DoorDash Releases First Quarter 2024 Financial Results
DoorDash, Inc. (NASDAQ: DASH) reported strong financial results for Q1 2024, setting new records for Total Orders, Marketplace GOV, and revenue. The company's net loss improved compared to the previous year. Key financial metrics showed significant growth, including a 23% Y/Y revenue increase to $2.5 billion and an increase in Adjusted EBITDA to $371 million. DoorDash focused on expanding local commerce, enhancing efficiency, and improving customer experience. However, the implementation of new earnings standards in Seattle and New York City negatively impacted merchant earnings and Dasher accessibility.
DoorDash achieved record Total Orders, Marketplace GOV, and revenue in Q1 2024, with Total Orders increasing 21% Y/Y to 620 million.
Adjusted EBITDA reached an all-time high of $371 million in Q1 2024, showing strong financial performance and profitability.
The company improved logistics quality, increased operational scale, and enhanced customer experience, leading to higher sales for merchants and increased earnings for Dashers.
The implementation of new earnings standards in Seattle and New York City resulted in decreased merchant earnings and reduced Dasher accessibility, impacting business operations negatively.
Although the new regulations had a minimal impact on Total Orders in Q1 2024, they posed challenges for the company in terms of serving merchants, Dashers, and consumers effectively.
Insights
In Q1 2024, we set new quarterly records for Total Orders, Marketplace GOV, and revenue, while improving our net loss compared to a year ago. An evergreen goal for us is to execute at a high level against our operational targets, as this drives incremental scale and efficiency that we can reinvest to solve new problems for merchants, consumers, and Dashers. We executed well from this perspective in Q1 2024, which helped us expand local commerce in the communities we operate in and increase our long-term growth and profit potential. We hope to continue our progress in the quarters and years to come.
First Quarter 2024 Key Financial Metrics
-
Total Orders increased
21% year-over-year (Y/Y) to 620 million and Marketplace GOV increased21% Y/Y to$19.2 billion -
Revenue increased
23% Y/Y to$2.5 billion 13.1% from12.8% in Q1 2023. -
GAAP net loss including redeemable non-controlling interests was
$25 million $162 million $371 million $204 million
|
|
Three Months Ended |
||||||||||||||||||
(in millions, except percentages) |
|
Mar. 31, 2023 |
|
Jun. 30,
|
|
Sept. 30, 2023 |
|
Dec. 31, 2023 |
|
Mar. 31, 2024 |
||||||||||
Total Orders |
|
|
512 |
|
|
|
532 |
|
|
|
543 |
|
|
|
574 |
|
|
|
620 |
|
Total Orders Y/Y growth |
|
|
27 |
% |
|
|
25 |
% |
|
|
24 |
% |
|
|
23 |
% |
|
|
21 |
% |
Marketplace GOV |
|
$ |
15,913 |
|
|
$ |
16,468 |
|
|
$ |
16,751 |
|
|
$ |
17,639 |
|
|
$ |
19,239 |
|
Marketplace GOV Y/Y growth |
|
|
29 |
% |
|
|
26 |
% |
|
|
24 |
% |
|
|
22 |
% |
|
|
21 |
% |
Revenue |
|
$ |
2,035 |
|
|
$ |
2,133 |
|
|
$ |
2,164 |
|
|
$ |
2,303 |
|
|
$ |
2,513 |
|
Revenue Y/Y growth |
|
|
40 |
% |
|
|
33 |
% |
|
|
27 |
% |
|
|
27 |
% |
|
|
23 |
% |
Net Revenue Margin |
|
|
12.8 |
% |
|
|
13.0 |
% |
|
|
12.9 |
% |
|
|
13.1 |
% |
|
|
13.1 |
% |
GAAP gross profit |
|
$ |
921 |
|
|
$ |
951 |
|
|
$ |
962 |
|
|
$ |
1,026 |
|
|
$ |
1,129 |
|
GAAP gross profit as a % of Marketplace GOV |
|
|
5.8 |
% |
|
|
5.8 |
% |
|
|
5.7 |
% |
|
|
5.8 |
% |
|
|
5.9 |
% |
Contribution Profit |
|
$ |
533 |
|
|
$ |
620 |
|
|
$ |
640 |
|
|
$ |
689 |
|
|
$ |
751 |
|
Contribution Profit as a % of Marketplace GOV |
|
|
3.3 |
% |
|
|
3.8 |
% |
|
|
3.8 |
% |
|
|
3.9 |
% |
|
|
3.9 |
% |
GAAP net loss including redeemable non-controlling interests |
|
$ |
(162 |
) |
|
$ |
(172 |
) |
|
$ |
(75 |
) |
|
$ |
(156 |
) |
|
$ |
(25 |
) |
GAAP net loss including redeemable non-controlling interests as a % of Marketplace GOV |
|
|
(1.0 |
)% |
|
|
(1.0 |
)% |
|
|
(0.4 |
)% |
|
|
(0.9 |
)% |
|
|
(0.1 |
)% |
Adjusted EBITDA |
|
$ |
204 |
|
|
$ |
279 |
|
|
$ |
344 |
|
|
$ |
363 |
|
|
$ |
371 |
|
Adjusted EBITDA as a % of Marketplace GOV |
|
|
1.3 |
% |
|
|
1.7 |
% |
|
|
2.1 |
% |
|
|
2.1 |
% |
|
|
1.9 |
% |
Basic shares, options and RSUs outstanding as of period end |
|
|
444 |
|
|
|
449 |
|
|
|
450 |
|
|
|
450 |
|
|
|
450 |
|
Our Performance
In Q1 2024, we improved logistics quality and efficiency and drove incremental operational scale, much of which we used to expand the selection we offer, improve average affordability, and further increase delivery speed and quality. In the vast majority of communities we operate in, our solid execution contributed to greater choice for consumers, higher sales for merchants, increased earnings for Dashers, and improved profitability in our business.
