Here's our initial take on DoorDash's (DASH -7.50%) financial report.Key MetricsMetricQ1 2024Q1 2025Changevs. ExpectationsRevenue$2.51 billion$3.03 billion21%MissedEarnings per share($0.06)$0.44n/aBeatTotal orders620 million732 million18%n/aGross order value$19.2 billion$23.1 billion20%n/aDoorDash Posts Steady Growth, Plots Further ExpansionThe story for DoorDash in recent quarters has been the company's success in translating the benefits of scale into profits. The tech platform is an undisputed leader in ...

Core Insights - DoorDash reported strong order growth and confirmed two major acquisitions, but quarterly revenue missed analyst expectations [1][5] - The company achieved quarterly GAAP earnings of 44 cents per share, surpassing the analyst consensus estimate of 39 cents [1] - Quarterly revenue reached $3.03 billion, falling short of the $3.09 billion analyst consensus estimate, but grew by 21% year-over-year [1] Order and User Growth - Total Orders increased by 18% year-over-year to 732 million, while Marketplace Gross Order Value (GOV) rose by 20% year-over-year to $23.1 billion [2] - Monthly Active Users (MAUs) in the U.S. Marketplace contributed to consistent year-over-year growth in December 2024 [2] - International MAUs continued to grow at a double-digit pace, with Wolt-branded countries seeing more than double the Wolt+ members compared to the end of Q1 2024 [3] Financial Outlook - DoorDash expects adjusted EBITDA as a percentage of Marketplace GOV to increase from the second quarter to the third quarter [4] Acquisitions - DoorDash is preparing to acquire Deliveroo, a U.K.-based food delivery firm, in a $3.9 billion deal [5] - The company also agreed to acquire SevenRooms, a New York City-based software company, for $1.2 billion [5] - The acquisitions are expected to close in the second half of 2025, pending customary closing conditions and regulatory approvals [5] - As of March 31, 2025, DoorDash held $4.71 billion in cash and equivalents [5] Stock Performance - DoorDash stock experienced a decline of 5.19%, trading at $194.75 in premarket [6]

DoorDash, Inc. (DASH) came out with quarterly earnings of $0.44 per share, beating the Zacks Consensus Estimate of $0.40 per share. This compares to loss of $0.06 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10%. A quarter ago, it was expected that this company would post earnings of $0.34 per share when it actually produced earnings of $0.33, delivering a surprise of -2.94%.Over the last four quarters, the company has surp ...

Financial Data and Key Metrics Changes - The company reported strong performance in Q1 2025, with significant year-over-year growth in EBITDA profit dollars, indicating a healthy financial position [34][36][40] - The net revenue margin decreased quarter-on-quarter due to increased affordability initiatives and a mix shift in the business, but expectations for Q2 indicate a recovery in margins [39][44][121] Business Line Data and Key Metrics Changes - The new verticals business, including grocery, showed strong growth with an increasing number of monthly active users (MAUs) and improved order frequency [23][24][25] - The grocery segment is becoming a larger component of the overall business, with increasing basket sizes driven by consumer habituation [120] Market Data and Key Metrics Changes - The company is expanding its international presence, particularly in Europe, with the acquisition of Deliveroo expected to enhance its market share and operational scale [11][21][79] - The competitive landscape in Europe remains challenging, but the company believes it can leverage its experience to improve Deliveroo's performance [40][46] Company Strategy and Development Direction - The company is focused on maximizing long-term profit dollars rather than optimizing unit margins, emphasizing the importance of scale and operational efficiency [36][46][78] - The strategy includes investing in affordability initiatives across all categories and geographies to enhance customer value and drive growth [115] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the food delivery market, noting that consumer behavior remains stable despite external economic pressures [12][13] - The company is optimistic about its growth trajectory, particularly in the grocery sector, and expects to be volume share leaders in the coming year [59][121] Other Important Information - The company has a minimum cash requirement of approximately $1 billion for working capital, with excess cash allocated for strategic investments [93] - The acquisition of SevenRooms is seen as a way to enhance the company's marketing capabilities and expand its service offerings beyond restaurants [92][96] Q&A Session Summary Question: Can you discuss the international competitive landscape and the growth of the European market? - Management highlighted the strong track record in international markets and the potential for scale through the acquisition of Deliveroo, which will enhance their presence in Europe [11][12][21] Question: Has the philosophy on M&A changed with recent acquisitions? - Management confirmed that the bar for M&A remains high, focusing on whether acquisitions increase the addressable market or enhance the existing portfolio [20][21] Question: What factors are driving increased spend per customer in grocery? - The company noted that increased selection and improved product quality are key drivers of customer spending, with a significant portion of MAUs now ordering groceries [23][24][25] Question: Can you elaborate on the affordability initiatives and their impact on margins? - Management clarified that the goal is to grow profit dollars rather than optimize margin percentages, with affordability initiatives aimed at driving order volume [39][44][121] Question: What is the vision for DashPass moving forward? - The company views DashPass as a membership program that will evolve to connect local businesses with consumers more effectively, enhancing its utility [71][72] Question: How does the company plan to address competitive intensity in grocery? - Management emphasized a focus on improving product offerings and customer experience, believing that investments in quality and service will drive competitive advantage [60][61]

