Financial Data and Key Metrics - The company reported strong demand on the consumer side, with no significant challenges observed despite industry-wide concerns about softening restaurant demand [6] - DashPass achieved an all-time high in subscriber base, indicating strong consumer engagement and retention [8][11] - The company continues to see robust growth in digital channels, with many multiples of overall growth in restaurant and retail sectors [6][7] - The company's order frequency and retention rates are as good or better than pandemic cohorts, reflecting strong product improvements [7][11] Business Line Data and Key Metrics - The restaurant business showed consistent growth in GOV (Gross Order Value) year-over-year, with faster growth in June compared to April [11] - The company is expanding its use cases beyond restaurants, with significant growth in non-restaurant categories such as grocery, convenience, and health and beauty [8][29] - The ad business and platform business are growing rapidly, contributing to improved revenue growth and take rates [14] Market Data and Key Metrics - The company is seeing strong retention and frequency in international markets, particularly in markets where Wolt operates, with better performance than in the U.S. [15][16] - The company is underpenetrated in many international markets, with significant room for growth in restaurant and retail categories [37] - The company is expanding its presence in grocery and convenience, with partnerships like the one with Chase enhancing its market position [28] Company Strategy and Industry Competition - The company is focused on improving product quality, affordability, and selection to maintain its leadership in the local commerce space [7][8] - The company is leveraging its logistics network to improve delivery accuracy and speed, which is critical for both restaurant and retail sectors [8] - The company is investing in new verticals and international markets, with a focus on scaling and improving efficiency [24][37] - The company is not seeing significant changes in competitive dynamics, with strong customer preference for its platform despite industry noise [63][64] Management Commentary on Operating Environment and Future Outlook - Management highlighted the early stages of digital transformation in the restaurant and retail industries, with significant growth potential in digital channels [6] - The company is focused on driving improvements in efficiency and reinvesting in growth opportunities, particularly in new verticals and international markets [14][24] - Management expressed confidence in the company's ability to maintain strong retention and frequency metrics, which are key indicators of long-term growth [7][11] Other Important Information - The company is working on affordability programs, such as DashPass, to attract and retain customers [8] - The company is expanding its selection in both restaurant and non-restaurant categories, with a focus on driving incremental GOV and improving conversion rates [31] - The company is seeing improvements in unit economics and gross profit across major lines of business, contributing to better EBITDA performance [33][34] Q&A Session Summary Question: Demand and New Customer Acquisition [5] - The company is seeing strong demand, with no significant softening in consumer behavior. New customer acquisition remains robust, with the company capturing more than half of new customers in the restaurant industry and about half in non-restaurant categories [9][10] Question: Take Rate and International Retention [13] - The take rate improvement is driven by growth in the ad and platform businesses, as well as efficiency improvements in Dasher costs. International markets show better retention due to strong fundamentals and lessons learned from Wolt [14][15][16] Question: International Market Performance and CPG Advertising [18] - The company is focused on creating the best service for customers, couriers, and merchants in international markets. CPG advertising is growing rapidly, with a focus on balancing consumer experience and advertiser returns [19][20][23] Question: Order Frequency and Merchant Investment [27] - Order frequency is increasing across both restaurant and new verticals, driven by better product offerings and delivery times. The company is investing in expanding merchant selection to drive incremental GOV [28][30][31] Question: EBITDA Flow-Through and Gross Margin [32] - EBITDA improvements are driven by higher GOV growth and better unit economics. The company expects continued margin improvements in restaurant, new verticals, and international businesses [33][34] Question: International Ambitions and Asset Mix [36] - The company sees significant growth potential in international markets, with a focus on expanding restaurant and retail selection. The company is well-positioned to achieve its ambitions with its current asset mix [37][38] Question: Restaurant Menu Inflation and Regulatory Impact [42] - Inflation has not significantly impacted the company's business, with AOV (Average Order Value) remaining flat year-over-year. Regulatory costs, particularly in New York and Seattle, are expected to decrease as the company improves efficiency [43][44][46] Question: Fee Reduction and Efficiency Improvements [48] - The company is focused on lowering fees and passing savings on to consumers, while improving logistics and selection to drive growth [49][50][51] Question: Fixed OpEx and CPG Ad Growth [54] - Fixed OpEx as a percentage of GOV is expected to remain stable for the rest of the year. The company is pacing CPG ad growth to ensure a healthy marketplace before monetizing it [55][57] Question: Ad Tech Stack and Competitive Dynamics [61] - The ad tech stack is evolving to support multiple categories and geographies. The company has not seen significant changes in competitive dynamics, with strong customer preference for its platform [62][63][64] Question: Merchant Expansion and Regulatory Impact [66] - The company is adding tens of thousands of new merchants across restaurant and non-restaurant categories. Regulatory impacts in New York and Seattle are expected to decrease as the company improves efficiency [67][69][70] Question: Price Parity and Ad Load Impact [73] - The company is working on price parity initiatives to improve affordability. Ad load has not significantly degraded app engagement or order frequency, as the company prioritizes consumer experience [74][75][76]

