DoorDash(US:DASH)2023-05-04 16:00Financial Performance - Total Orders increased to 512 million in Q1 2023, a 27% YoY growth driven by consumer growth and the acquisition of Wolt[110][111] - Marketplace GOV reached $15.9 billion in Q1 2023, a 29% YoY increase primarily due to organic growth and the Wolt acquisition[110][113] - Revenue grew to $2.035 billion in Q1 2023, a 40% YoY increase, driven by a 29% rise in Marketplace GOV and improved logistics efficiency[110][129] - Contribution Profit increased to $533 million in Q1 2023, up from $319 million in Q1 2022, driven by higher Marketplace GOV and Net Revenue Margin[110][116] - Adjusted EBITDA rose to $204 million in Q1 2023, compared to $54 million in Q1 2022, primarily due to growth in Contribution Profit[110][120] - GAAP Net Loss including redeemable non-controlling interests was $162 million in Q1 2023, slightly improved from $167 million in Q1 2022[110][123] - Net Revenue Margin improved to 12.8% in Q1 2023, up from 11.8% in Q1 2022, indicating better revenue efficiency[110] Cash Flow and Liquidity - Free Cash Flow improved to $316 million in Q1 2023, from negative $91 million in Q1 2022, driven by changes in operating assets and liabilities[121] - The company had $3.7 billion in cash, cash equivalents, and marketable securities as of March 31, 2023, with $1.8 billion in cash and cash equivalents[174] - Net cash provided by operating activities was $397 million in Q1 2023, compared to a net cash used of $20 million in Q1 2022[178] - Cash used in investing activities decreased to $10 million in Q1 2023 from $246 million in Q1 2022, primarily due to lower purchases of marketable securities[183] - Cash used in financing activities was $390 million in Q1 2023, mainly due to $392 million in Class A common stock repurchases[185] - The company's board authorized a $750 million share repurchase program in February 2023[176] Expenses and Investments - Research and Development expenses increased to $231 million in Q1 2023, up from $148 million in Q1 2022, reflecting investments in platform improvements[123][134] - Stock-based compensation expense rose to $230 million in Q1 2023, compared to $129 million in Q1 2022, reflecting increased employee compensation[123] - Cost of revenue increased by $306 million (40%) in Q1 2023 compared to Q1 2022, driven by higher order management and platform costs[131] - Sales and marketing expenses rose by $82 million (20%) in Q1 2023, primarily due to increased advertising and personnel-related costs[133] - Research and development expenses grew by $83 million (56%) in Q1 2023, mainly from higher personnel-related compensation and allocated overhead[135] - General and administrative expenses increased by $40 million (16%) in Q1 2023, driven by higher personnel-related costs offset by lower transaction-related expenses[137] - Depreciation and amortization expenses surged by $64 million (108%) in Q1 2023, primarily due to increased amortization of acquired intangible assets and capitalized software costs[139] Investments and Financial Instruments - The company's investment portfolio consists of short-term fixed income securities, including government and investment-grade debt securities and money market funds, recorded at fair value with unrealized gains or losses reported in stockholders' equity[189] - A hypothetical 100 basis point increase in interest rates would not have materially affected the company's financial statements as of March 31, 2023[190] - The aggregate carrying value of the company's non-marketable equity investments was $125 million as of March 31, 2023[193] Foreign Currency Exposure - The company is exposed to foreign currency exchange rate fluctuations, primarily in the Euro, Canadian dollars, Israeli shekel, and Australian dollars, which could impact reported revenue and expenses[194] - Foreign currency gains and losses were immaterial for the quarter ended March 31, 2023, and a 10% change in exchange rates against the U.S. dollar would not have resulted in a material gain or loss[195] - Translation adjustments from converting foreign subsidiaries' financial statements into U.S. dollars would result in a gain or loss recorded in stockholders' equity[196]