DoorDash, Inc. (NASDAQ: DASH) today announced its financial
results for the quarter ended March 31, 2024.
In Q1 2024, we set new quarterly records for Total Orders,
Marketplace GOV, and revenue, while improving our net loss compared
to a year ago. An evergreen goal for us is to execute at a high
level against our operational targets, as this drives incremental
scale and efficiency that we can reinvest to solve new problems for
merchants, consumers, and Dashers. We executed well from this
perspective in Q1 2024, which helped us expand local commerce in
the communities we operate in and increase our long-term growth and
profit potential. We hope to continue our progress in the quarters
and years to come.
First Quarter 2024 Key Financial Metrics
- Total Orders increased 21% year-over-year (Y/Y) to 620 million
and Marketplace GOV increased 21% Y/Y to $19.2 billion.
- Revenue increased 23% Y/Y to $2.5 billion and Net Revenue
Margin increased to 13.1% from 12.8% in Q1 2023.
- GAAP net loss including redeemable non-controlling interests
was $25 million compared to $162 million in Q1 2023, and Adjusted
EBITDA increased to $371 million from $204 million in Q1 2023.
Three Months Ended
(in millions, except percentages)
Mar. 31,
2023
Jun. 30, 2023
Sept. 30,
2023
Dec. 31,
2023
Mar. 31,
2024
Total Orders
512
532
543
574
620
Total Orders Y/Y growth
27
%
25
%
24
%
23
%
21
%
Marketplace GOV
$
15,913
$
16,468
$
16,751
$
17,639
$
19,239
Marketplace GOV Y/Y growth
29
%
26
%
24
%
22
%
21
%
Revenue
$
2,035
$
2,133
$
2,164
$
2,303
$
2,513
Revenue Y/Y growth
40
%
33
%
27
%
27
%
23
%
Net Revenue Margin
12.8
%
13.0
%
12.9
%
13.1
%
13.1
%
GAAP gross profit
$
921
$
951
$
962
$
1,026
$
1,129
GAAP gross profit as a % of Marketplace
GOV
5.8
%
5.8
%
5.7
%
5.8
%
5.9
%
Contribution Profit
$
533
$
620
$
640
$
689
$
751
Contribution Profit as a % of Marketplace
GOV
3.3
%
3.8
%
3.8
%
3.9
%
3.9
%
GAAP net loss including redeemable
non-controlling interests
$
(162
)
$
(172
)
$
(75
)
$
(156
)
$
(25
)
GAAP net loss including redeemable
non-controlling interests as a % of Marketplace GOV
(1.0
)%
(1.0
)%
(0.4
)%
(0.9
)%
(0.1
)%
Adjusted EBITDA
$
204
$
279
$
344
$
363
$
371
Adjusted EBITDA as a % of Marketplace
GOV
1.3
%
1.7
%
2.1
%
2.1
%
1.9
%
Basic shares, options and RSUs outstanding
as of period end
444
449
450
450
450
Our Performance
In Q1 2024, we improved logistics quality and efficiency and
drove incremental operational scale, much of which we used to
expand the selection we offer, improve average affordability, and
further increase delivery speed and quality. In the vast majority
of communities we operate in, our solid execution contributed to
greater choice for consumers, higher sales for merchants, increased
earnings for Dashers, and improved profitability in our
business.
We continued to increase selection on our DoorDash Marketplace
and our Wolt Marketplace (the "Marketplaces") in Q1 2024, both
inside and outside of the restaurant category. We also continued
working to improve affordability, increase delivery speed, and
lower error rates. Progress in these areas is rarely linear and can
seem slow at times, but the impact from our work continues to
compound, and over the last two years, we have significantly
reduced average delivery time, defect rate, and net consumer fees
per order1 on our DoorDash Marketplace. We believe these efforts
are contributing to a steadily improving consumer experience that
contributed directly to the Y/Y and quarter-over-quarter (Q/Q)
increases in consumers, DashPass members, and average engagement on
our Marketplaces in Q1 2024.
