DoorDash(DASH) - 2024 Q3 - Quarterly Report

Revenue Growth - Revenue grew to $2.706 billion in Q3 2024, up 25$542 million (25%) in Q3 2024 compared to Q3 2023, driven by a 19% increase in Marketplace GOV and higher advertising revenue[116] - Revenue increased by $1.5 billion (24$2.706 billion, up from $2.164 billion in the same period in 2023, representing a 25$20.0 billion in Q3 2024, a 19% increase compared to the same quarter in 2023[102] Profitability Metrics - Net Revenue Margin improved to 13.5% in Q3 2024, up from 12.9% in Q3 2023[103] - Contribution Profit increased to $930 million in Q3 2024, compared to$640 million in Q3 2023[105] - Adjusted EBITDA rose to $533 million in Q3 2024, up from$344 million in Q3 2023[107] - GAAP net income attributable to DoorDash common stockholders was $162 million in Q3 2024, compared to a loss of$73 million in Q3 2023[99] - Contribution profit for the three months ended September 2024 reached $930 million, up from$640 million in 2023, with a contribution margin increase from 29.6% to 34.4%[161] - Adjusted EBITDA for the three months ended September 2024 increased to $533 million, up from$344 million in 2023[168] Cost and Expense Analysis - Cost of revenue increased to $1.374 billion in Q3 2024, up from$1.156 billion in Q3 2023[109] - Research and development expenses grew to $289 million in Q3 2024, compared to$250 million in Q3 2023[109] - Cost of revenue increased by $218 million (19$157 million increase in order management costs and a $35 million increase in platform costs[120] - Cost of revenue increased by$729 million (22%) in the first nine months of 2024, primarily due to a $609 million increase in order management costs[121] - Sales and marketing expenses increased by$34 million (8%) in Q3 2024, driven by a $20 million increase in personnel-related compensation and a$12 million increase in advertising expenses[123] - Research and development expenses increased by $39 million (16$40 million increase in personnel-related compensation and allocated overhead[126] - General and administrative expenses increased by $26 million (9$17 million increase in sales and indirect taxes and a $13 million increase in personnel-related compensation[129] - Depreciation and amortization expenses increased by$10 million (8%) in Q3 2024, primarily due to a $12 million increase in amortization expense related to capitalized software and website development costs[133] - Adjusted cost of revenue for Q3 2024 was$1,329 million, up from $1,111 million in Q3 2023, after excluding stock-based compensation and allocated overhead[152] - Adjusted sales and marketing expense for Q3 2024 was$447 million, compared to $413 million in Q3 2023, after excluding stock-based compensation and allocated overhead[154] - Adjusted research and development expense for Q3 2024 was$156 million, up from $126 million in Q3 2023, after excluding stock-based compensation and allocated overhead[156] - Adjusted general and administrative expense for Q3 2024 was$241 million, compared to $170 million in Q3 2023, after excluding stock-based compensation, legal expenses, and allocated overhead[158] Cash Flow and Liquidity - Free Cash Flow reached$444 million in Q3 2024, up from $324 million in Q3 2023[108] - Free cash flow for the nine months ended September 2024 was$1.382 billion, compared to $951 million in the same period in 2023[171] - The company had$5.8 billion in cash, cash equivalents, and marketable securities as of September 30, 2024[173] - Net cash provided by operating activities increased to $1.614 billion in the first nine months of 2024, up from$1.188 billion in the same period in 2023[177] - Cash used in investing activities rose to $281 million in the first nine months of 2024, compared to$223 million in the same period in 2023[177] - Cash used in financing activities decreased significantly to $211 million in the first nine months of 2024, down from$702 million in the same period in 2023[177] - Cash provided by operating activities in 2024 included $828 million in non-cash stock-based compensation expense and$420 million in non-cash depreciation and amortization expense[178] - Cash provided by operating activities in 2023 included $819 million in non-cash stock-based compensation expense and$379 million in non-cash depreciation and amortization expense[179] - Investing activities in 2024 included $1.5 billion in purchases of marketable securities and$1.5 billion in proceeds from maturities and sales of marketable securities[180] - Financing activities in 2024 included $224 million in repurchases of Class A common stock, partially offset by$7 million from exercise of stock options[182] Financial Position and Capital Structure - The company's accumulated deficit as of September 30, 2024, was $5.4 billion[174] - The company authorized a share repurchase program of up to$1.1 billion in February 2024, with $876 million remaining available as of September 30, 2024[175] - The company's revolving credit facility provides for an$800 million unsecured revolving credit facility maturing on April 26, 2029[172] - The company's non-marketable equity investments had an aggregate carrying value of $40 million as of September 30, 2024[189] Interest and Tax Impact - Interest income, net increased by$14 million (35%) in Q3 2024, driven by higher average interest rates on marketable securities[137] - Other expense, net increased by $5 million (500$6 million, primarily driven by losses in non-U.S. jurisdictions, compared to a provision of $6 million in Q3 2023 due to positive pre-tax book income in the U.S.[144] - For the first nine months of 2024, the provision for income taxes was$2 million, driven by foreign tax expense offset by tax benefits from 2023 losses in non-U.S. jurisdictions, compared to $14 million in the same period of 2023 due to U.S. pre-tax book income[145] Risk and Sensitivity Analysis - A hypothetical 100 basis point increase in interest rates would not have materially affected the company's financial statements as of September 30, 2024[187] - The company estimated that a 10$1.283 billion, compared to $962 million in 2023, with a gross margin improvement from 44.5$1.377 billion, compared to $1.053 billion in 2023, with an adjusted gross margin improvement from 48.7% to 50.9%[163]