DoorDash Releases Second Quarter 2023 Financial Results
- Strong growth in Total Orders, Marketplace GOV, and revenue
- All-time high Adjusted EBITDA of $279 million
- Steady improvement in quality of consumer, merchant, and Dasher experience
- Gained share in U.S. restaurant, convenience, and grocery categories
- GAAP net loss including redeemable non-controlling interests of $172 million
- Increased GAAP sales and marketing expense to $471 million in Q2 2023
Q2 2023 was our best quarter ever for Total Orders, Marketplace GOV, and revenue. At the same time, we maintained our focus on operational efficiency and disciplined expense management, which drove an improvement to our Q2 2023 GAAP net loss including redeemable non-controlling interests versus Q2 2022 and contributed to all-time high Adjusted EBITDA. We are excited by our progress so far in 2023 and are already hard at work building more features, tools, and services that can improve local commerce.
Second Quarter 2023 Key Financial Metrics
-
Total Orders increased
25% Y/Y to 532 million and Marketplace GOV increased26% Y/Y to .$16.5 billion -
Revenue increased
33% Y/Y to and Net Revenue Margin increased to$2.1 billion 13.0% from12.3% in Q2 2022. -
GAAP net loss including redeemable non-controlling interests was
compared to$172 million in Q2 2022, and Adjusted EBITDA increased to$263 million from$279 million in Q2 2022.$103 million
|
|
Three Months Ended |
||||||||||||||||||
(in millions, except percentages) |
|
Jun. 30, 2022 |
|
Sept. 30, 2022 |
|
Dec. 31, 2022 |
|
Mar. 31, 2023 |
|
Jun. 30,
|
||||||||||
Total Orders |
|
|
426 |
|
|
|
439 |
|
|
|
467 |
|
|
|
512 |
|
|
|
532 |
|
Total Orders Y/Y growth |
|
|
23 |
% |
|
|
27 |
% |
|
|
27 |
% |
|
|
27 |
% |
|
|
25 |
% |
Marketplace GOV |
|
$ |
13,081 |
|
|
$ |
13,534 |
|
|
$ |
14,446 |
|
|
$ |
15,913 |
|
|
$ |
16,468 |
|
Marketplace GOV Y/Y growth |
|
|
25 |
% |
|
|
30 |
% |
|
|
29 |
% |
|
|
29 |
% |
|
|
26 |
% |
Revenue |
|
$ |
1,608 |
|
|
$ |
1,701 |
|
|
$ |
1,818 |
|
|
$ |
2,035 |
|
|
$ |
2,133 |
|
Revenue Y/Y growth |
|
|
30 |
% |
|
|
33 |
% |
|
|
40 |
% |
|
|
40 |
% |
|
|
33 |
% |
Net Revenue Margin |
|
|
12.3 |
% |
|
|
12.6 |
% |
|
|
12.6 |
% |
|
|
12.8 |
% |
|
|
13.0 |
% |
GAAP Gross Profit |
|
$ |
686 |
|
|
$ |
714 |
|
|
$ |
762 |
|
|
$ |
921 |
|
|
$ |
951 |
|
GAAP Gross Profit as a % of Marketplace GOV |
|
|
5.2 |
% |
|
|
5.3 |
% |
|
|
5.3 |
% |
|
|
5.8 |
% |
|
|
5.8 |
% |
Contribution Profit |
|
$ |
381 |
|
|
$ |
420 |
|
|
$ |
447 |
|
|
$ |
533 |
|
|
$ |
620 |
|
Contribution Profit as a % of Marketplace GOV |
|
|
2.9 |
% |
|
|
3.1 |
% |
|
|
3.1 |
% |
|
|
3.3 |
% |
|
|
3.8 |
% |
GAAP Net Loss including redeemable non-controlling interests |
|
$ |
(263 |
) |
|
$ |
(296 |
) |
|
$ |
(642 |
) |
|
$ |
(162 |
) |
|
$ |
(172 |
) |
GAAP Net Loss including redeemable non-controlling interests as a % of Marketplace GOV |
|
|
(2.0 |
)% |
|
|
(2.2 |
)% |
|
|
(4.4 |
)% |
|
|
(1.0 |
)% |
|
|
(1.0 |
)% |
Adjusted EBITDA |
|
$ |
103 |
|
|
$ |
87 |
|
|
$ |
117 |
|
|
$ |
204 |
|
|
$ |
279 |
|
Adjusted EBITDA as a % of Marketplace GOV |
|
|
0.8 |
% |
|
|
0.6 |
% |
|
|
0.8 |
% |
|
|
1.3 |
% |
|
|
1.7 |
% |
Basic shares, options and RSUs outstanding as of period end |
|
|
448 |
|
|
|
446 |
|
|
|
452 |
|
|
|
444 |
|
|
|
449 |
|
Our Performance in Q2 2023
