Q1 2024 Earnings Summary
Reported on Jan 4, 2025 (After Market Close)
Pre-Earnings Price$127.46Last close (May 1, 2024)
Post-Earnings Price$117.25Open (May 2, 2024)
Price Change
$-10.21(-8.01%)
- Strong Growth in Core and New Verticals: DoorDash's U.S. restaurant business is large and continues to grow, gaining share, with increasing users and order frequency. DashPass subscribers are at record highs, and the new verticals business, including grocery, is experiencing significant growth, with the grocery business doubling for three straight quarters ,.
- Improving Profitability and EBITDA Outlook: DoorDash expects higher EBITDA in the second half of 2024 due to increased volume and improved unit economics across all lines of business, following the same pattern as in previous years ,.
- Positive Impact of Product Innovation and Expansion: DoorDash's investments in product improvements and expanding selection are leading to strong growth in their ads business, which is contributing to both revenue and EBITDA. The international business is growing faster than peers, with several countries achieving contribution margin profitability ,.
- The core U.S. restaurant business decelerated slightly in the quarter, indicating potential slowing growth in DoorDash's primary market.
- Regulatory changes in key markets like New York City and Seattle are negatively impacting DoorDash, increasing operational costs and potentially affecting profitability, with uncertainties around the company's ability to fully offset these costs through efficiency improvements.
- DoorDash's third-party logistics model may face cost disadvantages compared to integrated competitors like Walmart and Amazon, potentially limiting DoorDash's ability to compete effectively in larger basket categories like grocery, where cost-to-serve is critical.