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DoorDash, Inc. (DASH)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered new records in Total Orders (732M), Marketplace GOV ($23.1B), revenue ($3.03B), GAAP net income ($193M), and Adjusted EBITDA ($590M), with Net Revenue Margin down sequentially to 13.1% due to affordability initiatives and mix shift .
  • Versus S&P Global consensus, revenue modestly missed while normalized EPS beat; company Adjusted EBITDA reached $590M, highlighting strong operating leverage, though definitions differ from SPGI’s EBITDA normalization (see Estimates Context) .
  • Q2 2025 guidance: Marketplace GOV $23.3–$23.7B and Adjusted EBITDA $600–$650M; management expects Net Revenue Margin to improve YoY and QoQ and EBITDA/GOV to increase from Q2 to Q3 .
  • Strategic catalysts: announced offer to acquire Deliveroo (£2.9B equity value) and agreement to acquire SevenRooms (~$1.2B), expanding international scale and hospitality software capabilities; management reiterated a disciplined capital allocation and scale-driven profit focus .

What Went Well and What Went Wrong

What Went Well

  • Record scale and profitability: revenue up 21% YoY to $3.03B; GAAP net income swung to $193M from a loss; Adjusted EBITDA reached an all-time high of $590M .
  • Membership and grocery momentum: DashPass/Wolt+ members accelerated; grocery cohorts showed rising baskets and spend on perishables, with AOV uplift from mix shift, supported by stronger selection and quality .
  • Strategic M&A positioning: Deliveroo offer adds European scale and profit pool exposure; SevenRooms extends the Commerce Platform into “marketing as a service,” enabling deeper merchant relationships .

Quotes

  • “We are very pleased with our financial performance and ability to execute against key strategic priorities so far in 2025.”
  • “DashPass had a really strong quarter… all-time high in terms of number of subscribers… order frequency continues to grow.”
  • “With SevenRooms… you can almost view this as marketing as a service… adding more intelligence… to build strong direct relationships with guests.”

What Went Wrong

  • Net Revenue Margin compressed QoQ to 13.1% (from 13.5% in Q4), driven by affordability initiatives and category mix with lower take rates, though management expects improvement in Q2 and 2H .
  • Sales & marketing grew 8% QoQ to $586M given seasonal growth and supply investments, moderating leverage vs prior quarters; management framed this as typical seasonality and reinvestment behind scale .
  • Consensus revenue miss in Q1 versus S&P Global, reflecting affordability investments and mix shift; EBITDA comparability issues versus SPGI’s normalization can obscure headline comparisons (see Estimates Context) .

Financial Results

Consolidated P&L, EPS, Margins (oldest → newest)

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Billions)$2.706 $2.873 $3.032
GAAP Net Income ($USD Millions)$162 $141 $193
Diluted EPS ($USD)$0.38 $0.33 $0.44
Net Revenue Margin (%)13.5% 13.5% 13.1%
Gross Margin (%)47.4% 47.8% 48.7%
Adjusted EBITDA ($USD Millions)$533 $566 $590
Adjusted EBITDA as % of GOV (%)2.7% 2.7% 2.6%

KPIs and Operating Metrics (oldest → newest)

KPIQ3 2024Q4 2024Q1 2025
Total Orders (Millions)643 685 732
Total Orders YoY Growth (%)18% 19% 18%
Marketplace GOV ($USD Billions)$20.002 $21.279 $23.076
Marketplace GOV YoY Growth (%)19% 21% 20%
Contribution Profit ($USD Millions)$930 $968 $1,020
Weighted-Average Diluted Shares (Millions)428 433 436

Balance Sheet and Cash Flow Highlights (Q4 2024 → Q1 2025)

MetricQ4 2024Q1 2025
Cash and Cash Equivalents ($USD Millions)$4,019 $4,500
Total Assets ($USD Millions)$12,845 $13,572
Total Stockholders’ Equity ($USD Millions)$7,803 $8,389
Net Cash from Operating Activities ($USD Millions)$518 (Q4) $635 (Q1)
Free Cash Flow ($USD Millions)$420 (Q4) $494 (Q1)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Marketplace GOV ($USD Billions)Q2 2025N/A$23.3–$23.7 New
Adjusted EBITDA ($USD Millions)Q2 2025N/A$600–$650 New
Net Revenue Margin (%)Q2 2025N/AExpected ↑ YoY and ↑ QoQ New (qualitative)
Adjusted EBITDA as % of GOV (%)Q3 2025 trajectoryN/AExpected ↑ from Q2 to Q3 New (qualitative)
Stock-Based Compensation ($USD Billions)FY 2025~$1.1–$1.2 ~$1.1–$1.2 Maintained
Depreciation & Amortization ($USD Millions)FY 2025~$580–$600 ~$600–$640 Raised

