Q4 2023 Earnings Summary
Reported on Jan 4, 2025 (After Market Close)
Pre-Earnings Price$126.27Last close (Feb 15, 2024)
Post-Earnings Price$111.88Open (Feb 16, 2024)
Price Change
$-14.39(-11.40%)
- Strong growth and improving unit economics in new verticals and international markets: DoorDash's new verticals business accelerated in Q4, showing volume growth and material improvements in unit economics across all major lines. Several international markets have core restaurant businesses that are contribution margin positive, indicating sustainable growth and profitability potential.
- Advertising business contributing significantly to revenue growth and margin improvement: The advertising business has grown commensurate with DoorDash's scale, delivering best-in-class returns for advertisers and contributing to increased net revenue margin in the second half of the year.
- Expansion of DashPass and Wolt+ memberships driving customer retention and order frequency: DashPass and Wolt+ memberships have seen record growth, with international members doubling in the quarter, enhancing customer retention and increasing order frequency.
- Regulatory risks in key markets may increase operational costs. DoorDash faces potential reclassification of workers in Europe due to the upcoming EU platform work directive, which could require changing the employment status of couriers and increase costs significantly.
- Increased investments in international expansion and new verticals are pressuring margins. The company is investing heavily in international markets and new verticals, which may affect contribution margins and delay profitability in these segments.
- Rising regulatory costs in major cities are impacting profitability. DoorDash is absorbing regulatory costs from new minimum wage laws in places like New York City, which may decrease margins and lead to higher costs for consumers.
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