DoorDash acquired Wolt Enterprises Oy.
- 2023-01: CA EDD issued an assessment for payroll tax liabilities.
- 2024-02: DoorDash authorized a share repurchase program of up to $1.1 billion.
- 2024-04-26: Revolving credit and guaranty agreement was amended and restated.
- 2024-07: Supreme Court of California upheld Proposition 22.
- 2024-09-30: End of the reporting period for this quarterly report.
- 2024-10-25: Date of outstanding share count.
- 2024-10-30: Date of report filing.
Keywords
DoorDash, local commerce, delivery, Marketplace GOV, Adjusted EBITDA, net income, revenue, orders, Dashers, 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.
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.
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
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.