DoorDash Inc (DASH)

International Market Margins
Q: Are international cohorts seeing margin improvements like in the U.S.?
A: Management confirms that international markets are showing similar top-line and bottom-line progress as the U.S., with improvements in contribution margins as cohorts mature. They are gaining share in every market, and the international business remains gross profit positive. -

Revenue Growth vs. GOV
Q: What's driving revenue growth outpacing GOV growth?
A: Revenue growth is outpacing GOV due to advertising and efficiencies from the commerce platform. Specifically, advertising and leverage from DashPass costs were key drivers in Q3. Management expects revenue to continue outpacing GOV growth but not linearly every quarter. -

Gross Profit Margin Drivers
Q: What contributed to gross profit margin outperformance?
A: The outperformance was driven by advertising growth, reductions in regulatory costs, and logistics efficiencies. Management emphasizes they focus on maximizing profit dollars long-term and reinvest efficiency gains back into the business. -

European M&A Strategy
Q: Why acquire TAS in Romania?
A: The acquisition of TAS in Romania aligns with their high standards for M&A. Bolt's strong performance over 10 years and the attractive market in Romania make the combination exciting for expansion and long-term cash flows. -

Adding Large Grocers
Q: Are we closer to adding major grocers like Wegmans?
A: Management is excited about grocery progress, having added large grocers including Wegmans. They continue to build catalogs and improve inventory reliability, positioning DoorDash as the first choice for new grocery delivery customers. -

Grocery Price Strategy
Q: Will grocery prices match in-store prices long-term?
A: DoorDash aims to offer prices as competitive and affordable as possible, working with retail partners. Some already match in-store prices, and they strive to improve further while ensuring customers get exactly what they ordered, faster than they can do on their own. -

Customer Cohort Demographics
Q: Who are the new customer cohorts?
A: New cohorts are similar demographically, attracting users from suburban markets. Some start their journey with grocery as their first order, adding net new consumers to the platform. Existing cohorts show strong retention and increased wallet share. -

Defending Against Competition
Q: What makes DoorDash defensible in grocery competition?
A: Management believes building the best product with highest retention and order frequency is key. DoorDash is often the first choice for new grocery delivery customers, benefiting from strong product execution, improved selection, pricing, and service. -

Marketing Leverage & Incentives
Q: How does marketing leverage contribute to margins?
A: Sales and marketing leverage, driven by product improvements leading to higher Dasher and consumer retention, contributes to margin expansion. Management expects continued product improvements will further drive leverage, though at a slower pace than previous years. -

Focus on Big Grocery Baskets
Q: How important are large grocery baskets to profits?
A: Large baskets are not essential for profitability due to DoorDash's low delivery cost structure. They've built a high-growth business with smaller baskets, introducing customers to the platform. Larger baskets are a bonus but not necessary for financial sustainability. -

Autonomous Vehicles in Delivery
Q: Is DoorDash exploring autonomous delivery vehicles?
A: Management is excited about the potential of autonomous vehicles, working on the problem since 2017. They acknowledge it's different from ride-hailing autonomy, particularly in loading and unloading. They are taking a first-principles approach and collaborating with partners. -

Partnerships and Lyft
Q: What's the strategy behind the Lyft partnership?
A: The Lyft partnership aims to add engagement and new members to DashPass, offering Lyft riders access to DoorDash's local commerce platform. While partnerships are important, the main focus remains on building great products for organic growth. -

DashMart Progress
Q: What's the update on DashMart's business model?
A: DashMarts have progressed well, expanding nationally and proving capability in running warehouses. They're partnering with retailers, providing infrastructure to expand their reach. DashMarts contribute both independently and through partnerships. -

Merchant Feedback on Platform
Q: Any feedback from merchants on new products?
A: Merchants are enthusiastic about the DoorDash Commerce Platform, with hundreds of thousands already participating. They value partnering with the leading local commerce marketplace to enhance their digital presence. -

Trends in Sponsored Listings
Q: What's new with restaurant sponsored listings and ads?
A: The ads business continues strong progress, driven by a growing marketplace. Advertisers see leading returns on ad spend, and consumer conversion rates are improving, approaching organic levels. -

DashPass Urban vs. Suburban
Q: Are DashPass members concentrated in certain areas?
A: DashPass membership shows strength across both urban and suburban markets, contributing to overall share gains. Partnerships like Lyft are expected to benefit members in any geography. -

CPG Advertising Interest
Q: Are CPG advertisers increasing spend on DoorDash?
A: Yes, CPG advertisers are showing more interest due to DoorDash's growth and ability to offer cross-category sales data. The maturing product portfolio enhances opportunities for both CPG and restaurant ad partners. -