In Q1 2024, Total Orders increased 21% Y/Y to 620 million and
Marketplace GOV increased 21% Y/Y to $19.2 billion. We remain
pleased with our execution against volume goals in all major areas
of our business and, based on third party data, believe we gained
category share on a Y/Y and Q/Q basis in our U.S. restaurant
marketplace, U.S. new verticals marketplace, and in the vast
majority of our international markets. Adjusting for the extra day
in Q1 2024 due to the leap year, Y/Y growth in Marketplace GOV in
our U.S. new verticals marketplace remained consistent with Q4
2023, with more than 100% Y/Y growth in the U.S. grocery category;
Y/Y growth in Marketplace GOV in our U.S. restaurant marketplace
decelerated slightly compared to Q4 2023; and Y/Y growth in
Marketplace GOV in our international markets remained consistent
with the growth rate2 in 2023. Total Orders in Platform Services3
accelerated for the fourth consecutive quarter and grew faster than
Total Orders in our Marketplaces in Q1 2024.
Revenue increased 23% Y/Y in Q1 2024 to $2.5 billion, due
primarily to the Y/Y increase in Marketplace GOV. Net Revenue
Margin was 13.1% in Q1 2024, up 27 basis points Y/Y and stable Q/Q.
The Y/Y increase in Net Revenue Margin in Q1 2024 was due primarily
to an increasing contribution from advertising.
GAAP cost of revenue, exclusive of depreciation and
amortization, was $1.3 billion in Q1 2024, up 24% Y/Y and 8% Q/Q.
Both the Y/Y and Q/Q increases were primarily due to increases in
Total Orders and Marketplace GOV. As a percentage of Marketplace
GOV, GAAP cost of revenue, exclusive of depreciation and
amortization, was 6.9% in Q1 2024, compared to 6.7% in Q1 2023 and
7.0% in Q4 2023. The Y/Y increase in GAAP cost of revenue,
exclusive of depreciation and amortization, as a percentage of
Marketplace GOV was driven primarily by an increase in insurance
costs and costs associated with our first party distribution
business.
GAAP gross profit as a percentage of Marketplace GOV was 5.9% in
Q1 2024, up slightly on a Y/Y and Q/Q basis. Adjusted Gross Profit
as a percentage of Marketplace GOV was 6.4% in Q1 2024, up slightly
Y/Y and largely stable Q/Q, as improvements in unit economics in
our U.S. restaurant marketplace, U.S. new verticals marketplace,
and international markets were largely offset by a mix shift in our
business to lower margin areas.
GAAP sales and marketing expense was $504 million in Q1 2024, up
2% Y/Y and 10% Q/Q. The Y/Y increase was driven primarily by an
increase in personnel related costs, partially offset by a decrease
in advertising expenses. The Q/Q increase was driven primarily by
an increase in advertising expenses. As a percentage of Marketplace
GOV, GAAP sales and marketing expense was 2.6% in Q1 2024, down
from 3.1% in Q1 2023 and consistent with 2.6% in Q4 2023.
GAAP research and development expense was $279 million in Q1
2024, up 21% from $231 million in Q1 2023 and up 10% from $253
million in Q4 2023. The Y/Y and Q/Q increases were driven primarily
by an increase in personnel related expenses. As a percentage of
Marketplace GOV, GAAP research and development expense was 1.5% in
Q1 2024, which was largely consistent with 1.5% in Q1 2023 and 1.4%
in Q4 2023.
GAAP general and administrative expense was $319 million in Q1
2024, up 12% from $285 million in Q1 2023 and consistent with $320
million in Q4 2023. The Y/Y increase was primarily driven by
increases in litigation reserves, personnel related costs, credit
card chargebacks and bad debt expense. As a percentage of
Marketplace GOV, GAAP general and administrative expense was 1.7%
in Q1 2024, down from 1.8% in Q1 2023 and 1.8% in Q4 2023.
