Core Business Performance - DoorDash's core business continues to show strong growth momentum, with adjusted EBITDA exceeding expectations by 4% in Q1 2025 and guidance for Q2 being 5% above market expectations [2] - Morgan Stanley noted no signs of macroeconomic weakness in DoorDash's financial report, indicating a healthy user base and improving profitability as scale increases [2] - The firm projects that DoorDash's total order value (GOV) and adjusted EBITDA will grow by 1% and 2%, respectively, by 2026 [2] Acquisition Strategy - DoorDash plans to acquire the smaller, slower-growing UK delivery platform Deliveroo for $3.9 billion, which has sparked market discussions [3] - Deliveroo is performing well in the UK market, particularly in London, with an expected adjusted EBITDA of $540 million by 2025, representing a significant portion of its global adjusted EBITDA [3] - The integration and growth strategy post-acquisition, including leveraging UK profits for global expansion and improving profitability outside London, are key areas of focus [3] - Additionally, DoorDash announced a $1.2 billion acquisition of restaurant CRM platform SevenRooms to enhance merchant services and expand restaurant sales [3] Competitive Landscape and Industry Impact - Uber Eats is the main competitor to Deliveroo in the UK and France, growing at approximately twice the rate of Deliveroo [4] - Morgan Stanley emphasizes the importance of how DoorDash will optimize investments and strategic focus post-acquisition to enhance competitiveness and sustain cash flow growth [4] - Both DoorDash and Uber have made significant acquisitions recently, reducing the likelihood of further consolidation in the US online grocery sector [4]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________ FORM 10-Q _____________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39759 ___________________________ ...

DoorDash (DASH) reported first-quarter 2025 earnings of 44 cents per share against the year-ago quarter’s loss of 6 cents per share. The figure beat the Zacks Consensus Estimate by 10%.Revenues increased 20.7% year over year to $3.03 billion but lagged the consensus mark by 1.96%. The net revenue margin was 13.1% flat year over year, but down 10 basis points (bps) sequentially.DASH’s Q1 DetailsIn the first quarter of 2025, total orders increased 18% year over year to 732 million. The figure beat the Zacks C ...

Core Insights - DoorDash Inc. reported Q1 earnings of $0.44 per share, exceeding the Zacks Consensus Estimate of $0.40 per share, compared to a loss of $0.06 per share a year ago [1] - The company generated revenues of $3.03 billion in Q1, missing the Zacks Consensus Estimate by 1.96%, but showing a 20% year-over-year increase [2] - The total value of orders on DoorDash's marketplace grew 20% year-over-year to $23.1 billion, surpassing estimates of $22.9 billion [2] - DoorDash's guidance for adjusted EBITDA was projected at $625 million, below previous forecasts of $639 million, leading to a decline in stock price by approximately 7.4% on May 6 [3][4] Acquisitions and Market Expansion - DoorDash is acquiring SevenRooms for $1.2 billion, aiming to integrate its CRM and guest experience tools into DoorDash's "Commerce Platform" [5] - The company has also agreed to a takeover of Deliveroo, valued at £2.9 billion ($3.9 billion), which will expand its operations to over 40 countries [5][6] - Analysts view the Deliveroo acquisition positively due to limited market overlap, which may alleviate regulatory concerns and enhance growth opportunities [6] Valuation and Investment Considerations - The average valuation of companies in the S&P 500 is 20 times annual earnings, while FTSE 100 companies are valued at just 12 times earnings, indicating a favorable valuation for the Deliveroo deal [7] - DoorDash shares are considered overvalued, trading at a trailing P/E ratio of 44, significantly higher than the Internet – Services industry average [12] - Investors may consider exchange-traded funds (ETFs) to mitigate company-specific risks, with DoorDash having exposure to ETFs like PEJ, FPX, and PBJ [13][14]