Company Performance - DoorDash, Inc. reported a quarterly loss of $0.38 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.10, representing an earnings surprise of -280% [1] - The company posted revenues of $2.63 billion for the quarter ended June 2024, exceeding the Zacks Consensus Estimate by 3.70%, and showing an increase from $2.13 billion in the same quarter last year [2] - Over the last four quarters, DoorDash has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Outlook - DoorDash shares have increased by approximately 12% since the beginning of the year, while the S&P 500 has gained 15.8% [3] - The company's earnings outlook will be crucial for determining the sustainability of its stock price movement, particularly following management's commentary on the earnings call [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.07 on revenues of $2.58 billion, and for the current fiscal year, it is also $0.07 on revenues of $10.34 billion [7] Industry Context - The Internet - Services industry, to which DoorDash belongs, is currently ranked in the bottom 31% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact DoorDash's stock performance [5][6]

A DoorDash driver on an electric bicycle wearing a cooler backpack with the skyline of San Francisco in the background. Shares of DoorDash popped 13% in extended trading on Thursday after the company reported second-quarter results that beat analysts' expectations for revenue. Here's how the company did, according to LSEG analyst expectations: Loss per share: 38 cents, which may not compare with the expected loss of 9 cents Revenue: $2.63 billion vs. $2.54 billion expected DoorDash's revenue increased 23% f ...