We continued to increase selection on our DoorDash Marketplace and our Wolt Marketplace (the "Marketplaces") in Q1 2024, both inside and outside of the restaurant category. We also continued working to improve affordability, increase delivery speed, and lower error rates. Progress in these areas is rarely linear and can seem slow at times, but the impact from our work continues to compound, and over the last two years, we have significantly reduced average delivery time, defect rate, and net consumer fees per order1 on our DoorDash Marketplace. We believe these efforts are contributing to a steadily improving consumer experience that contributed directly to the Y/Y and quarter-over-quarter (Q/Q) increases in consumers, DashPass members, and average engagement on our Marketplaces in Q1 2024.
In Q1 2024, Total Orders increased
Revenue increased
GAAP cost of revenue, exclusive of depreciation and amortization, was
GAAP gross profit as a percentage of Marketplace GOV was
GAAP sales and marketing expense was
GAAP research and development expense was
GAAP general and administrative expense was
The combination of growth in revenue and disciplined fixed cost management drove an improvement in GAAP net loss including redeemable non-controlling interests to
Q1 2024 Adjusted EBITDA reached an all-time high of
In Q1 2024, we generated net cash provided by operating activities of
A Policy Note
In order for our business to succeed, we must provide attractive earnings opportunities to Dashers. While the new earnings standards in
Although the new regulations are negatively impacting our ability to serve merchants, Dashers, and consumers in
On a more productive note, we recently launched a first-of-its-kind six-month pilot program to test portable benefits for eligible Dashers in
____________________
1 |
Net consumer fee includes service fees, delivery fees, small order, and legislative fees, net of DoorDash funded discounts and promotions on fees. |
|
2 |
On a pro forma basis, including results from Wolt for all periods. |
|
3 |
We do not report Marketplace GOV from Platform Services orders, as these services support order volume that is generated by first party platforms that are owned and operated by our merchant partners. |
|
4 |
Q4 2023 GAAP net loss including redeemable non-controlling interests included an impairment charge of |
Financial Outlook
Period |
Marketplace GOV |
Adj. EBITDA |
Q2 |
|
|
Based on our current outlook and assuming a stock price in line with recent trading levels, we expect:
-
2024 stock-based compensation to be in a range of
$1.1 billion $1.2 billion - 2024 RSU issuances of 6.0 million to 7.0 million, net of expected forfeitures, and
-
2024 depreciation and amortization expense of approximately
$560 million $590 million
Our outlook assumes that key foreign currency rates remain relatively stable at current levels. Our outlook also anticipates significant levels of ongoing investment in new categories and international markets. We caution investors that consumer spending in any of our geographies could deteriorate relative to our outlook, which could drive results below our expectations. Additionally, our increasing international exposure heightens risks associated with operating in foreign markets, including geopolitical and currency risks. Changes in the international operating environment could negatively impact results versus our current outlook.
We have not provided GAAP net loss including redeemable non-controlling interests outlook or a reconciliation of Adjusted EBITDA outlook to GAAP net loss including redeemable non-controlling interests as a result of the uncertainty regarding, and the potential variability of, reconciling items such as taxes and other items. Accordingly, a reconciliation of Adjusted EBITDA outlook to GAAP net loss including redeemable non-controlling interests is not available without unreasonable effort. However, it is important to note that material changes to reconciling items could have a significant effect on future GAAP results. We have provided historical reconciliations of GAAP to non-GAAP metrics in tables at the end of this release. For more information regarding the non-GAAP financial measures discussed in this release, please see "Non-GAAP Financial Measures" below.