Group 1 - DoorDash announced two major acquisitions: a $1.2 billion cash purchase of hotel technology company SevenRooms Inc. and a $3.9 billion acquisition of London-based delivery platform Deliveroo Plc, reflecting its ambition for global expansion [1] - The acquisition of SevenRooms is expected to enhance DoorDash's high-end restaurant client base, while the Deliveroo acquisition opens up the UK and European markets [1][2] - DoorDash's Q1 financial results showed total revenue of $3 billion, slightly below analyst expectations, but net profit of $193 million exceeded market consensus, with total order volume reaching 732 million, a year-on-year increase of 18% [2] Group 2 - DoorDash plans to increase investment in sales and product features for SevenRooms to expand its market coverage and enhance its operational and marketing solutions [2] - The company expects total order value for the current quarter to be between $23.3 billion and $23.7 billion, aligning with Wall Street's expectations [3] - Despite strong consumer demand, ongoing investments in new business categories and international markets are putting pressure on DoorDash's profit forecasts, with adjusted EBITDA expected to be between $600 million and $650 million, below average expectations [3]

Market Overview - US stock index futures are all down, with Dow futures down 0.77%, S&P 500 futures down 0.93%, and Nasdaq futures down 1.21% [1] - European indices also show declines, with Germany's DAX down 0.89%, UK's FTSE 100 down 0.22%, France's CAC40 down 0.52%, and the Euro Stoxx 50 down 0.70% [2] - WTI crude oil increased by 2.15% to $58.36 per barrel, while Brent crude rose by 2.06% to $61.47 per barrel [2] Company News - Goldman Sachs indicates that recent earnings reports from major tech companies in the AI sector have boosted investor confidence, suggesting that recent pullbacks present a buying opportunity [3] - DoorDash reported Q1 revenue growth of 20.7% to $3.03 billion, with adjusted EBITDA of $590 million, exceeding market expectations [4] - Philips lowered its annual profit forecast due to the impact of US tariffs, estimating a net effect of €250 million to €300 million (approximately $283 million to $340 million) [5] - Palantir's Q1 revenue surged 39% to $884 million, leading to an upward revision of its 2025 revenue forecast to approximately $3.9 billion, a 36% year-over-year increase [5] - Ford's Q1 revenue fell 5% to $40.7 billion but exceeded analyst expectations, while the company withdrew its full-year profit guidance [6] - Apple is expected to launch AI features in China with support from Alibaba and Baidu, integrating local compliance mechanisms [7] - WeRide expanded its strategic partnership with Uber to deploy autonomous Robotaxi services in 15 cities over the next five years [8] - The US Department of Justice is pushing for the forced divestiture of Google's online advertising business, citing illegal monopoly practices [9]