Financial Performance - Total Orders increased to 635 million in Q2 2024, representing a 19% growth year-over-year compared to 532 million in Q2 2023[89]. - Marketplace Gross Order Value (GOV) reached $19.7 billion in Q2 2024, a 20% increase from $16.5 billion in Q2 2023[90]. - Revenue for Q2 2024 was $2.63 billion, up 23% from $2.13 billion in Q2 2023[94]. - Contribution Profit rose to $825 million in Q2 2024, compared to $620 million in Q2 2023, driven by revenue growth[92]. - Adjusted EBITDA increased to $430 million in Q2 2024, up from $279 million in Q2 2023, reflecting improved operating performance[93]. - Free Cash Flow for Q2 2024 was $451 million, an increase from $311 million in Q2 2023, primarily due to higher net cash from operating activities[93]. - Net Revenue Margin improved to 13.3% in Q2 2024, up from 13.0% in Q2 2023, attributed to increased advertising revenue[90]. - GAAP net loss narrowed to $158 million in Q2 2024, compared to a net loss of $172 million in Q2 2023[94]. - Revenue for Q2 2024 increased by $497 million, or 23%, to $2,630 million, driven by a 20% increase in Marketplace GOV[100]. - Revenue for the first six months of 2024 increased by $975 million, or 23%, to $5,143 million, also primarily driven by a 20% increase in Marketplace GOV[101]. Cost and Expenses - Total costs and expenses for Q2 2024 were $2.83 billion, up from $2.34 billion in Q2 2023, reflecting increased operational costs[94]. - Cost of revenue for Q2 2024 increased by $250 million, or 22%, to $1,385 million, mainly due to a $215 million increase in order management costs[103]. - Cost of revenue for the first six months of 2024 increased by $511 million, or 23%, to $2,715 million, primarily driven by a $452 million increase in order management costs[104]. - Sales and marketing expenses for Q2 2024 increased by $38 million, or 8%, to $509 million, driven by a $17 million increase in advertising expenses[105]. - Research and development expenses for Q2 2024 increased by $34 million, or 13%, to $303 million, primarily due to a $30 million increase in personnel-related compensation expenses[110]. - General and administrative expenses for Q2 2024 increased by $153 million, or 45%, to $494 million, driven by an $83 million increase in office lease impairment expenses[112]. - General and administrative expenses for the first six months of 2024 increased by $187 million, or 30%, to $813 million, primarily due to an increase in legal, tax, and regulatory expenses[113]. Profitability Metrics - Adjusted cost of revenue for Q2 2024 was $1,335 million, up from $1,084 million in Q2 2023, representing a 23.1% increase[134]. - Adjusted sales and marketing expense for Q2 2024 was $470 million, compared to $429 million in Q2 2023, reflecting a 9.6% increase[135]. - Adjusted research and development expense for Q2 2024 was $156 million, up from $130 million in Q2 2023, indicating a 20% increase[136]. - Adjusted general and administrative expense for Q2 2024 was $239 million, compared to $211 million in Q2 2023, marking a 13.3% increase[137]. - Contribution Profit for Q2 2024 was $825 million, up from $620 million in Q2 2023, representing a 33.1% increase[142]. - Gross profit for Q2 2024 was $1,195 million, compared to $951 million in Q2 2023, reflecting a 25.7% increase[142]. - Gross Margin for Q2 2024 was 45.4%, compared to 44.6% in Q2 2023, showing an improvement of 0.8 percentage points[142]. - Contribution Margin for Q2 2024 was 31.4%, up from 29.1% in Q2 2023, indicating a 2.3 percentage point increase[142]. - Adjusted Gross Profit for Q2 2024 was $1,295 million, up from $1,049 million in Q2 2023, reflecting a growth of 23.4%[143]. - Adjusted Gross Margin remained stable at 49.2% for both Q2 2023 and Q2 2024[143]. - Adjusted EBITDA for the first six months of 2024 was $801 million, compared to $483 million for the same period in 2023, representing a 65.7% increase[145]. - Free Cash Flow for the first six months of 2024 was $938 million, an increase from $627 million in the same period of 2023, marking a growth of 49.7%[146]. Cash and Investments - As of June 30, 2024, the company had cash, cash equivalents, and marketable securities totaling $5.5 billion, including $3.4 billion in cash and cash equivalents[148]. - The company reported an accumulated deficit of $5.3 billion as of June 30, 2024, indicating significant historical operating losses[149]. - A share repurchase program was authorized in February 2024 for up to $1.1 billion in Class A common stock[150]. - Cash provided by operating activities for the first six months of 2024 was $1,083 million, compared to $790 million in the same period of 2023[152]. - Cash used in investing activities for the first six months of 2024 was $219 million, primarily for marketable securities purchases of $969 million[155]. - The company entered into an $800 million unsecured revolving credit facility, maturing on April 26, 2029, with no outstanding loans as of June 30, 2024[147]. - As of June 30, 2024, the aggregate carrying value of non-marketable equity investments was $42 million[161]. Risk and Currency Exposure - A hypothetical 100 basis point increase in interest rates would not have materially affected the condensed consolidated financial statements[160]. - Foreign currency gains and losses were immaterial for the three and six months ended June 30, 2024[163]. - A 10% change in exchange rates against the U.S. dollar would not have resulted in a material gain or loss based on foreign currency exposures as of June 30, 2024[163]. - The company does not hedge interest rate exposures and focuses on capital preservation and liquidity requirements[160]. - Changes in foreign currency exchange rates could reduce reported revenue and expenses from international businesses[162]. - Translation adjustments from foreign subsidiaries could result in gains or losses recorded in accumulated other comprehensive income (loss)[164]. - The company does not enter into investments for trading or speculative purposes, focusing instead on long-term capital preservation[160]. - The markets for technologies or products developed by non-marketable equity investments are typically in early stages and may not materialize[161]. - The company has experienced fluctuations in net income or loss due to transaction gains or losses related to foreign currency revaluations[163].