Analyst and Investor Conference Call and Earnings Webcast
DoorDash will host a conference call and webcast to discuss our quarterly results today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). Those interested in listening to the call can register and attend by visiting our Investor Relations page at https://ir.doordash.com. An archived webcast will be available on our Investor Relations page shortly after the call.
Available Information
We announce material information to the public about us, our products and services, and other matters through a variety of means, including filings with the
Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” "aim," “will,” “should,” “expect,” “plan,” "try," “anticipate,” “could,” “would,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategies, plans, or intentions. Forward-looking statements in this release include, but are not limited to, our expectations regarding our financial position and operating performance, including our outlook and guidance for the second quarter of 2024, our expectations regarding our international and new verticals businesses, our plans and expectations regarding our investment approach, our expectations regarding our local commerce opportunity, the impact of policy and regulatory developments on our business, stock-based compensation expenses, expenses related to Dashers and Dasher acquisition, trends in our business, and demand for our platform and for local commerce platforms in general, and our plans and expectations regarding share dilution, including equity award issuances. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including risks and uncertainties related to: competition, managing our growth and corporate culture, financial performance, investments in new geographies, products, or offerings, our ability to attract merchants, consumers, and Dashers to our platform, legal proceedings and regulatory matters and developments, any future changes to our business or our financial or operating model, and our brand and reputation. The forward-looking statements contained in this release are also subject to other risks and uncertainties that could cause actual results to differ from the results predicted, including those more fully described in our filings with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2023 and our quarterly reports on Form 10-Q. All forward-looking statements in this release are based on information available to DoorDash and assumptions and beliefs as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law.
Use of Non-GAAP Financial Measures
To supplement our financial information presented in accordance with accounting principles generally accepted in
We define adjusted cost of revenue as cost of revenue, exclusive of depreciation and amortization, excluding stock-based compensation expense and certain payroll tax expense, allocated overhead, and inventory write-off related to restructuring. Allocated overhead is determined based on an allocation of shared costs, such as facilities (including rent and utilities) and information technology costs, among all departments based on employee headcount. We define adjusted sales and marketing expense as sales and marketing expenses excluding stock-based compensation expense and certain payroll tax expense, and allocated overhead. We define adjusted research and development expense as research and development expenses excluding stock-based compensation expense and certain payroll tax expense, and allocated overhead. We define adjusted general and administrative expense as general and administrative expenses excluding stock-based compensation expense and certain payroll tax expense, certain legal, tax, and regulatory settlements, reserves, and expenses, transaction-related costs (primarily consists of acquisition, integration, and investment related costs), impairment expenses, and including allocated overhead from cost of revenue, sales and marketing, and research and development.
We define Adjusted Gross Profit as gross profit plus (i) depreciation and amortization expense related to cost of revenue, (ii) stock-based compensation expense and certain payroll tax expense included in cost of revenue, (iii) allocated overhead included in cost of revenue, and (iv) inventory write-off related to restructuring. Gross profit is defined as revenue less (i) cost of revenue, exclusive of depreciation and amortization and (ii) depreciation and amortization related to cost of revenue. Adjusted Gross Margin is defined as Adjusted Gross Profit as a percentage of revenue for the same period.
We define Contribution Profit as our gross profit less sales and marketing expense plus (i) depreciation and amortization expense related to cost of revenue, (ii) stock-based compensation expense and certain payroll tax expense included in cost of revenue and sales and marketing expenses, (iii) allocated overhead included in cost of revenue and sales and marketing expenses, and (iv) inventory write-off related to restructuring. We define gross margin as gross profit as a percentage of revenue for the same period and we define Contribution Margin as Contribution Profit as a percentage of revenue for the same period.
Adjusted EBITDA is a measure that we use to assess our operating performance and the operating leverage in our business. We define Adjusted EBITDA as net income (loss) including redeemable non-controlling interests, adjusted to exclude (i) certain legal, tax, and regulatory settlements, reserves, and expenses, (ii) loss on disposal of property and equipment, (iii) transaction-related costs (primarily consists of acquisition, integration, and investment related costs), (iv) impairment expenses, (v) restructuring charges, (vi) inventory write-off related to restructuring, (vii) provision for (benefit from) income taxes, (viii) interest income, net, (ix) other expense, net, (x) stock-based compensation expense and certain payroll tax expense, and (xi) depreciation and amortization expense.
We define Free Cash Flow as cash flows from operating activities less purchases of property and equipment and capitalized software and website development costs.
