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DoorDash, Inc. (DASH)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 revenue grew 25% YoY to $2.873B as Marketplace GOV rose 21% YoY to $21.279B and orders increased 19% YoY to 685M; Net Revenue Margin held at 13.5% and Adjusted EBITDA hit a record $566M (2.7% of GOV) .
  • GAAP diluted EPS was $0.33 vs $(0.39) in Q4’23 and $0.38 in Q3’24; GAAP net income of $141M declined sequentially vs Q3’s $162M on higher sales & marketing and legal/tax/reg costs .
  • Q1’25 outlook: Marketplace GOV $22.6–$23.0B and Adjusted EBITDA $550–$600M; management expects Adjusted EBITDA margin to increase sequentially from Q1 to Q2 to Q3’25 .
  • Capital return: new $5.0B share repurchase authorization (inclusive of $876M remaining on the prior plan) could support EPS and provide downside support .
  • S&P Global consensus estimates for Q4’24 EPS and revenue were not available for retrieval at time of analysis; comparisons to Street are therefore unavailable (S&P Global data access limit) — see Estimates Context.

What Went Well and What Went Wrong

What Went Well

  • Record profitability with Adjusted EBITDA of $566M (+56% YoY) and GAAP gross profit up 34% YoY to $1.372B, reflecting scale and unit-economics improvements across U.S. restaurants, U.S. new verticals, and international .
  • Strong customer and membership flywheel: MAUs exceeded 42M in December (vs >37M LY), with DashPass/Wolt+ >22M exiting 2024 (vs >18M LY), and >25% of MAUs transacting in new verticals (vs >20% LY) .
  • Management tone constructive on long runway; Tony Xu emphasized “room to run almost everywhere” and focus on product improvements driving both penetration and frequency .

What Went Wrong

  • Sequential profit moderation on GAAP basis: GAAP net income fell to $141M from $162M in Q3’24 as sales & marketing (+12% QoQ) and legal/tax/regulatory expenses lifted G&A (+3% QoQ) .
  • Net Revenue Margin was flat QoQ at 13.5%; CFO cited seasonal Dasher pay as a driver, underscoring mix/seasonality sensitivities despite ad momentum .
  • Outlook watch items: Q1 guide acknowledges headwinds including FX (~1% YoY impact) and prior-year leap year comp; macro/regulatory cautions persist (international exposure, consumer spending) .

Financial Results

Metric (USD unless noted)Q4 2023Q3 2024Q4 2024
Revenue ($MM)$2,303 $2,706 $2,873
Diluted EPS$(0.39) $0.38 $0.33
Marketplace GOV ($MM)$17,639 $20,002 $21,279
Total Orders (MM)574 643 685
Net Revenue Margin13.1% 13.5% 13.5%
GAAP Gross Profit ($MM)$1,026 $1,283 $1,372
Adjusted EBITDA ($MM)$363 $533 $566
Adjusted EBITDA as % of GOV2.1% 2.7% 2.7%

KPIs

  • MAUs (Dec): >42M vs >37M LY
  • DashPass + Wolt+ members (exit 2024): >22M vs >18M LY
  • % MAUs ordering in New Verticals (Dec): >25% vs >20% LY
  • Free Cash Flow (TTM): $1,802M

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Marketplace GOVQ1 2025N/A$22.6B – $23.0B New
Adjusted EBITDAQ1 2025N/A$550M – $600M New
Adjusted EBITDA marginFY 2025 (trend)N/AExpected to rise Q1→Q2→Q3 New
Stock-based compensationFY 2025N/A~$1.1B – $1.2B New
Depreciation & amortizationFY 2025N/A~$580M – $600M New
Marketplace GOVQ4 2024 (from Q3’24 guide)$20.6B – $21.0B Actual $21.279B Beat (above high end)
Adjusted EBITDAQ4 2024 (from Q3’24 guide)$525M – $575M Actual $566M In range (near high end)