Mergers and Acquisitions - OpenAI plans to acquire Windsurf for approximately $3 billion, marking its largest acquisition to date aimed at enhancing its technological capabilities in the AI sector [2] - Intel is selling 51% of its stake in Altera to Silver Lake for an estimated valuation of $8.75 billion, as part of its strategy to improve its balance sheet [3] - Harman International is acquiring Masimo's audio business for $350 million, with the deal expected to close by the end of the year [4] - Infosys has reached a final agreement to acquire The Missing Link, an Australian cybersecurity firm, to strengthen its cybersecurity capabilities [5] - DoorDash is set to acquire UK-based food delivery company Deliveroo for approximately $3.9 billion, expanding its international footprint [6] - Uber plans to acquire 85% of Turkish food delivery platform Trendyol GO for about $700 million, pending regulatory approval [7] - Lyft is acquiring European ride-hailing app FreeNow for approximately €175 million ($197 million), with the deal expected to close in the second half of 2025 [8] - Hugging Face is entering the robotics field by acquiring Pollen Robotics, although the financial terms of the deal were not disclosed [9] - WPP is acquiring data collaboration platform InfoSum to enhance its AI-driven data services [10] - CleverTap is acquiring rehool.ai to strengthen its customer retention services [11] - Focus Media plans to acquire New潮传媒 for an estimated valuation of 8.3 billion yuan [13] - China Mobile intends to acquire approximately 15.46% of Hong Kong Broadband for about HKD 1.2 billion [14] - IBM has completed the acquisition of Hakkoda to expand its data transformation services [15] - FuboTV is under investigation by the U.S. Department of Justice regarding its acquisition by Disney, focusing on potential market concentration issues [19] - Universal Music's acquisition of Downtown Music is facing an EU investigation due to potential competitive impacts [20] - Onsemi has withdrawn its acquisition offer for Allegro Microsystems, citing reluctance from Allegro's board [21]

Summary of DoorDash Q1 2025 Earnings Call Company Overview - **Company**: DoorDash - **Quarter**: Q1 2025 Key Points Industry and Market Performance - **Order Volume**: The company achieved 732 million orders in Q1 2025, representing a year-over-year increase of 18.1% driven by growth in total users, increased purchase frequency among core users, and contributions from new verticals [1] - **Gross Order Value (GOV)**: GOV reached $23.08 billion, up 19.9% year-over-year, with an Average Order Value (AOV) of $31.5, reflecting a 1.6% increase year-over-year [1][2] Revenue and Monetization - **Revenue**: The company reported revenue of $3.03 billion for Q1 2025, a year-over-year increase of 20.7% [2] - **Take Rate**: The GOV take rate was calculated at 13.1%, which is an increase of 8 basis points year-over-year, although it decreased by 36 basis points compared to Q4 2024 [2] Cost and Profitability - **Gross Profit**: Adjusted gross profit was $1.46 billion, with a gross margin of 6.3%, down 38 basis points year-over-year [2] - **Operating Expenses**: - Sales expense ratio: 2.4%, down 6 basis points year-over-year - R&D expense ratio: 1.3%, down 12 basis points year-over-year - Management expense ratio: 1.4%, down 22 basis points year-over-year - Depreciation and amortization expense ratio: 0.7%, down 64 basis points year-over-year - **Net Profit**: GAAP net profit was $193 million, corresponding to a net margin of 0.8%, an increase of 96 basis points year-over-year [2] Adjusted Financial Metrics - **Non-GAAP Net Profit**: The adjusted net profit for Q1 2025 was $475 million, with a net margin of 2.1%, an increase of 68 basis points year-over-year [3] Strategic Acquisitions - **Acquisition of Deliveroo**: The acquisition price was set at 180 pence per share, a premium of approximately 4.6% over Deliveroo's previous closing price of 172 pence. This acquisition will enable DoorDash to enter the delivery markets in the UK, Europe, and the Middle East, expanding its operations to over 40 countries [3] - **Acquisition of SevenRooms**: SevenRooms is a marketing platform for hospitality clients, covering over 13,000 restaurants, hotels, and nightlife brands, including high-end clients like Marriott and MGM. This acquisition signifies a strategic shift for DoorDash from "delivery to home" to "dine-in" services [3] - **Market Potential**: The U.S. dine-in restaurant market is estimated to exceed $300 billion. If the online penetration rate reaches 5%, DoorDash could capture a market share of 70%, potentially contributing over $10 billion in Gross Transaction Value (GTV) [3]