We define Total Orders as all orders completed through our marketplaces and platform services businesses over the period of measurement.
We define Marketplace GOV as the total dollar value of orders completed on our marketplaces, including taxes, tips, and any applicable consumer fees, including membership fees related to DashPass and Wolt+. Marketplace orders include orders completed through Pickup and DoorDash for Business. Marketplace GOV does not include the dollar value of orders, taxes and tips, or fees charged to merchants, for orders fulfilled through Drive, Storefront, or Bbot.
Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Further, these metrics have certain limitations in that they do not include the impact of certain expenses that are reflected in our consolidated statements of operations. Thus, our adjusted cost of revenue, adjusted sales and marketing expense, adjusted research and development expense, adjusted general and administrative expense, Adjusted Gross Profit, Adjusted Gross Margin, Contribution Profit, Contribution Margin, Adjusted EBITDA, and Free Cash Flow should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.
DOORDASH, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in millions) (Unaudited) |
|||||||
|
December 31, 2023 |
|
March 31, 2024 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
2,656 |
|
|
$ |
3,124 |
|
Short-term marketable securities |
|
1,422 |
|
|
|
1,366 |
|
Funds held at payment processors |
|
356 |
|
|
|
394 |
|
Accounts receivable, net |
|
533 |
|
|
|
546 |
|
Prepaid expenses and other current assets |
|
630 |
|
|
|
700 |
|
Total current assets |
|
5,597 |
|
|
|
6,130 |
|
Long-term restricted cash |
|
11 |
|
|
|
12 |
|
Long-term marketable securities |
|
583 |
|
|
|
646 |
|
Operating lease right-of-use assets |
|
436 |
|
|
|
448 |
|
Property and equipment, net |
|
712 |
|
|
|
705 |
|
Intangible assets, net |
|
659 |
|
|
|
621 |
|
Goodwill |
|
2,432 |
|
|
|
2,386 |
|
Non-marketable equity securities |
|
46 |
|
|
|
46 |
|
Other assets |
|
363 |
|
|
|
456 |
|
Total assets |
$ |
10,839 |
|
|
$ |
11,450 |
|
Liabilities, Redeemable Non-controlling Interests and Stockholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
216 |
|
|
$ |
203 |
|
Operating lease liabilities |
|
68 |
|
|
|
64 |
|
Accrued expenses and other current liabilities |
|
3,126 |
|
|
|
3,476 |
|
Total current liabilities |
|
3,410 |
|
|
|
3,743 |
|
Operating lease liabilities |
|
454 |
|
|
|
483 |
|
Other liabilities |
|
162 |
|
|
|
214 |
|
Total liabilities |
|
4,026 |
|
|
|
4,440 |
|
Redeemable non-controlling interests |
|
7 |
|
|
|
11 |
|
Stockholders’ equity: |
|
|
|
||||
Common stock |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
11,887 |
|
|
|
12,177 |
|
Accumulated other comprehensive income (loss) |
|
73 |
|
|
|
(1 |
) |
Accumulated deficit |
|
(5,154 |
) |
|
|
(5,177 |
) |
Total stockholders’ equity |
|
6,806 |
|
|
|
6,999 |
|
Total liabilities, redeemable non-controlling interests and stockholders’ equity |
$ |
10,839 |
|
|
$ |
11,450 |
|
DOORDASH, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except share amounts which are reflected in thousands, and per share data) (Unaudited) |
|||||||
|
Three Months Ended March 31, |
||||||
|
2023 |
|
2024 |
||||
Revenue |
$ |
2,035 |
|
|
$ |
2,513 |
|
Costs and expenses: |
|
|
|
||||
Cost of revenue, exclusive of depreciation and amortization shown separately below |
|
1,069 |
|
|
|
1,330 |
|
Sales and marketing |
|
496 |
|
|
|
504 |
|
Research and development |
|
231 |
|
|
|
279 |
|
General and administrative |
|
285 |
|
|
|
319 |
|
Depreciation and amortization |
|
123 |
|
|
|
142 |
|
Restructuring charges |
|
2 |
|
|
|
— |
|
Total costs and expenses |
|
2,206 |
|
|
|
2,574 |
|
Loss from operations |
|
(171 |
) |
|
|
(61 |
) |
Interest income, net |
|
27 |
|
|
|
45 |
|
Other expense, net |
|
(1 |
) |
|
|
(2 |
) |
Loss before income taxes |
