DoorDash(US:DASH)2024-08-01 20:08Financial 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].