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 & Q4)Current Period (Q1 2025)Trend
Affordability & MixQ3: Ads and logistics efficiency lifted take rate; Q4: unit economics and efficiency improved Q1: QoQ take rate down on affordability and mix; guide improvement in Q2 and 2H Invest-to-grow, margin % near-term pressure, 2H recovery
Grocery PerformanceNew verticals scaling, cohorts improving, strong share gains Larger baskets and increased perishable spend; AOV uplift; share gains Strengthening adoption and monetization
Membership (DashPass/Wolt+)Q4: >22M members exiting 2024 All-time high subscribers; reduced churn; accelerated growth Accelerating
International & DeliverooQ3/Q4: International MAUs, frequency up, positive unit economics Deliveroo offer expands scale/profit pools; focus on Europe; scale drives profit Expansion and integration planning
Autonomy & CapExQ4: Scaling platform; investments ongoing Tablet refresh; autonomy pilots (robots, drones) contributed to higher CapEx Continued selective investment
FX/MacroFX relatively stable in 2024 outlook ~1% FX impact on GOV growth in Q1; embedded in Q2 guidance Modest FX headwind
Regulatory/Portable BenefitsOngoing legal/regulatory expenses noted Portable benefits momentum (PA, potential federal), engagement with cities on policies Constructive advocacy

Management Commentary

  • “Our goal has not been to optimize margin percentage. We’re trying to grow profit dollars… expect Q2 take rate to be higher than Q1 and second half higher than first half.” — CFO Ravi Inukonda .
  • “With SevenRooms… adding more intelligence… marketing as a service.” — CEO Tony Xu .
  • “Scale is more important to profit production than relative positioning.” — CEO Tony Xu (Europe/Deliveroo) .
  • “We continue to invest behind our affordability initiatives as well as our quality and service initiatives.” — CEO Tony Xu .

Q&A Highlights

  • Affordability and take rate: Management leaned into affordability and selection in Q1, impacted take rate, but guided sequential improvement (Q2 and 2H), emphasizing EBITDA dollar growth over margin % .
  • Grocery growth drivers: Broader use cases beyond “top-up,” larger baskets, improved product quality and selection; share gains continue .
  • M&A philosophy: Bar remains high; Deliveroo for European scale and profit pools; SevenRooms extends platform to marketing/intelligence; disciplined IRR focus .
  • CapEx uptick: Merchant tablet refresh and autonomy initiatives (robots, drones); D&A guidance raised .
  • Regulatory: Portable benefits initiatives progressing; ongoing dialogue with cities to balance policy outcomes .

Estimates Context

Values retrieved from S&P Global.

MetricQ1 2025 ConsensusQ1 2025 ActualBeat/Miss
Revenue ($USD)$3,094,460,770*$3,032,000,000 Miss*
Primary EPS (Normalized, $USD)$0.96692*$1.07315*Beat*
EBITDA (SPGI definition, $USD)$588,584,330*$237,000,000*Miss*
Company Adjusted EBITDA ($USD)N/A$590,000,000 —

Notes:

  • DoorDash reports Adjusted EBITDA ($590M) which differs from SPGI’s EBITDA normalization; headline “miss” on SPGI EBITDA is not comparable to company’s non-GAAP Adjusted EBITDA. Use DoorDash-reported Adjusted EBITDA for evaluating operating leverage .
  • For Q2 2025, guidance ($600–$650M Adjusted EBITDA, GOV $23.3–$23.7B) implies continued profit dollar growth; consensus revenue/normalized EPS tracked separately above.*

Guidance Clarifications

  • Q2 2025 Net Revenue Margin expected to improve YoY and QoQ; EBITDA/GOV ratio expected to increase from Q2 to Q3 .
  • FY 2025 SBC ~$1.1–$1.2B (unchanged); FY 2025 D&A ~$600–$640M (raised) .

Additional Relevant Q1 2025 Press Releases

  • DoorDash and Dollar General partner to expand SNAP/EBT acceptance to >16,000 DG stores, nearly doubling DoorDash’s SNAP-enabled network to >35,000 stores, supporting grocery access and membership growth (DashPass SNAP plan) .

Key Takeaways for Investors

  • Scale and leverage intact: record Adjusted EBITDA and GAAP profitability alongside 20% GOV growth; near-term take rate pressure from affordability is intentional reinvestment, with guided recovery in Q2/2H .
  • Membership flywheel: DashPass/Wolt+ acceleration supports frequency and cohort health, underpinning durable revenue and GOV growth .
  • Grocery and new verticals: Rising baskets and AOV with improved selection/quality; continued share gains suggest multi-year runway .
  • M&A adds optionality: Deliveroo expands European profit pools and scale; SevenRooms enhances platform monetization and merchant relationships; capital allocation remains disciplined .
  • Watch margin trajectory: Net Revenue Margin expected to rebound sequentially; Ads growth and unit economics improvement are tailwinds to take rate and profitability .
  • Cash/FCF strength: Operating cash flow and FCF rose YoY; equity and assets expanded; D&A guidance raised modestly .
  • Near-term trading implications: Focus on Q2 guide quality (GOV, EBITDA), updates on M&A progress/regulatory approvals, and affordability impacts on reported margins; narrative likely driven by membership/grocery momentum and disciplined reinvest-to-grow stance .