DoorDash(US:DASH)2025-05-07 02:50Summary of DoorDash Q1 2025 Earnings Call Company Overview - Company: DoorDash - Quarter: Q1 2025 Key Points Industry and Market Performance - Order Volume: The company achieved 732 million orders in Q1 2025, representing a year-over-year increase of 18.1% driven by growth in total users, increased purchase frequency among core users, and contributions from new verticals [1] - Gross Order Value (GOV): GOV reached $23.08 billion, up 19.9% year-over-year, with an Average Order Value (AOV) of $31.5, reflecting a 1.6% increase year-over-year [1][2] Revenue and Monetization - Revenue: The company reported revenue of $3.03 billion for Q1 2025, a year-over-year increase of 20.7% [2] - Take Rate: The GOV take rate was calculated at 13.1%, which is an increase of 8 basis points year-over-year, although it decreased by 36 basis points compared to Q4 2024 [2] Cost and Profitability - Gross Profit: Adjusted gross profit was $1.46 billion, with a gross margin of 6.3%, down 38 basis points year-over-year [2] - Operating Expenses: - Sales expense ratio: 2.4%, down 6 basis points year-over-year - R&D expense ratio: 1.3%, down 12 basis points year-over-year - Management expense ratio: 1.4%, down 22 basis points year-over-year - Depreciation and amortization expense ratio: 0.7%, down 64 basis points year-over-year - Net Profit: GAAP net profit was $193 million, corresponding to a net margin of 0.8%, an increase of 96 basis points year-over-year [2] Adjusted Financial Metrics - Non-GAAP Net Profit: The adjusted net profit for Q1 2025 was $475 million, with a net margin of 2.1%, an increase of 68 basis points year-over-year [3] Strategic Acquisitions - Acquisition of Deliveroo: The acquisition price was set at 180 pence per share, a premium of approximately 4.6% over Deliveroo's previous closing price of 172 pence. This acquisition will enable DoorDash to enter the delivery markets in the UK, Europe, and the Middle East, expanding its operations to over 40 countries [3] - Acquisition of SevenRooms: SevenRooms is a marketing platform for hospitality clients, covering over 13,000 restaurants, hotels, and nightlife brands, including high-end clients like Marriott and MGM. This acquisition signifies a strategic shift for DoorDash from "delivery to home" to "dine-in" services [3] - Market Potential: The U.S. dine-in restaurant market is estimated to exceed $300 billion. If the online penetration rate reaches 5%, DoorDash could capture a market share of 70%, potentially contributing over $10 billion in Gross Transaction Value (GTV) [3]