DoorDash(US:DASH)2025-11-06 21:08Financial Performance - Total Orders increased to 776 million in Q3 2025, representing a 21% year-over-year growth compared to Q3 2024[143] - Marketplace Gross Order Value (GOV) rose to $25.0 billion in Q3 2025, a 25% increase year-over-year driven by growth in Total Orders[144] - Revenue for Q3 2025 reached $3.446 billion, reflecting a 27% year-over-year growth from $2.706 billion in Q3 2024[142] - Net income attributable to DoorDash, Inc. common stockholders was $244 million in Q3 2025, compared to $162 million in Q3 2024[154] - Revenue for Q3 2025 increased by $740 million, or 27%, to $3,446 million, driven by a 25% increase in Marketplace GOV[158] - Revenue for the first nine months of 2025 rose by $1.9 billion, or 24%, to $9,762 million, primarily due to a 23% increase in Marketplace GOV[159] Profitability Metrics - Net Revenue Margin improved to 13.8% in Q3 2025, up from 13.5% in Q3 2024, attributed to increased advertising revenue and reduced costs[145] - Contribution Profit for Q3 2025 was $1.268 billion, compared to $930 million in Q3 2024, driven by revenue growth[149] - Adjusted EBITDA increased to $754 million in Q3 2025 from $533 million in Q3 2024, reflecting improved operating performance[151] - Contribution Profit for Q3 2024 was $930 million, increasing to $1,268 million in Q3 2025, with a contribution margin of 34.4% and 36.8% respectively[207] - Adjusted Gross Profit for Q3 2024 was $1,377 million, growing to $1,810 million in Q3 2025, with adjusted gross margins of 50.9% and 52.5%[210] Expenses - Sales and marketing expenses increased to $576 million in Q3 2025, up from $483 million in Q3 2024[154] - Cost of revenue, exclusive of depreciation and amortization, increased by $313 million, or 23%, in Q3 2025, reaching $1,687 million[162] - Research and development expenses rose by $66 million, or 23%, in Q3 2025, totaling $355 million[169] - General and administrative expenses increased by $85 million, or 27%, in Q3 2025, reaching $400 million[172] - Adjusted sales and marketing expense for Q3 2025 was $542 million, up from $447 million in Q3 2024, representing a year-over-year increase of about 21%[201] - Adjusted research and development expense for Q3 2025 was $215 million, compared to $156 million in Q3 2024, indicating a year-over-year increase of approximately 38%[203] - Adjusted general and administrative expense for Q3 2025 was $299 million, an increase from $241 million in Q3 2024, reflecting a year-over-year increase of about 24%[205] Cash Flow and Liquidity - Free Cash Flow for Q3 2025 was $723 million, up from $444 million in Q3 2024, driven by increased cash from operating activities[152] - Cash provided by operating activities for the first nine months of 2025 was $2.0 billion, compared to $1.6 billion for the same period in 2024, reflecting a significant increase[224][226] - The company reported a net cash increase of $3.2 billion for the first nine months of 2025, up from $1.1 billion in the same period of 2024[223] - Cash used in investing activities was $1.3 billion for the first nine months of 2025, primarily due to cash paid for acquisitions of $1.2 billion and purchases of marketable securities of $1.1 billion[227] - As of September 30, 2025, the company had $5.1 billion in cash, cash equivalents, and marketable securities, ensuring liquidity for operations[218] Acquisitions and Investments - The acquisition of Deliveroo was completed on October 2, 2025, expanding the Marketplaces to over 40 countries[138] - The company completed the acquisition of Deliveroo for approximately £2.8 billion, impacting future capital requirements and cash flows[222] - The Deal-Contingent Forward related to the Deliveroo acquisition had a notional amount of approximately £2.8 billion, with an unrealized loss of $12 million recognized during the nine months ended September 30, 2025[241] Taxation - The provision for income taxes for Q3 2025 was primarily due to state and foreign income tax expenses, while the benefit from income taxes in Q3 2024 was driven by losses in non-U.S. jurisdictions[188] - The benefit from income taxes for the first nine months of 2025 included a one-time tax benefit from the release of a portion of the U.S. valuation allowance related to acquisitions, offset by state and foreign income tax expenses[189] - The effective tax rate is subject to significant variation due to factors such as pre-tax income, changes in stock price, and acquisitions, impacting the overall tax expense recognized[186] - The company maintains a valuation allowance for net deferred tax assets in the U.S. and Finland until it is more likely than not that the benefits will be realized[187] Other Financial Information - Interest income, net increased by $17 million, or 31%, in Q3 2025, totaling $71 million[180] - Other expense, net increased by $75 million in Q3 2025, primarily due to a change in fair value of the Deal-Contingent Forward[183] - Depreciation and amortization expenses increased by $31 million, or 22%, in Q3 2025, totaling $169 million[175] - A share repurchase program was authorized in February 2025 for up to $5.0 billion, with $5.0 billion remaining available as of September 30, 2025[221] - The company intends to use the net proceeds from the recent issuance of $2.75 billion in convertible senior notes for general corporate purposes[219] - Foreign currency gains and losses were immaterial for the three and nine months ended September 30, 2025, indicating limited impact from exchange rate fluctuations[240] - The company has a non-marketable equity investment carrying value of $47 million as of September 30, 2025, which is subject to impairment risks[238] - A hypothetical 100 basis point increase in interest rates would not materially affect the company's financial statements based on the investment portfolio balance as of September 30, 2025[236] - The U.S. enacted tax reform legislation allowing for immediate expensing of domestic R&D expenses, which has no material impact on the company's financial statements[191]