DoorDash Delivers: Earnings Review - Reiterating A Buy

Core Viewpoint - DoorDash, Inc. reported strong 2Q24 earnings, indicating a positive growth trajectory supported by international expansion and grocery offerings, despite challenges in the tech sector [1][2] Financial Performance - Revenue for 2Q24 reached $2.63 billion, a 23% increase year-over-year, with Marketplace GOV at $19.7 billion, up 20% year-over-year, surpassing guidance [1][2] - Total orders increased to 635 million, reflecting a 19% year-over-year growth [2] - GAAP net loss narrowed to $158 million from $172 million in 2Q23, with adjusted EBITDA at an all-time high of $430 million [2][4] - Free cash flow improved to $451 million, up from $331 million in the previous year [2] Growth Catalysts - The grocery segment is showing strong momentum, with a notable partnership with Chase enhancing Dash's market position [3] - DashPass subscriber base reached an all-time high, indicating successful affordability efforts [3] - Management is focused on improving order frequency and service quality, leading to better engagement from new customer cohorts [3] Valuation Insights - The EV/Sales ratio for 2024 is 4.3, higher than the peer average of 2.6, reflecting its growth stock status [4] - Analyst sentiment is positive, with 20% rating it a strong buy and no analysts recommending a sell [4] - The median price target has increased from $136 in May to $142.5, supporting a bullish outlook [4] Future Outlook - The company is expected to continue its growth trajectory in 3Q24, particularly in international markets, leveraging past partnerships for share gains [7] - Management's strategy focuses on driving scale and efficiency, which is anticipated to yield long-term benefits [7]