Financial Data and Key Metrics Changes - The company reported strong performance in Q1 2025, with significant year-over-year growth in EBITDA profit dollars, indicating a healthy financial position [34][36]. - The net revenue margin experienced a quarter-on-quarter decline, attributed to seasonal factors and increased affordability initiatives [40][43]. Business Line Data and Key Metrics Changes - The new verticals business, including grocery, showed strong growth with an increase in monthly active users (MAUs) and order frequency, indicating successful customer engagement [24][25]. - The grocery segment is becoming a larger component of the overall business, with increasing basket sizes driven by consumer habituation [121]. Market Data and Key Metrics Changes - The company is focusing on expanding its market share in Europe, particularly through the acquisition of Deliveroo, which is expected to enhance its competitive positioning in the region [11][12]. - The competitive landscape in Europe remains challenging, but the company believes it can leverage its experience to improve Deliveroo's performance [46][102]. Company Strategy and Development Direction - The company aims to maximize long-term profit dollars rather than focusing solely on unit margins, emphasizing the importance of scale in generating profits [76][102]. - The strategy includes investing in affordability initiatives across all categories and geographies to enhance customer value and drive growth [116]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the food delivery market, noting that consumer behavior remains stable despite external economic pressures [12][13]. - The company is optimistic about its growth trajectory, particularly in the grocery sector, and expects to maintain leadership in order volume share [58][60]. Other Important Information - The company has a minimum cash requirement of approximately $1 billion for working capital, with excess cash allocated for strategic investments [93]. - The acquisition of SevenRooms is seen as an opportunity to expand the company's service offerings beyond restaurants, potentially enhancing its marketing capabilities [92][96]. Q&A Session Summary Question: Can you discuss the international competitive landscape and the growth of the European market? - Management highlighted the strong track record in international markets and the potential for scale through the Deliveroo acquisition, which could enhance local commerce products [11][12]. Question: What factors are driving increased spend per customer in grocery? - The increase in spend is attributed to broader use cases and improved product quality, with a focus on expanding selection and enhancing customer experience [24][25][56]. Question: How does the company view the impact of tariffs and pricing strategies? - Management noted that current tariffs have not significantly affected consumer behavior, and the company is focused on maintaining affordability and quality [12][13]. Question: What is the company's approach to acquisitions and how does it impact earnings? - The company maintains a high bar for M&A, focusing on opportunities that expand the addressable market and enhance operational capabilities [20][22]. Question: Can you elaborate on the affordability initiatives and their impact on margins? - The affordability initiatives are designed to drive overall profit dollars rather than optimize margin percentages, with expectations for improved take rates in the future [40][43]. Question: What is the vision for DashPass and its evolution? - DashPass is viewed as a membership program aimed at maximizing utility for consumers, with ongoing improvements to enhance its value proposition [70][71].

Financial Data and Key Metrics Changes - The company reported strong performance in Q1 2025, with consistent growth in gross order value (GOV) and EBITDA profit dollars [34][36][120] - The net revenue margin decreased quarter on quarter, attributed to affordability initiatives and seasonality effects [39][43] Business Line Data and Key Metrics Changes - The new verticals business, including grocery, showed strong growth with an increasing number of monthly active users (MAUs) [24][25] - The grocery segment is becoming a larger component of the overall business, with increasing basket sizes driven by consumer habituation [119] Market Data and Key Metrics Changes - The company is expanding its international presence, particularly in Europe, with the potential acquisition of Deliveroo expected to enhance scale and market share [11][22] - The competitive landscape in Europe remains challenging, but the company believes it can leverage its experience to improve Deliveroo's performance [46][78] Company Strategy and Development Direction - The company is focused on increasing its market share through strategic acquisitions and investments in technology and service improvements [12][22] - The strategy includes enhancing the DashPass membership program to provide more value to consumers and drive usage [70][110] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the food delivery market, noting that food delivery remains a frequent form of consumer spending [13][14] - The company is optimistic about future growth, particularly in the grocery segment, and expects to be volume share leaders in the coming year [58][120] Other Important Information - The company is investing in technology, including autonomous delivery solutions, to enhance operational efficiency and customer experience [103][120] - The management emphasized the importance of maintaining a healthy cash balance for operational flexibility, targeting a minimum of approximately $1 billion [92] Q&A Session Summary Question: What is the combined market share of DoorDash, Wolfe, and Deliveroo in Europe? - Management highlighted the potential for increased scale and market presence through the acquisition of Deliveroo, which would enhance their competitive position in Europe [11][22] Question: How is the company positioning itself regarding pricing and tariffs? - Management noted that current tariffs have not significantly impacted consumer behavior, and they are focused on affordability initiatives to maintain customer engagement [12][13] Question: What factors are driving increased spend per customer in grocery? - The company reported that increased selection and improved product quality are driving higher order volumes and customer retention in the grocery segment [25][26] Question: How does the company view the competitive landscape in Europe? - Management acknowledged the competitive nature of the market but expressed confidence in their ability to leverage their experience to improve performance in the region [46][78] Question: What is the long-term vision for DashPass? - The company aims to enhance the DashPass program by increasing its utility and connecting local businesses with consumers more effectively [70][110] Question: What is the expected impact of FX on guidance? - Management indicated that FX is expected to have a minor impact on GOV growth, which is accounted for in their guidance [120][121]