We focus on steadily improving the quality of experience we offer to consumers, merchants, and Dashers. The cumulative impact of these improvements, along with effective execution and durable end markets, drove strong growth and improved efficiency in Q2 2023. On a reported basis in Q2 2023, we drove Total Orders up
On a pro forma basis, including the results from Wolt for both periods, Y/Y growth in Total Orders accelerated slightly in Q2 2023 compared to Q1 2023, driven by stable Y/Y growth in our
Total Orders from Platform Services grew modestly on a Y/Y basis in Q2 2023. However, merchant demand for our services has remained strong. We expect this to contribute to accelerated Y/Y growth in Total Orders and revenue in Platform Services in the second half of 2023, as we anniversary the end of a large partnership.
In addition to strong growth in Total Orders and Marketplace GOV in Q2 2023, improvements to logistics quality and efficiency and a growing contribution from advertising helped drive revenue up
The combination of continued efficiency gains in our
GAAP sales and marketing expense increased to
We continued to manage operating expenses with discipline in Q2 2023. Combined, GAAP research and development expenses and GAAP general and administrative expenses were
Operating cash flow in Q2 2023 was
In February 2023, our board of directors authorized the repurchase of up to
Financial Outlook
Period |
Marketplace GOV |
Adj. EBITDA |
Q3 |
|
|
2023 |
|
|
Additionally, we currently expect stock-based compensation expense for the second half of 2023 to be between
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 outlook or a reconciliation of Adjusted EBITDA to GAAP net loss 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 to GAAP net loss 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 SEC, press releases, public conference calls, webcasts, the investor relations section of our website (ir.doordash.com), our blog (doordash.news), and our Twitter account (@DoorDash) in order to achieve broad, non-exclusionary distribution of information to the public and for complying with our disclosure obligations under Regulation FD.
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,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “would,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” "aim", "try", “predict,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, 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 future periods, our expectations regarding the Wolt business and our international business, our plans and expectations regarding our investment approach, our ability to manage our expenses, our expectations regarding our local commerce opportunity, trends in our business, including the effect of the macroeconomic environment, Dasher acquisition costs, consumer spending, and demand for our platform and for local commerce platforms in general, and our plans and expectations regarding share dilution, including our share repurchase authorization, and our ability to manage dilution. 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, including our ability to forecast our performance due to our limited operating history, 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, 2022 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
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 Work. 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.
We define Net Revenue Margin as revenue expressed as a percentage of Marketplace GOV.