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 & Q3)Current Period (Q4)Trend
Ads monetizationAds and platform revenue expanding take rate; discipline to protect UX “Ads had a great year,” focus on relevance/units, balance advertiser ROAS with consumer experience Constructive growth with disciplined pacing
International/WoltPortfolio gross profit positive; gaining share in most markets Growing “substantially faster than peers;” Wolt+ scaling, some markets contribution-positive Strengthening; scale driving efficiency
Grocery/new verticalsHigher frequency and selection gains; SKU/catalog build-out Product improvements (inventory accuracy, affordability, dasher matching); larger baskets as cohorts mature Early innings, improving product-market fit
DashPass/Wolt+Record subs; 18M+ in Q3 >22M combined at year-end; large runway within own ecosystem Accelerating membership base
Take rate / NRMNRM up YoY on ads, logistics efficiency NRM flat QoQ at 13.5%; seasonal Dasher pay impact Stable near term; seasonality visible
Dasher supplyEfficiency gains; regulatory costs easing from Q2 spike Supply “really healthy” outside weather/disasters Adequate capacity
AI / Autonomy—AV as long-term opportunity; LLMs to improve personalization and ops; focus remains mastering physical world Strategic exploration, no near-term revenue
Macro/FX/RegulatoryRegulatory costs down from Q2; Prop 22 upheld Q1 FX headwind (~1% YoY) and leap year comp; international geopolitical/FX risks flagged Manageable but monitored

Management Commentary

  • “There’s room to run almost everywhere… the effect of having invested successfully in scale, having positive margins… you just get increasing ability to reinvest” — Tony Xu, CEO .
  • “International portfolio is gross profit positive… we’re growing substantially faster than peers and gaining share in virtually every country we operate in” — Ravi Inukonda, CFO .
  • On ads: “A healthy marketplace precedes an advertising business… balance advertiser ROAS with no degradation for consumers” — Tony Xu .
  • “We exited 2024 with good momentum… MAUs to an all-time high of over 42 million in December 2024… DashPass and Wolt+ members to over 22 million” — Press release .

Q&A Highlights

  • Profitability drivers: Focus on absolute EBITDA dollars over margin targeting; scale density and logistics efficiency underpin contribution margin progress, including internationally .
  • Grocery/new verticals: Continued cohort maturation from top-up to larger baskets; product work on SKU coverage, accuracy, affordability, and Dasher-task matching; long runway .
  • Ads roadmap: Growth continues with emphasis on relevance, unit expansion, reporting/integrations; partnerships (e.g., Trade Desk) part of the plan; guardrails to protect UX .
  • Q4 strength and Q1 setup: Broad-based growth across restaurants, new verticals, and international; Q1 deceleration considerations include leap year comp and ~1% FX impact YoY .
  • Capital allocation: Board authorized new $5B buyback; management remains opportunistic and return-focused over multi-year horizon .

Estimates Context

  • S&P Global (Capital IQ) consensus estimates for Q4’24 EPS and revenue could not be retrieved due to a temporary access limit. As a result, we cannot present vs-Consensus comparisons for this quarter (S&P Global).
  • Directionally, the company exceeded its prior Q4’24 guidance on GOV and delivered Adjusted EBITDA near the top end of guidance, which often correlates with favorable estimate revisions, but Street comparisons are not shown here .

Key Takeaways for Investors

  • Durable top-line with operating leverage: 25% YoY revenue growth with record Adjusted EBITDA ($566M) and flat NRM QoQ indicates healthy monetization and scaling efficiency .
  • Membership and engagement compounding: MAUs >42M and DashPass/Wolt+ >22M underpin frequency and cross-category expansion, aiding ad monetization and retention .
  • International strengthening: Share gains and gross profit positivity across markets support multi-year profit dollars expansion as density compounds .
  • New verticals runway: Product improvements (accuracy, affordability, matching) and cohort maturation are building a sizable profit-dollar opportunity beyond restaurants .
  • Q1’25 guide solid with sequential margin expansion expected through Q3’25; monitoring FX/leap year comps and international macro risks .
  • Capital returns: $5B buyback authorization offers downside support and potential EPS accretion amid growing FCF ($1.8B TTM) .
  • Ads optionality remains a structural lever; management prioritizes marketplace health, reducing risk of UX trade-offs while expanding high-ROAS inventory .

Appendix: Prior Two Quarters (for trend)

  • Q3 2024: Revenue $2.706B; GOV $20.002B; NRM 13.5%; GAAP NI $162M; Adjusted EBITDA $533M; Q4’24 guide at the time: GOV $20.6–$21.0B, Adj. EBITDA $525–$575M .
  • Q2 2024: Revenue $2.630B; GOV $19.711B; NRM 13.3%; GAAP net loss incl. NCI $(158)M (driven by litigation reserves and lease impairments); Adjusted EBITDA $430M .