Financial Performance - Total Orders increased 19% year-over-year (Y/Y) to 635 million, and Marketplace Gross Order Value (GOV) increased 20% Y/Y to $19.7 billion[3]. - Revenue rose 23% Y/Y to $2.6 billion, with a Net Revenue Margin of 13.3%, up from 13.0% in Q2 2023[3][8]. - GAAP net loss was $158 million in Q2 2024, an improvement from a loss of $172 million in Q2 2023[11]. - Adjusted EBITDA reached an all-time high of $430 million, compared to $279 million in Q2 2023[11]. - Revenue for Q2 2024 was $2,630 million, up from $2,133 million in Q2 2023, representing a 23.3% increase[32]. - Net loss attributable to DoorDash, Inc. common stockholders for Q2 2024 was $157 million, compared to a net loss of $170 million in Q2 2023, showing an improvement of 7.6%[32]. - Free cash flow for Q2 2023 was $653 million, projected to increase to $1,660 million by Q2 2024[41]. Cash Flow and Investments - The company generated net cash provided by operating activities of $530 million and Free Cash Flow of $451 million, both up from the previous year[11]. - Net cash provided by operating activities for the six months ended June 30, 2023, was $790 million, compared to $1,083 million for the same period in 2024, indicating a decrease of approximately 27%[33]. - Net cash used in investing activities for the six months ended June 30, 2023, was $(145) million, compared to $(219) million for the same period in 2024, showing an improvement[33]. - The board authorized a stock repurchase of up to $1.1 billion, with $219 million spent on repurchasing 2.1 million shares year-to-date[12]. Expenses - GAAP research and development expense was $303 million, up 13% Y/Y, driven by increased personnel-related expenses[10]. - GAAP general and administrative expense was $494 million, a 45% increase Y/Y, primarily due to office lease impairment and legal expenses[10]. - Total costs and expenses for Q2 2024 were $2,831 million, compared to $2,344 million in Q2 2023, an increase of 20.8%[32]. - Legal, tax, and regulatory settlements accounted for $49 million in Q2 2023, with expectations of $102 million by Q2 2024[37]. - The company is actively managing its office lease impairments, with expenses projected at $83 million in Q2 2024[37]. Future Outlook - For Q3 2024, the company expects Marketplace GOV between $19.4 billion and $19.8 billion, and Adjusted EBITDA between $470 million and $540 million[13]. - The company plans to invest significantly in new categories and international markets, while cautioning about potential risks from consumer spending and foreign market operations[14]. - The company expects to continue investing in new geographies and products to drive future growth[20]. - The company plans to continue its market expansion and product development strategies, focusing on new technologies and services[38]. Assets and Equity - Total assets increased from $10,839 million as of December 31, 2023, to $11,837 million as of June 30, 2024[29]. - Cash and cash equivalents rose from $2,656 million to $3,430 million during the same period[29]. - DoorDash's stockholders' equity increased from $6,806 million to $7,162 million from December 31, 2023, to June 30, 2024[31]. - The company reported a weighted-average number of shares outstanding of 410,482 thousand for Q2 2024, up from 388,737 thousand in Q2 2023[32]. Profitability Metrics - Gross profit margin for the quarter ended June 30, 2023, was 44.6%, with an expected increase to 45.4% by June 30, 2024[35]. - Adjusted gross margin is expected to stabilize around 48.7% for the upcoming quarters, with a slight increase to 49.2% by Q2 2024[36]. - Contribution profit for the quarter ended June 30, 2023, was $620 million, with an anticipated rise to $825 million by June 30, 2024, indicating a growth of about 33%[35]. - Stock-based compensation expense for the quarter ended June 30, 2023, was $43 million, with projections of $41 million by June 30, 2024[34].