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 condensed 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, Contribution Profit, Contribution Margin, Adjusted Gross Profit, Adjusted Gross 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,
|
|
June 30,
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
1,977 |
|
|
$ |
1,904 |
|
Short-term marketable securities |
|
1,544 |
|
|
|
1,552 |
|
Funds held at payment processors |
|
441 |
|
|
|
297 |
|
Accounts receivable, net |
|
400 |
|
|
|
383 |
|
Prepaid expenses and other current assets |
|
358 |
|
|
|
469 |
|
Total current assets |
|
4,720 |
|
|
|
4,605 |
|
Long-term restricted cash |
|
211 |
|
|
|
144 |
|
Long-term marketable securities |
|
397 |
|
|
|
381 |
|
Operating lease right-of-use assets |
|
436 |
|
|
|
417 |
|
Property and equipment, net |
|
637 |
|
|
|
677 |
|
Intangible assets, net |
|
765 |
|
|
|
708 |
|
Goodwill |
|
2,370 |
|
|
|
2,396 |
|
Non-marketable equity securities |
|
124 |
|
|
|
142 |
|
Other assets |
|
129 |
|
|
|
131 |
|
Total assets |
$ |
9,789 |
|
|
$ |
9,601 |
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
157 |
|
|
$ |
173 |
|
Operating lease liabilities |
|
55 |
|
|
|
58 |
|
Accrued expenses and other current liabilities |
|
2,332 |
|
|
|
2,495 |
|
Total current liabilities |
|
2,544 |
|
|
|
2,726 |
|
Operating lease liabilities |
|
456 |
|
|
|
440 |
|
Other liabilities |
|
21 |
|
|
|
28 |
|
Total liabilities |
|
3,021 |
|
|
|
3,194 |
|
Redeemable non-controlling interests |
|
14 |
|
|
|
11 |
|
Stockholders’ equity: |
|
|
|
||||
Common stock |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
10,633 |
|
|
|
11,257 |
|
Accumulated other comprehensive (loss) income |
|
(33 |
) |
|
|
9 |
|
Accumulated deficit |
|
(3,846 |
) |
|
|
(4,870 |
) |
Total stockholders’ equity |
|
6,754 |
|
|
|
6,396 |
|
Total liabilities, redeemable non-controlling interests and stockholders’ equity |
$ |
9,789 |
|
|
$ |
9,601 |
|
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 June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2022 |
|
2023 |
|
2022 |
|
2023 |
||||||||
Revenue |
$ |
1,608 |
|
|
$ |
2,133 |
|
|
$ |
3,064 |
|
|
$ |
4,168 |
|
Costs and expenses: |
|
|
|
|
|
|
|
||||||||
Cost of revenue, exclusive of depreciation and amortization shown separately below |
|
880 |
|
|
|
1,135 |
|
|
|
1,643 |
|
|
|
2,204 |
|
Sales and marketing |
|
421 |
|
|
|
471 |
|
|
|
835 |
|
|
|
967 |
|
Research and development |
|
205 |
|
|
|
269 |
|
|
|
353 |
|
|
|
500 |
|
General and administrative |
|
291 |
|
|
|
341 |
|
|
|
536 |
|
|
|
626 |
|
Depreciation and amortization |
|
81 |
|
|
|
128 |
|
|
|
140 |
|
|
|
251 |
|
Restructuring charges |
|
3 |
|
|
|
— |
|
|
|
3 |
|
|
|
2 |
|
Total costs and expenses |
|
1,881 |
|
|
|
2,344 |
|
|
|
3,510 |
|
|
|
4,550 |
|
Loss from operations |
|
(273 |
) |
|
|
(211 |
) |
|
|
(446 |
) |
|
|
(382 |
) |
Interest income, net |
|
4 |
|
|
|
34 |
|
|
|
5 |
|
|
|
61 |
|
Other income (expense), net |
|
(3 |
) |
|
|
(4 |
) |
|
|
2 |
|
|
|
(5 |
) |
Loss before income taxes |
|
(272 |
) |
|
|
(181 |
) |
|
|
(439 |
) |
|
|
(326 |
) |
Provision for (benefit from) income taxes |
|
(9 |
) |
|
|
(9 |
) |
|
|
(9 |
) |
|
|
8 |
|
Net loss including redeemable non-controlling interests |
|
(263 |
) |
|
|
(172 |
) |
|
|
(430 |
) |
|
|
(334 |
) |
Less: net loss attributable to redeemable non-controlling interests |
|
— |
|
|
|
(2 |
