Q1 2024 DoorDash Inc Earnings Call Transcript
Key Points
- DoorDash Inc (DASH) reported a significant growth in the grocery sector, with triple-digit growth year-on-year for the third consecutive quarter.
- The company has seen positive unit economics in new verticals, even with smaller baskets and without significant contributions from CPG ad dollars.
- DoorDash Inc (DASH) has expanded its platform by adding several dozen new retailers in Q1, enhancing consumer and retailer pull.
- Ad revenue for DoorDash Inc (DASH) is substantially larger than previously estimated, showing strong adoption across all cohorts and high engagement on the consumer front.
- International business is growing substantially faster compared to peers, with several countries in the international portfolio being contribution margin profitable.
- The logistics model of DoorDash Inc (DASH) faces challenges in competing with integrated models like those of Walmart and Amazon, potentially leading to higher costs for consumers.
- Regulatory impacts in cities like Seattle and New York have led to increased costs, making the service less accessible and affordable.
- The core U.S. restaurant business showed a slight deceleration in growth, although it remains a double-digit grower.
- Investments in regulatory markets like New York City and Seattle are expected to decrease but will require operational changes to improve profitability.
- There are ongoing challenges in managing the expanding international portfolio, which now includes 29 countries outside the U.S., adding complexity to operations.
Thank you for standing by. My name is Eric, and I will be your conference operator today. At this time, I would like to welcome everyone to the DoorDash Q1 2024 Earnings Call. (Operator Instructions)
I would now like to turn the call over to Andy Hargreaves. Please go ahead.
Thanks, Eric. Good afternoon, everyone, and thanks for joining us for our Q1 2024 earnings call. I'm very pleased to be joined today by Co-Founder, Chair and CEO, Tony Xu; and CFO, Ravi Inukonda.
We'll be making forward-looking statements during today's call, including our expectations for our business, financial position, operating performance, our guidance, strategies, capital allocation approach, and the broader economic environment. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those described. Many of these uncertainties are described in our SEC filings, including our Forms 10-K and 10-Q. You should not rely on our forward-looking statements
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
