Q2 2024 Earnings Summary
Reported on Jan 4, 2025 (After Market Close)
Pre-Earnings Price$108.20Last close (Aug 1, 2024)
Post-Earnings Price$116.66Open (Aug 2, 2024)
Price Change
$8.46(+7.82%)
- DoorDash's advertising business is growing rapidly, contributing significantly to revenue growth and EBITDA improvement, with plans to expand into new categories such as CPG advertisers. ,
- International markets exhibit better retention and frequency than the U.S., indicating strong growth potential and the opportunity to become the largest local commerce platform globally. , ,
- Strong consumer demand and expanding use cases, including non-restaurant categories, are driving increased order frequency and sustained growth on the platform.
- International expansion is lagging behind expectations and may require significant investment to achieve desired penetration levels. Tony Xu stated that "virtually every country outside the U.S. for us is still behind what we think the penetration level ought to be," and there's a "long ways to go on getting restaurant selection where it needs to be."
- Margin improvements are expected to slow down, with new verticals and international operations not yet optimized for efficiency. CFO Ravi Inukonda mentioned that while there's "still a lot of opportunity" to drive margins higher, "it's not going to be at the same clip as we've done over the last couple of years." He also noted that new verticals and international businesses "are not truly optimized for efficiency."
- Growth in advertising revenue may be constrained to avoid negatively impacting consumer experience, potentially limiting future revenue streams. Tony Xu acknowledged that "ads do have an impact, a negative impact on the consumer experience," emphasizing the need to "protect the consumer experience" even as they grow their ads business.