) |
|
|
— |
|
|
|
(3 |
) |
Net loss attributable to DoorDash, Inc. common stockholders |
$ |
(263 |
) |
|
$ |
(170 |
) |
|
$ |
(430 |
) |
|
$ |
(331 |
) |
Net loss per share attributable to DoorDash, Inc. common stockholders, basic and diluted |
$ |
(0.72 |
) |
|
$ |
(0.44 |
) |
|
$ |
(1.21 |
) |
|
$ |
(0.85 |
) |
Weighted-average number of shares outstanding used to compute net loss per share attributable to DoorDash, Inc. common stockholders, basic and diluted |
|
363,961 |
|
|
|
388,737 |
|
|
|
356,630 |
|
|
|
389,563 |
|
DOORDASH, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) |
|||||||
|
|
||||||
|
Six Months Ended June 30, |
||||||
|
2022 |
|
2023 |
||||
Cash flows from operating activities |
|
|
|
||||
Net loss including redeemable non-controlling interests |
$ |
(430 |
) |
|
$ |
(334 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
140 |
|
|
|
251 |
|
Stock-based compensation |
|
360 |
|
|
|
541 |
|
Reduction of operating lease right-of-use assets and accretion of operating lease liabilities |
|
35 |
|
|
|
60 |
|
Other |
|
14 |
|
|
|
19 |
|
Changes in assets and liabilities, net of assets acquired and liabilities assumed from acquisitions: |
|
|
|
||||
Funds held at payment processors |
|
109 |
|
|
|
142 |
|
Accounts receivable, net |
|
20 |
|
|
|
12 |
|
Prepaid expenses and other current assets |
|
(51 |
) |
|
|
(27 |
) |
Other assets |
|
(44 |
) |
|
|
(23 |
) |
Accounts payable |
|
38 |
|
|
|
20 |
|
Accrued expenses and other current liabilities |
|
(6 |
) |
|
|
181 |
|
Payments for operating lease liabilities |
|
(32 |
) |
|
|
(59 |
) |
Other liabilities |
|
(8 |
) |
|
|
7 |
|
Net cash provided by operating activities |
|
145 |
|
|
|
790 |
|
Cash flows from investing activities |
|
|
|
||||
Purchases of property and equipment |
|
(77 |
) |
|
|
(66 |
) |
Capitalized software and website development costs |
|
(73 |
) |
|
|
(97 |
) |
Purchases of marketable securities |
|
(1,078 |
) |
|
|
(930 |
) |
Maturities of marketable securities |
|
992 |
|
|
|
962 |
|
Sales of marketable securities |
|
245 |
|
|
|
3 |
|
Purchases of non-marketable equity securities |
|
— |
|
|
|
(16 |
) |
Net cash acquired in acquisitions |
|
71 |
|
|
|
— |
|
Other investing activities |
|
— |
|
|
|
(1 |
) |
Net cash provided by (used in) investing activities |
|
80 |
|
|
|
(145 |
) |
Cash flows from financing activities |
|
|
|
||||
Proceeds from exercise of stock options |
|
8 |
|
|
|
3 |
|
Repurchase of common stock |
|
— |
|
|
|
(693 |
) |
Other financing activities |
|
— |
|
|
|
(8 |
) |
Net cash provided by (used in) financing activities |
|
8 |
|
|
|
(698 |
) |
Foreign currency effect on cash, cash equivalents, and restricted cash |
|
(8 |
) |
|
|
(2 |
) |
Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
225 |
|
|
|
(55 |
) |
Cash, cash equivalents, and restricted cash |
|
|
|
||||
Cash, cash equivalents, and restricted cash, beginning of period |
|
2,506 |
|
|
|
2,188 |
|
Cash, cash equivalents, and restricted cash, end of period |
$ |
2,731 |
|
|
$ |
2,133 |
|
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets |
|
|
|
||||
Cash and cash equivalents |
$ |
2,727 |
|
|
$ |
1,904 |
|
Restricted cash included in prepaid expenses and other current assets |
|
— |
|
|
|
85 |
|
Long-term restricted cash |
|
4 |
|
|
|
144 |
|
Total cash, cash equivalents, and restricted cash |
$ |
2,731 |
|
|
$ |
2,133 |
|