Core Idea - Red Bull Basement 2024 aims to empower a new generation of innovators by providing resources such as networking, collaboration, and AI technology to help them develop and launch their ideas [2][12]. Event Overview - The application window for Red Bull Basement 2024 is open from August 1 to October 27, 2024, allowing U.S. teams to submit their business plans [6][11]. - The event will culminate in a Global Final in Tokyo, Japan, where national winners will compete for the title and a unique MBA experience in Silicon Valley [8][12]. Phases of the Event - **Phase 1 – Application**: Teams can create and submit a one-page business plan using an AI tool, with selected teams advancing to the National Final at MIT Media Labs from November 15-17, 2024 [6]. - **Phase 2 – Development**: National winners will receive resources and mentorship from November 18 to December 1, 2024, to refine their business plans [7]. - **Phase 3 – Global Final**: The Global Final will take place from December 2 to 5, 2024, featuring workshops and networking opportunities with international entrepreneurs [8]. Partnerships and Technology - Red Bull Basement 2024 is in partnership with AMD and Microsoft, utilizing AI technology to enhance the innovation process [10][12]. - Participants will receive AI-enabled laptops with AMD's new Ryzen AI processor to leverage AI tools throughout the project [10]. Participant Experience - Past participants have reported significant personal and professional growth through networking and collaboration opportunities provided by Red Bull Basement [4][12]. - The event is designed to support innovators in disrupting the status quo and making a meaningful impact [3][12].

The two organizations team up to provide local Meals on Wheels programs with a cost-effective, convenient delivery alternative to ensure homebound older adults always receive the nutritious meals they need Through Project DASH, DoorDash powers deliveries on behalf of non-profits at a discounted rate, enabling the Meals on Wheels network to address gaps in volunteer coverage. Together, DoorDash and Meals on Wheels America have already powered free Project DASH pilots for more than 30 local programs to make 2 ...

The report noted that DoorDash is also exploring software that would let merchants to build online storefronts and accept online payments, and accept eCommerce returns directly from consumers and delivering to UPS, FedEx, or the U.S. Postal Service. "With its growing number of partners, DoorDash now provides access to groceries, retail, flowers, food and other products from more than 500,000 local merchants," PYMNTS noted in reporting on the new partnerships last week. There's a wealth of opportunity here, ...

Core Insights - The food delivery industry is facing challenges as rising costs and service fees lead to consumer frustrations, impacting order volumes and profitability for companies [2][3][5] Group 1: Industry Trends - Third-party food delivery services like Grubhub, DoorDash, and Uber Eats are becoming increasingly common among American consumers, with a rise in the share of consumers using these services from 15% in 2020 to 21% in 2024 [17] - Consumers reported higher yearly increases in total checks on third-party apps compared to direct restaurant orders between 2022 and 2024, indicating a trend of rising costs associated with these services [16] - The premium charged by restaurants for third-party delivery menus has nearly doubled since 2020, contributing to consumer dissatisfaction [18] Group 2: Company Performance - Grubhub, owned by Just Eat Takeaway, has not posted an annual profit since going public in 2020, with only one quarter of profit reported during the early COVID-19 lockdowns [7][8] - Uber's delivery segment, which includes Uber Eats, reported adjusted EBITDA of $1.51 billion for 2023, an increase of over $955 million from 2022, highlighting strong performance in the delivery business [37] - DoorDash has seen an all-time high of active users and increased order frequency while claiming to have lowered fees for consumers over the last two years [20] Group 3: Consumer Behavior - A significant portion of consumers (41%) reported ordering less delivery due to high delivery fees, while 48% cited inflated menu prices as a reason for reduced orders [18] - Consumers often experience surprise at checkout due to additional fees, which can lead to frustration and impact their willingness to order [13][24] - Tipping practices are influenced by the perception that service fees do not adequately compensate delivery drivers, leading consumers to feel obligated to tip despite high overall costs [36][52] Group 4: Restaurant Dynamics - Restaurants face a difficult balance in using third-party delivery services, as the associated costs can force them to raise menu prices [28] - The commission structure for restaurants varies, with Uber Eats and DoorDash charging between 15% to 30% of the order total, while Grubhub charges a marketing commission of 5% to 10% [26] - Some restaurant owners resist using third-party delivery services due to concerns over high fees and the impact on their bottom line [30][47] Group 5: Subscription Models - All three major delivery services offer premium memberships that eliminate delivery charges, but service fees still apply, which can vary by location [48][51] - Partnerships with companies like Amazon for membership offerings aim to attract more customers and reduce overall costs for frequent users [33] - Subscription models are seen as a way to retain loyal customers while providing them with tailored discounts and benefits [34]

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. Revenues are expected to be $2.54 billion, up 18.9% from the year-ago quarter. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Thus, a positive or neg ...