|
(145 |
) |
|
|
(18 |
) |
Provision for income taxes |
|
17 |
|
|
|
7 |
|
Net loss including redeemable non-controlling interests |
|
(162 |
) |
|
|
(25 |
) |
Less: net loss attributable to redeemable non-controlling interests |
|
(1 |
) |
|
|
(2 |
) |
Net loss attributable to DoorDash, Inc. common stockholders |
$ |
(161 |
) |
|
$ |
(23 |
) |
Net loss per share attributable to DoorDash, Inc. common stockholders, basic and diluted |
$ |
(0.41 |
) |
|
$ |
(0.06 |
) |
Weighted-average number of shares outstanding used to compute net loss per share attributable to DoorDash, Inc. common stockholders, basic and diluted |
|
390,397 |
|
|
|
405,482 |
|
DOORDASH, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (Unaudited) |
|||||||
|
Three Months Ended March 31, |
||||||
|
2023 |
|
2024 |
||||
Cash flows from operating activities |
|
|
|
||||
Net loss including redeemable non-controlling interests |
$ |
(162 |
) |
|
$ |
(25 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
123 |
|
|
|
142 |
|
Stock-based compensation |
|
230 |
|
|
|
252 |
|
Reduction of operating lease right-of-use assets and accretion of operating lease liabilities |
|
32 |
|
|
|
26 |
|
Other |
|
4 |
|
|
|
14 |
|
Changes in assets and liabilities: |
|
|
|
||||
Funds held at payment processors |
|
151 |
|
|
|
(41 |
) |
Accounts receivable, net |
|
17 |
|
|
|
(18 |
) |
Prepaid expenses and other current assets |
|
(75 |
) |
|
|
(22 |
) |
Other assets |
|
(8 |
) |
|
|
(49 |
) |
Accounts payable |
|
61 |
|
|
|
(12 |
) |
Accrued expenses and other current liabilities |
|
51 |
|
|
|
306 |
|
Payments for operating lease liabilities |
|
(32 |
) |
|
|
(27 |
) |
Other liabilities |
|
5 |
|
|
|
7 |
|
Net cash provided by operating activities |
|
397 |
|
|
|
553 |
|
Cash flows from investing activities |
|
|
|
||||
Purchases of property and equipment |
|
(39 |
) |
|
|
(17 |
) |
Capitalized software and website development costs |
|
(42 |
) |
|
|
(49 |
) |
Purchases of marketable securities |
|
(434 |
) |
|
|
(529 |
) |
Maturities of marketable securities |
|
504 |
|
|
|
528 |
|
Sales of marketable securities |
|
2 |
|
|
|
4 |
|
Other investing activities |
|
(1 |
) |
|
|
(9 |
) |
Net cash used in investing activities |
|
(10 |
) |
|
|
(72 |
) |
Cash flows from financing activities |
|
|
|
||||
Proceeds from exercise of stock options |
|
2 |
|
|
|
1 |
|
Repurchase of common stock |
|
(392 |
) |
|
|
— |
|
Other financing activities |
|
— |
|
|
|
6 |
|
Net cash provided by (used in) financing activities |
|
(390 |
) |
|
|
7 |
|
Foreign currency effect on cash, cash equivalents, and restricted cash |
|
1 |
|
|
|
(13 |
) |
Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
(2 |
) |
|
|
475 |
|
Cash, cash equivalents, and restricted cash |
|
|
|
||||
Cash, cash equivalents, and restricted cash, beginning of period |
|
2,188 |
|
|
|
2,772 |
|
Cash, cash equivalents, and restricted cash, end of period |
$ |
2,186 |
|
|
$ |
3,247 |
|
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets |
|
|
|
||||
Cash and cash equivalents |
$ |
1,833 |
|
|
$ |
3,124 |
|
Restricted cash included in prepaid expenses and other current assets |
|
75 |
|
|
|
111 |
|
Long-term restricted cash |
|
278 |
|
|
|
12 |
|
Total cash, cash equivalents, and restricted cash |
$ |
2,186 |
|
|
$ |
3,247 |
|
Non-cash investing and financing activities |
|
|
|
||||
Purchases of property and equipment not yet settled |
$ |
27 |
|
|
$ |
16 |
|
Stock-based compensation included in capitalized software and website development costs |
$ |
35 |
|
|
$ |
37 |
|
DOORDASH, INC. NON-GAAP FINANCIAL MEASURES (Unaudited) |
||||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||
(In millions) |
|
Mar. 31, 2023 |
|
Jun. 30, 2023 |
|
Sept. 30, 2023 |
|
Dec. 31, 2023 |
|
Mar. 31, 2024 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of revenue, exclusive of depreciation and amortization |
|
$ |
1,069 |
|
|
$ |
1,135 |