Non-cash investing and financing activities |
|
|
|
||||
Purchases of property and equipment not yet settled |
$ |
39 |
|
|
$ |
20 |
|
Stock-based compensation included in capitalized software and website development costs |
$ |
66 |
|
|
$ |
80 |
|
DOORDASH, INC. NON-GAAP FINANCIAL MEASURES (Unaudited) |
||||||||||||||||||||
|
Three Months Ended |
|||||||||||||||||||
(In millions) |
|
Jun. 30, 2022 |
|
Sept. 30, 2022 |
|
Dec. 31,
|
|
Mar. 31, 2023 |
|
Jun. 30, 2023 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of revenue, exclusive of depreciation and amortization |
|
$ |
880 |
|
|
$ |
931 |
|
|
$ |
1,014 |
|
|
$ |
1,069 |
|
|
$ |
1,135 |
|
Adjusted to exclude the following: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Stock-based compensation expense and certain payroll tax expense |
|
|
(31 |
) |
|
|
(29 |
) |
|
|
(31 |
) |
|
|
(24 |
) |
|
|
(43 |
) |
Allocated overhead |
|
|
(8 |
) |
|
|
(7 |
) |
|
|
(8 |
) |
|
|
(9 |
) |
|
|
(8 |
) |
Inventory write-off related to restructuring |
|
|
(2 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted cost of revenue |
|
$ |
839 |
|
|
$ |
895 |
|
|
$ |
975 |
|
|
$ |
1,036 |
|
|
$ |
1,084 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Sales and marketing |
|
$ |
421 |
|
|
$ |
418 |
|
|
$ |
429 |
|
|
$ |
496 |
|
|
$ |
471 |
|
Adjusted to exclude the following: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Stock-based compensation expense and certain payroll tax expense |
|
|
(29 |
) |
|
|
(27 |
) |
|
|
(28 |
) |
|
|
(24 |
) |
|
|
(36 |
) |
Allocated overhead |
|
|
(4 |
) |
|
|
(5 |
) |
|
|
(5 |
) |
|
|
(6 |
) |
|
|
(6 |
) |
Adjusted sales and marketing |
|
$ |
388 |
|
|
$ |
386 |
|
|
$ |
396 |
|
|
$ |
466 |
|
|
$ |
429 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Research and development |
|
$ |
205 |
|
|
$ |
226 |
|
|
$ |
250 |
|
|
$ |
231 |
|
|
$ |
269 |
|
Adjusted to exclude the following: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Stock-based compensation expense and certain payroll tax expense |
|
|
(95 |
) |
|
|
(99 |
) |
|
|
(116 |
) |
|
|
(98 |
) |
|
|
(134 |
) |
Allocated overhead |
|
|
(4 |
) |
|
|
(5 |
) |
|
|
(3 |
) |
|
|
(4 |
) |
|
|
(5 |
) |
Adjusted research and development |
|
$ |
106 |
|
|
$ |
122 |
|
|
$ |
131 |
|
|
$ |
129 |
|
|
$ |
130 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
General and administrative |
|
$ |
291 |
|
|
$ |
311 |
|
|
$ |
300 |
|
|
$ |
285 |
|
|
$ |
341 |
|
Adjusted to exclude the following: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Stock-based compensation expense and certain payroll tax expense |
|
|
(76 |
) |
|
|
(96 |
) |
|
|
(93 |
) |
|
|
(84 |
) |
|
|
(99 |
) |
Certain legal, tax, and regulatory settlements, reserves, and expenses(1) |
|
|
(15 |
) |
|
|
(14 |
) |
|
|
(19 |
) |
|
|
(19 |
) |
|
|
(49 |
) |
Transaction-related costs(2) |
|
|
(44 |
) |
|
|
(7 |
) |
|
|
(3 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
Impairment expenses(3) |
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
|
|
— |
|
|
|
— |
|
Allocated overhead from cost of revenue, sales and marketing, and research and development |
|
|
16 |
|
|
|
17 |
|
|
|
16 |
|
|
|
19 |
|
|
|
19 |
|
Adjusted general and administrative |
|
$ |
172 |
|
|
$ |
211 |
|
|
$ |
199 |
|
|
$ |
200 |
|
|
$ |
211 |
|
(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, (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 and price controls, and (iv) donations as part of our relief efforts in connection with the COVID-19 pandemic and |