Group 1 - The Asian Development Bank (ADB) will hold its 58th annual meeting in Milan, Italy, from May 4 to 7, 2025, focusing on digital transformation and regional integration in the Asia-Pacific region [2] - Chinese Finance Minister Liu Kun emphasized the need for multilateral cooperation to address global economic risks exacerbated by unilateralism and protectionism [2][3] - China aims to contribute approximately 30% to global economic growth, with a GDP growth target of around 5% for 2025 [3] Group 2 - CATL has received approval from the Hong Kong Stock Exchange to list in Hong Kong, with plans to raise approximately $5 billion [5] - In its 2024 annual report, CATL projected revenues of 362.01 billion yuan, a year-on-year decrease of 9.7%, while net profit is expected to rise by 15.01% to 50.75 billion yuan [5] - Seres reported April sales of 31,488 new energy vehicles, a year-on-year increase of 12.99%, but cumulative sales for the year are down by 29.87% [6] Group 3 - Pony.ai announced a global strategic partnership with Uber to integrate its Robotaxi fleet into the Uber platform, starting in the Middle East [7] - OpenAI has abandoned its plan to transition to a for-profit model, which may affect SoftBank's investment, potentially reducing it from $40 billion to $20 billion [10] - Skechers has agreed to be acquired by 3G Capital at a cash price of $63 per share, representing a 30% premium over its recent trading price [11]

Economic Overview - The U.S. trade deficit reached a record low of -$140.5 billion in March, surpassing the previous estimate of -$137.6 billion and the revised prior record of -$123.2 billion [2] - The trade deficit metric has been consistently reported since 1992, indicating ongoing trade challenges [3] Company Earnings Reports - DoorDash (DASH) reported Q1 earnings of 44 cents per share, beating estimates by 10%, but revenues of $3.03 billion fell short by nearly 2%. The company announced acquisitions of Deliveroo for $3.9 billion and SevenRooms for $1.2 billion [3] - Archer-Daniels-Midland (ADM) reported earnings of 70 cents per share, slightly beating estimates but significantly lower than the $1.46 per share from the previous year. Revenues of $20.18 billion missed expectations by 2.5% [4] - Marriott International (MAR) reported Q1 earnings of $2.32 per share, exceeding estimates by 5 cents, with revenues of $6.26 billion, which was slightly below expectations but an increase from $5.98 billion a year ago [5] Market Expectations - The Federal Open Market Committee (FOMC) meeting is underway, with no expected changes to the Fed funds rate, which has been stable in the 4.25-4.50% range since December [6][7] - The U.S. dollar has shown some instability due to new global trade realities, but bond yields remain stable, indicating no immediate pressure for rate changes [8] Upcoming Earnings Reports - Upcoming earnings reports include Advanced Micro Devices (AMD), Electronic Arts (EA), and Wynn Resorts (WYNN), with The Walt Disney Company (DIS) reporting the following day [9]

Core Insights - DoorDash is set to acquire SevenRooms, a hospitality tech company based in New York City, which is seen as a significant expansion of DoorDash's Commerce Platform capabilities [1][7] - The acquisition aims to enhance the DoorDash Commerce Platform, allowing merchants to better serve customers across various channels and improve profitability through smarter marketing [2][5] Group 1: Acquisition Details - The deal is expected to close in the second half of the year, pending regulatory approvals and closing conditions [7] - This announcement coincides with DoorDash's agreement to acquire the U.K.-based food delivery platform Deliveroo for $3.9 billion [7] Group 2: Commerce Platform Enhancement - DoorDash's Commerce Platform, introduced in September, provides tools for merchants to create direct channels for customer engagement, whether online, via phone, or in-store [2][3] - The platform includes features for delivery through merchants' own apps or websites, online ordering, and AI-powered phone ordering systems [3] Group 3: SevenRooms Overview - SevenRooms, launched in 2011, offers integrated tools for marketing, operations, and guest experience, aimed at helping hospitality businesses strengthen guest relationships and drive revenue growth [4] - The combination of DoorDash's scale and digital innovation with SevenRooms's in-store capabilities is expected to enhance merchants' growth across both first-party and third-party channels [5] Group 4: Market Context - The acquisition comes at a time when U.S. consumers are dining out less frequently due to financial pressures, as noted by Wendy's CEO and a report from Fiserv [6]

Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company has a team of experienced news journalists who produce independent content across various financial markets [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The content includes insights into sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is committed to adopting technology to enhance its content creation and workflow processes [4] - The company utilizes automation and software tools, including generative AI, while ensuring that all published content is edited and authored by humans [5]