Founded in 2013 and headquartered in San Francisco, DoorDash is an online food order demand aggregator. Consumers can use its app to order food on-demand for pickup or delivery from merchants mainly in the US. Through the acquisition of Wolt in 2022, the firm also provides this service in Europe. DoorDash provides a marketplace for the merchants to create a presence online, market their offerings, and meet demand by making the offerings available for pickup or delivery. The firm provides similar service to businesses in addition to restaurants, such as grocery, retail, pet supplies, and flowers.
Performance Overview
In Q2 2024, DoorDash Inc (DASH, Financial) set new quarterly records for Total Orders, Marketplace GOV, and revenue. Total Orders increased 19% year-over-year (Y/Y) to 635 million, and Marketplace GOV increased 20% Y/Y to $19.7 billion. Revenue grew 23% Y/Y to $2.63 billion, surpassing the analyst estimate of $2.54 billion. However, the company reported a GAAP net loss of $158 million, slightly better than the $172 million loss in Q2 2023 but missing the estimated earnings per share (EPS) of -$0.09.
Key Financial Metrics
| Metric | Q2 2023 | Q2 2024 | Y/Y Growth |
|---|---|---|---|
| Total Orders | 532 million | 635 million | 19% |
| Marketplace GOV | $16.47 billion | $19.71 billion | 20% |
| Revenue | $2.13 billion | $2.63 billion | 23% |
| Net Revenue Margin | 13.0% | 13.3% | 0.3 pp |
| GAAP Net Loss | -$172 million | -$158 million | -8% |
| Adjusted EBITDA | $279 million | $430 million | 54% |
Financial Achievements and Challenges
DoorDash Inc (DASH, Financial) achieved significant milestones in Q2 2024, including a 23% Y/Y increase in revenue and a 54% Y/Y increase in Adjusted EBITDA to $430 million. The company's Net Revenue Margin also improved to 13.3% from 13.0% in Q2 2023, driven primarily by an increasing contribution from advertising.
However, the company continues to face challenges, including a GAAP net loss of $158 million, driven by litigation reserves of $85 million and office lease impairment expenses of $83 million. These challenges highlight the ongoing costs associated with legal and regulatory issues, as well as the expenses related to office space management.
Income Statement Highlights
DoorDash Inc (DASH, Financial) reported a GAAP gross profit of $1.195 billion, up from $951 million in Q2 2023. GAAP sales and marketing expenses increased to $509 million, up 8% Y/Y, while GAAP research and development expenses rose to $303 million, up 13% Y/Y. GAAP general and administrative expenses saw a significant increase to $494 million, up 45% Y/Y, primarily due to office lease impairment expenses and legal, tax, and regulatory expenses.
Cash Flow and Balance Sheet
In Q2 2024, DoorDash Inc (DASH, Financial) generated net cash provided by operating activities of $530 million and Free Cash Flow of $451 million, up from $393 million and $311 million, respectively, in Q2 2023. The company ended the quarter with $3.43 billion in cash and cash equivalents, up from $2.66 billion at the end of 2023.
Operational Highlights
DoorDash Inc (DASH, Financial) added tens of thousands of new merchants to its marketplace in the U.S. and saw a double-digit Y/Y increase in U.S. monthly active users (MAU) in June. The company also expanded its international presence, adding over 500 new cities and four new countries since acquiring Wolt in 2022.
Conclusion
DoorDash Inc (DASH, Financial) continues to show strong revenue growth and operational expansion, but the company faces ongoing challenges related to legal and regulatory expenses. The significant increase in Adjusted EBITDA and Free Cash Flow are positive indicators for the company's financial health, but the GAAP net loss remains a concern for investors.
Explore the complete 8-K earnings release (here) from DoorDash Inc for further details.