|
|
$ |
1,156 |
|
|
$ |
1,229 |
|
|
$ |
1,330 |
|
Adjusted to exclude the following: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Stock-based compensation expense and certain payroll tax expense |
|
|
(24 |
) |
|
|
(43 |
) |
|
|
(37 |
) |
|
|
(36 |
) |
|
|
(33 |
) |
Allocated overhead |
|
|
(9 |
) |
|
|
(8 |
) |
|
|
(8 |
) |
|
|
(7 |
) |
|
|
(8 |
) |
Adjusted cost of revenue |
|
$ |
1,036 |
|
|
$ |
1,084 |
|
|
$ |
1,111 |
|
|
$ |
1,186 |
|
|
$ |
1,289 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Sales and marketing |
|
$ |
496 |
|
|
$ |
471 |
|
|
$ |
449 |
|
|
$ |
460 |
|
|
$ |
504 |
|
Adjusted to exclude the following: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Stock-based compensation expense and certain payroll tax expense |
|
|
(24 |
) |
|
|
(36 |
) |
|
|
(30 |
) |
|
|
(29 |
) |
|
|
(25 |
) |
Allocated overhead |
|
|
(6 |
) |
|
|
(6 |
) |
|
|
(6 |
) |
|
|
(3 |
) |
|
|
(6 |
) |
Adjusted sales and marketing |
|
$ |
466 |
|
|
$ |
429 |
|
|
$ |
413 |
|
|
$ |
428 |
|
|
$ |
473 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Research and development |
|
$ |
231 |
|
|
$ |
269 |
|
|
$ |
250 |
|
|
$ |
253 |
|
|
$ |
279 |
|
Adjusted to exclude the following: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Stock-based compensation expense and certain payroll tax expense |
|
|
(98 |
) |
|
|
(134 |
) |
|
|
(119 |
) |
|
|
(119 |
) |
|
|
(114 |
) |
Allocated overhead |
|
|
(4 |
) |
|
|
(5 |
) |
|
|
(5 |
) |
|
|
(2 |
) |
|
|
(5 |
) |
Adjusted research and development |
|
$ |
129 |
|
|
$ |
130 |
|
|
$ |
126 |
|
|
$ |
132 |
|
|
$ |
160 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
General and administrative |
|
$ |
285 |
|
|
$ |
341 |
|
|
$ |
289 |
|
|
$ |
320 |
|
|
$ |
319 |
|
Adjusted to exclude the following: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Stock-based compensation expense and certain payroll tax expense |
|
|
(84 |
) |
|
|
(99 |
) |
|
|
(94 |
) |
|
|
(88 |
) |
|
|
(83 |
) |
Certain legal, tax, and regulatory settlements, reserves, and expenses(1) |
|
|
(19 |
) |
|
|
(49 |
) |
|
|
(44 |
) |
|
|
(50 |
) |
|
|
(35 |
) |
Transaction-related costs |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Allocated overhead from cost of revenue, sales and marketing, and research and development |
|
|
19 |
|
|
|
19 |
|
|
|
19 |
|
|
|
12 |
|
|
|
19 |
|
Adjusted general and administrative |
|
$ |
200 |
|
|
$ |
211 |
|
|
$ |
170 |
|
|
$ |
194 |
|
|
$ |
220 |
|
(1) |
We exclude certain costs and expenses from our calculation of adjusted general and administrative expense because management believes that these costs and expenses are not indicative of our core operating performance, do not reflect the underlying economics of our business, and are not necessary to operate our business. These excluded costs and expenses consist of (i) certain legal costs primarily related to worker classification matters, as well as a settlement entered into in connection with an initiative to serve underrepresented communities, (ii) reserves and settlements or other resolutions for or related to the collection of sales, indirect, and other taxes that we do not expect to incur on a recurring basis, (iii) expenses related to supporting various policy matters, including those related to worker classification, other labor law matters, and price controls, and (iv) donations as part of our relief efforts in connection with the COVID-19 pandemic. We believe it is appropriate to exclude the foregoing matters from our calculation of adjusted general and administrative expense because (1) the timing and magnitude of such expenses are unpredictable and thus not part of management’s budgeting or forecasting process, and (2) with respect to worker classification matters, management currently expects such expenses will not be material to our results of operations over the long term as a result of increasing legislative and regulatory certainty in this area, including as a result of Proposition 22 in |