||
(2) |
Consists of acquisition, integration, and investment related costs, primarily related to Wolt acquisition. |
||
(3) |
Consists of impairment expense related to an operating lease right-of-use asset associated with our former headquarters |
Reconciliation of gross profit to Contribution Profit
|
Three Months Ended |
|||||||||||||||||||
(In millions, except percentages) |
|
Jun. 30, 2022 |
|
Sept. 30, 2022 |
|
Dec. 31, 2022 |
|
Mar. 31, 2023 |
|
Jun. 30, 2023 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue |
|
$ |
1,608 |
|
|
$ |
1,701 |
|
|
$ |
1,818 |
|
|
$ |
2,035 |
|
|
$ |
2,133 |
|
Less: Cost of revenue, exclusive of depreciation and amortization |
|
|
(880 |
) |
|
|
(931 |
) |
|
|
(1,014 |
) |
|
|
(1,069 |
) |
|
|
(1,135 |
) |
Less: Depreciation and amortization related to cost of revenue |
|
|
(42 |
) |
|
|
(56 |
) |
|
|
(42 |
) |
|
|
(45 |
) |
|
|
(47 |
) |
Gross profit |
|
$ |
686 |
|
|
$ |
714 |
|
|
$ |
762 |
|
|
$ |
921 |
|
|
$ |
951 |
|
Gross Margin |
|
|
42.7 |
% |
|
|
42.0 |
% |
|
|
41.9 |
% |
|
|
45.3 |
% |
|
|
44.6 |
% |
Less: Sales and marketing |
|
$ |
(421 |
) |
|
$ |
(418 |
) |
|
$ |
(429 |
) |
|
$ |
(496 |
) |
|
$ |
(471 |
) |
Add: Depreciation and amortization related to cost of revenue |
|
|
42 |
|
|
|
56 |
|
|
|
42 |
|
|
|
45 |
|
|
|
47 |
|
Add: Stock-based compensation expense and certain payroll tax expense included in cost of revenue and sales and marketing |
|
|
60 |
|
|
|
56 |
|
|
|
59 |
|
|
|
48 |
|
|
|
79 |
|
Add: Allocated overhead included in cost of revenue and sales and marketing |
|
|
12 |
|
|
|
12 |
|
|
|
13 |
|
|
|
15 |
|
|
|
14 |
|
Add: Inventory write-off related to restructuring |
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Contribution Profit |
|
$ |
381 |
|
|
$ |
420 |
|
|
$ |
447 |
|
|
$ |
533 |
|
|
$ |
620 |
|
Contribution Margin |
|
|
23.7 |
% |
|
|
24.7 |
% |
|
|
24.6 |
% |
|
|
26.2 |
% |
|
|
29.1 |
% |
Reconciliation of gross profit to Adjusted Gross Profit
|
Three Months Ended |
|||||||||||||||||||
(In millions, except percentages) |
|
Jun. 30, 2022 |
|
Sept. 30, 2022 |
|
Dec. 31, 2022 |
|
Mar. 31, 2023 |
|
Jun. 30, 2023 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross profit |
|
$ |
686 |
|
|
$ |
714 |
|
|
$ |
762 |
|
|
$ |
921 |
|
|
$ |
951 |
|
Add: Depreciation and amortization related to cost of revenue |
|
|
42 |
|
|
|
56 |
|
|
|
42 |
|
|
|
45 |
|
|
|
47 |
|
Add: Stock-based compensation expense and certain payroll tax expense included in cost of revenue |
|
|
31 |
|
|
|
29 |
|
|
|
31 |
|
|
|
24 |
|
|
|
43 |
|
Add: Allocated overhead included in cost of revenue |
|
|
8 |
|
|
|
7 |
|
|
|
8 |
|
|
|
9 |
|
|
|
8 |
|
Add: Inventory write-off related to restructuring |
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted Gross Profit |
|
$ |
769 |
|
|
$ |
806 |
|
|
$ |
843 |
|
|
$ |
999 |
|
|
$ |
1,049 |
|
Adjusted Gross Margin |
|
|
47.8 |
% |
|
|
47.4 |
% |
|
|
46.4 |
% |
|
|
49.1 |
% |
|
|
49.2 |
% |
Reconciliation of net loss including redeemable non-controlling interests to Adjusted EBITDA
|
Three Months Ended |
|||||||||||||||||||
(In millions) |
|
Jun. 30, 2022 |
|
Sept. 30, 2022 |
|
Dec. 31, 2022 |
|
Mar. 31, 2023 |
|
Jun. 30, 2023 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net loss including redeemable non-controlling interests |