Financial Performance - Total Orders increased 18% year-over-year (Y/Y) to 732 million, and Marketplace GOV increased 20% Y/Y to $23.1 billion[7] - Revenue increased 21% Y/Y to $3.0 billion, with a Net Revenue Margin of 13.1%, flat compared to Q1 2024[19] - GAAP net income attributable to common stockholders rose to $193 million from a loss of $(23) million in Q1 2024[24] - Adjusted EBITDA reached $590 million, up 59% from $371 million in Q1 2024[25] - GAAP gross profit was $1.5 billion, up 31% Y/Y, with gross profit as a percentage of Marketplace GOV at 6.4%[21] - Revenue for Q1 2025 was $3,032 million, up from $2,513 million in Q1 2024, representing a growth of approximately 20.7%[47] - Net income attributable to DoorDash, Inc. common stockholders for Q1 2025 was $193 million, compared to a net loss of $23 million in Q1 2024[47] - Net income for the three months ended March 31, 2025, was $192 million, a significant recovery from a net loss of $25 million in the same period of 2024[49] - Gross profit margin improved to 48.7% in Q1 2025, compared to 44.9% in Q1 2024, showcasing enhanced profitability[52] - Adjusted gross profit for Q1 2025 is expected to be $1,574 million, up from $1,224 million in Q1 2024, reflecting a growth of 28.6%[52] - The company reported a contribution profit of $1,020 million for Q1 2025, an increase from $751 million in Q1 2024, representing a growth of 36%[52] Cash Flow and Assets - Free Cash Flow increased to $494 million in Q1 2025, up from $487 million in Q1 2024[25] - Operating cash flow increased to $635 million in Q1 2025, up from $553 million in Q1 2024, reflecting improved operational efficiency[49] - Cash, cash equivalents, and restricted cash at the end of the period increased to $4,714 million, up from $3,247 million at the end of Q1 2024[49] - Net cash provided by operating activities for Q1 2024 was $1.829 billion, expected to rise to $2.214 billion in Q1 2025[57] Expenses and Projections - GAAP sales and marketing expense was $586 million, up 16% Y/Y, representing 2.5% of Marketplace GOV[22] - Stock-based compensation expense for 2025 is expected to be between $1.1 billion and $1.2 billion[33] - Depreciation and amortization expense for 2025 is projected to be between $600 million and $640 million[33] - Stock-based compensation expenses for Q1 2025 are projected to be $235 million, slightly down from $252 million in Q1 2024, indicating cost management efforts[49] - The company incurred $35 million in legal, tax, and regulatory settlements in Q1 2024, with a forecast of $30 million for Q1 2025[53] - Interest income, net for Q1 2024 was a loss of $45 million, with a similar loss projected for Q1 2025 at $49 million[53] - The company expects to incur $2 million in transaction-related costs in Q2 2024, increasing to $5 million in Q1 2025[53] Acquisitions and Strategic Initiatives - DoorDash announced an agreement to acquire SevenRooms for approximately $1.2 billion, enhancing its hospitality technology capabilities[16] - A formal offer to acquire Deliveroo for £2.9 billion was announced, expected to close in Q4 2025[13] - DoorDash is pursuing acquisitions of Deliveroo and SevenRooms, with expectations regarding their impact on future operations and growth[35] - The company plans to invest in new product development and market expansion, with a focus on enhancing user experience and operational capabilities[50] - The company anticipates continued growth in user data and engagement metrics, supporting its long-term strategic objectives[50] Future Outlook - The company expects Q2 2025 Marketplace GOV to be between $23.3 billion and $23.7 billion, with Adjusted EBITDA projected at $600 million to $650 million[27] - Adjusted EBITDA outlook for 2025 is not provided due to uncertainties, but historical reconciliations are available[29] - Total assets increased from $12,845 million as of December 31, 2024, to $13,572 million as of March 31, 2025[46] - Total liabilities rose from $5,035 million as of December 31, 2024, to $5,177 million as of March 31, 2025[46] - The CEO performance award for 2024 is estimated at $67 million, with a total stock-based compensation of $1.099 billion[55] - Capitalized software and website development costs for Q1 2024 were $208 million, projected to increase to $244 million in Q1 2025[57]

Doordash said the all-cash acquisition of SevenRooms, a New York City-based data platform for restaurants and hotels to manage booking information, will close in the second half of 2025. British food delivery service Deliveroo said Tuesday that they have agreed to a deal with Doordash worth $3.9 billion. "We believe both SevenRooms and Deliveroo will expand our ability to build world class services that increase our potential to grow local commerce and support our financial goals," Doordash said in a releas ...