|
|
Three Months Ended |
||||||||||||||||||
(In millions, except percentages) |
|
Mar. 31, 2023 |
|
Jun. 30, 2023 |
|
Sept. 30, 2023 |
|
Dec. 31, 2023 |
|
Mar. 31, 2024 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue |
|
$ |
2,035 |
|
|
$ |
2,133 |
|
|
$ |
2,164 |
|
|
$ |
2,303 |
|
|
$ |
2,513 |
|
Less: Cost of revenue, exclusive of depreciation and amortization |
|
|
(1,069 |
) |
|
|
(1,135 |
) |
|
|
(1,156 |
) |
|
|
(1,229 |
) |
|
|
(1,330 |
) |
Less: Depreciation and amortization related to cost of revenue |
|
|
(45 |
) |
|
|
(47 |
) |
|
|
(46 |
) |
|
|
(48 |
) |
|
|
(54 |
) |
Gross profit |
|
$ |
921 |
|
|
$ |
951 |
|
|
$ |
962 |
|
|
$ |
1,026 |
|
|
$ |
1,129 |
|
Gross Margin |
|
|
45.3 |
% |
|
|
44.6 |
% |
|
|
44.5 |
% |
|
|
44.6 |
% |
|
|
44.9 |
% |
Less: Sales and marketing |
|
|
(496 |
) |
|
|
(471 |
) |
|
|
(449 |
) |
|
|
(460 |
) |
|
|
(504 |
) |
Add: Depreciation and amortization related to cost of revenue |
|
|
45 |
|
|
|
47 |
|
|
|
46 |
|
|
|
48 |
|
|
|
54 |
|
Add: Stock-based compensation expense and certain payroll tax expense included in cost of revenue and sales and marketing |
|
|
48 |
|
|
|
79 |
|
|
|
67 |
|
|
|
65 |
|
|
|
58 |
|
Add: Allocated overhead included in cost of revenue and sales and marketing |
|
|
15 |
|
|
|
14 |
|
|
|
14 |
|
|
|
10 |
|
|
|
14 |
|
Contribution Profit |
|
$ |
533 |
|
|
$ |
620 |
|
|
$ |
640 |
|
|
$ |
689 |
|
|
$ |
751 |
|
Contribution Margin |
|
|
26.2 |
% |
|
|
29.1 |
% |
|
|
29.6 |
% |
|
|
29.9 |
% |
|
|
29.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended |
||||||||||||||||||
(In millions, except percentages) |
|
Mar. 31, 2023 |
|
Jun. 30, 2023 |
|
Sept. 30, 2023 |
|
Dec. 31, 2023 |
|
Mar. 31, 2024 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross profit |
|
$ |
921 |
|
|
$ |
951 |
|
|
$ |
962 |
|
|
$ |
1,026 |
|
|
$ |
1,129 |
|
Add: Depreciation and amortization related to cost of revenue |
|
|
45 |
|
|
|
47 |
|
|
|
46 |
|
|
|
48 |
|
|
|
54 |
|
Add: Stock-based compensation expense and certain payroll tax expense included in cost of revenue |
|
|
24 |
|
|
|
43 |
|
|
|
37 |
|
|
|
36 |
|
|
|
33 |
|
Add: Allocated overhead included in cost of revenue |
|
|
9 |
|
|
|
8 |
|
|
|
8 |
|
|
|
7 |
|
|
|
8 |
|
Adjusted Gross Profit |
|
$ |
999 |
|
|
$ |
1,049 |
|
|
$ |
1,053 |
|
|
$ |
1,117 |
|
|
$ |
1,224 |
|
Adjusted Gross Margin |
|
|
49.1 |
% |
|
|
49.2 |
% |
|
|
48.7 |
% |
|
|
48.5 |
% |
|
|
48.7 |
% |
|
|
Three Months Ended |
||||||||||||||||||
(In millions) |
|
Mar. 31, 2023 |
|
Jun. 30, 2023 |
|
Sept. 30, 2023 |
|
Dec. 31, 2023 |
|
Mar. 31, 2024 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net loss including redeemable non-controlling interests |
|
$ |
(162 |
) |
|
$ |
(172 |
) |
|
$ |
(75 |
) |
|
$ |
(156 |
) |
|
$ |
(25 |
) |
Certain legal, tax, and regulatory settlements, reserves, and expenses(1) |
|
|
19 |
|
|
|
49 |
|
|
|
44 |
|
|
|
50 |
|
|
|
35 |
|
Transaction-related costs |
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Restructuring charges |
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Provision for (benefit from) income taxes |
|
|
17 |
|
|
|
(9 |
) |
|
|
6 |
|
|
|
17 |
|
|
|
7 |
|
Interest income, net |
|
|
(27 |
) |
|
|
(34 |
) |
|
|
(40 |
) |
|
|
(51 |
) |
|
|
(45 |
) |
Other expense, net |
|
|
1 |
|
|
|
4 |
|
|
|
1 |
|
|
|
101 |
|
|
|
2 |
|
Stock-based compensation expense and certain payroll tax expense |
|
|
230 |
|
|
|
312 |
|
|
|
280 |
|
|
|
272 |
|
|
|
255 |
|
Depreciation and amortization expense |
|
|
123 |
|
|
|
128 |
|
|
|
128 |
|
|
|
130 |
|
|
|
142 |
|
Adjusted EBITDA |
|
$ |
204 |
|
|
$ |
279 |
|
|
$ |
344 |
|
|
$ |
363 |
|
|
$ |
371 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(1) |