|
$ |
(263 |
) |
|
$ |
(296 |
) |
|
$ |
(642 |
) |
|
$ |
(162 |
) |
|
$ |
(172 |
) |
Certain legal, tax, and regulatory settlements, reserves, and expenses(1) |
|
|
15 |
|
|
|
14 |
|
|
|
19 |
|
|
|
19 |
|
|
|
49 |
|
Transaction-related costs(2) |
|
|
44 |
|
|
|
7 |
|
|
|
3 |
|
|
|
1 |
|
|
|
1 |
|
Restructuring charges |
|
|
3 |
|
|
|
5 |
|
|
|
84 |
|
|
|
2 |
|
|
|
— |
|
Inventory write-off related to restructuring |
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Impairment expenses(3) |
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
Provision for (benefit from) income taxes |
|
|
(9 |
) |
|
|
(5 |
) |
|
|
(17 |
) |
|
|
17 |
|
|
|
(9 |
) |
Interest income, net |
|
|
(4 |
) |
|
|
(9 |
) |
|
|
(16 |
) |
|
|
(27 |
) |
|
|
(34 |
) |
Other expense, net(4) |
|
|
3 |
|
|
|
2 |
|
|
|
305 |
|
|
|
1 |
|
|
|
4 |
|
Stock-based compensation expense and certain payroll tax expense(5) |
|
|
231 |
|
|
|
251 |
|
|
|
268 |
|
|
|
230 |
|
|
|
312 |
|
Depreciation and amortization expense |
|
|
81 |
|
|
|
118 |
|
|
|
111 |
|
|
|
123 |
|
|
|
128 |
|
Adjusted EBITDA |
|
$ |
103 |
|
|
$ |
87 |
|
|
$ |
117 |
|
|
$ |
204 |
|
|
$ |
279 |
|
(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, (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 and price controls, and (iv) donations as part of our relief efforts in connection with the COVID-19 pandemic and |
||
(2) |
Consists of acquisition, integration, and investment related costs, primarily related to Wolt acquisition. |
||
(3) |
Consists of impairment expense related to an operating lease right-of-use asset associated with our former headquarters. |
||
(4) |
Consists primarily of adjustments to non-marketable equity securities, including impairment, for the three months ended December 31, 2022. |
||
(5) |
Excludes stock-based compensation related to restructuring, which is included in restructuring charges in the table above. |
Estimate of Certain Components of Stock Based Compensation Expense
(in millions) |
|
2022 |
|
2023 |
|
2024 |
|
2025 |
|
2026 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
2020 CEO performance award(1) |
|
$ |
112 |
|
$ |
104 |
|
$ |
67 |
|
$ |
7 |
|
$ |
— |
Wolt retention and revesting |
|
|
93 |
|
|
150 |
|
|
146 |
|
|
141 |
|
54 |
|
Pre-IPO RSUs: amortization of stepped-up value(2) |
|
|
88 |
|
|
69 |
|
|
57 |
|
|
3 |
|
— |
|
New hire, continuing employee, and other grants |
|
|
596 |
|
|
818 - 838 |
|
NA |
|
NA |
|
NA |
|||
Total stock based compensation |
|
$ |
889 |
|
$ |
1,141 - 1,161 |
|
NA |
|
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 the 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) |
|
Jun. 30, 2022 |
|
Sept. 30, 2022 |
|
Dec. 31, 2022 |
|
Mar. 31, 2023 |
|
Jun. 30, 2023 |
||||||||||
Net cash provided by operating activities |
|
$ |
419 |
|
|
$ |
511 |
|
|
$ |
367 |
|
|
$ |
784 |
|
|
$ |
1,012 |
|
Purchases of property and equipment |
|
|
(143 |
) |
|
|
(166 |
) |
|
|
(176 |
) |
|
|
(183 |
) |
|
|
(165 |
) |
Capitalized software and website development costs |
|
|
(136 |
) |
|
|
(154 |
) |
|
|
(170 |
) |
|
|
(173 |
) |
|
|
(194 |
) |
Free Cash Flow |
|
$ |
140 |
|
|
$ |
191 |
|
|
$ |
21 |
|
|
$ |
428 |
|
|
$ |
653 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230802570320/en/
IR Contact:
ir@doordash.com
PR Contact:
press@doordash.com
Source: DoorDash
FAQ
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