We exclude certain costs and expenses from our calculation of Adjusted EBITDA because management believes that these costs and expenses are not indicative of our core operating performance, do not reflect the underlying economics of our business, and are not necessary to operate our business. These excluded costs and expenses consist of (i) certain legal costs primarily related to worker classification matters, as well as a settlement entered into in connection with an initiative to serve underrepresented communities, (ii) reserves and settlements or other resolutions for or related to the collection of sales, indirect, and other taxes that we do not expect to incur on a recurring basis, (iii) expenses related to supporting various policy matters, including those related to worker classification, other labor law matters, and price controls, and (iv) donations as part of our relief efforts in connection with the COVID-19 pandemic. We believe it is appropriate to exclude the foregoing matters from our calculation of Adjusted EBITDA because (1) the timing and magnitude of such expenses are unpredictable and thus not part of management’s budgeting or forecasting process, and (2) with respect to worker classification matters, management currently expects such expenses will not be material to our results of operations over the long term as a result of increasing legislative and regulatory certainty in this area, including as a result of Proposition 22 in |
Estimate of Certain Components of Stock-Based Compensation Expense
(in millions) |
|
2023 (Actuals) |
|
2024 |
|
2025 |
|
2026 |
||||
|
|
|
|
|
|
|
|
|
||||
CEO performance award(1) |
|
$ |
104 |
|
$ |
67 |
|
$ |
7 |
|
$ |
— |
Wolt retention and revesting |
|
|
150 |
|
|
144 |
|
|
138 |
|
|
53 |
Pre-IPO RSUs: amortization of stepped-up value(2) |
|
|
67 |
|
|
51 |
|
|
3 |
|
|
— |
New hire, continuing employee, and other grants |
|
|
767 |
|
|
838 - 938 |
|
NA |
|
NA |
||
Total stock-based compensation |
|
$ |
1,088 |
|
|
|
NA |
|
NA |
|||
(1) |
In November 2020, our board of directors granted restricted stock units ("RSUs") to our Chief Executive Officer, Tony Xu, covering 10,379,000 shares of our Class A common stock, which we refer to here as the 2020 CEO Performance Award. The award is intended to be the exclusive equity award to Mr. Xu over a seven year performance period, which ends November 23, 2027. The award has nine tranches that are eligible to vest based on the achievement of stock price goals ranging from |
|
(2) |
Certain RSUs awarded prior to or around the time of our initial public offering have grant-date fair values that significantly exceed the fair value of the awards (“409A value”) prevailing at the time they were committed to employees. The amounts included here represent the stock-based compensation associated with the excess amount of the grant-date fair value over the 409A value. |
Reconciliation of net cash provided by operating activities to Free Cash Flow
|
|
Trailing Twelve Months Ended |
||||||||||||||||||
(in millions) |
|
Mar. 31, 2023 |
|
Jun. 30, 2023 |
|
Sept. 30, 2023 |
|
Dec. 31, 2023 |
|
Mar. 31, 2024 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by operating activities |
|
$ |
784 |
|
|
$ |
1,012 |
|
|
$ |
1,211 |
|
|
$ |
1,673 |
|
|
$ |
1,829 |
|
Purchases of property and equipment |
|
|
(183 |
) |
|
|
(165 |
) |
|
|
(139 |
) |
|
|
(123 |
) |
|
|
(101 |
) |
Capitalized software and website development costs |
|
|
(173 |
) |
|
|
(194 |
) |
|
|
(194 |
) |
|
|
(201 |
) |
|
|
(208 |
) |
Free Cash Flow |
|
$ |
428 |
|
|
$ |
653 |
|
|
$ |
878 |
|
|
$ |
1,349 |
|
|
$ |
1,520 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240501384973/en/
IR Contact:
ir@doordash.com
PR Contact:
press@doordash.com
Source: DoorDash
FAQ
What were DoorDash's Total Orders in Q1 2024?
What was DoorDash's revenue growth in Q1 2024?
What was the Adjusted EBITDA in Q1 2024?
How did DoorDash's financial performance compare to the previous year?
How did new earnings standards impact DoorDash's operations?