The combination of growth in revenue and disciplined fixed cost
management drove an improvement in GAAP net loss including
redeemable non-controlling interests to $25 million in Q1 2024,
compared to GAAP net loss including redeemable non-controlling
interests of $162 million in Q1 2023 and $156 million in Q4
20234.
Q1 2024 Adjusted EBITDA reached an all-time high of $371 million
compared to $204 million in Q1 2023 and $363 million in Q4 2023.
Adjusted EBITDA as a percentage of Marketplace GOV was 1.9% in Q1
2024, compared to 1.3% in Q1 2023 and 2.1% in Q4 2023.
In Q1 2024, we generated net cash provided by operating
activities of $553 million and Free Cash Flow of $487 million, up
from $397 million and $316 million, respectively in Q1 2023.
A Policy Note
In order for our business to succeed, we must provide attractive
earnings opportunities to Dashers. While the new earnings standards
in Seattle and New York City purport to do the same, their design
is increasing costs to consumers, reducing sales to merchants, and
providing less work to fewer people. Based on an analysis of data
following implementation of the new earnings standards, we estimate
local merchants will earn at least $40 million less annually from
the DoorDash Marketplace in Seattle and at least $110 million less
annually from the DoorDash Marketplace in New York City due to the
new earnings standards. For Dashers, wait times between orders have
more than tripled in Seattle and the number of new Dashers in New
York City has fallen by 20% compared to before the new earnings
standards took effect. This means our platform has become less
accessible and less flexible for the people who use it to generate
incremental income. This is an unfortunate, though predictable,
outcome.
Although the new regulations are negatively impacting our
ability to serve merchants, Dashers, and consumers in Seattle and
New York City, those two markets represent a small portion of our
Total Orders. Consequently, we estimate the regulations reduced our
Total Orders by less than 1% in Q1 2024. Looking forward, we intend
to manage our business in these markets with the parallel goals of
protecting the accessibility and flexibility that make dashing
unique, empowering local merchants to build successful businesses
in the digital economy, serving consumers a high quality
experience, and maximizing our long-term free cash flow
potential.
On a more productive note, we recently launched a
first-of-its-kind six-month pilot program to test portable benefits
for eligible Dashers in Pennsylvania. We believe dashing is an
innovation in the labor market that many still do not understand,
which is why some policies aimed at it damage individual access and
choice, and reduce productive capacity in the economy. We hope our
portable benefits pilot will better support Dashers while
protecting the accessibility, flexibility, and incrementality that
makes dashing attractive to millions of people each quarter. We are
optimistic about this test and hope it will serve as a model for
other markets.
____________________
1
Net consumer fee includes service fees,
delivery fees, small order, and legislative fees, net of DoorDash
funded discounts and promotions on fees.
2
On a pro forma basis, including results
from Wolt for all periods.
3
We do not report Marketplace GOV from
Platform Services orders, as these services support order volume
that is generated by first party platforms that are owned and
operated by our merchant partners.
4
Q4 2023 GAAP net loss including redeemable
non-controlling interests included an impairment charge of $101
million.
Financial Outlook
Period
Marketplace
GOV
Adj.
EBITDA
Q2
$19.0 billion - $19.4 billion
$325 million - $425 million
Based on our current outlook and assuming a stock price in line
with recent trading levels, we expect:
- 2024 stock-based compensation to be in a range of $1.1 billion
to $1.2 billion,
- 2024 RSU issuances of 6.0 million to 7.0 million, net of
expected forfeitures, and
- 2024 depreciation and amortization expense of approximately
$560 million to $590 million.
Our outlook assumes that key foreign currency rates remain
relatively stable at current levels. Our outlook also anticipates
significant levels of ongoing investment in new categories and
international markets. We caution investors that consumer spending
in any of our geographies could deteriorate relative to our
outlook, which could drive results below our expectations.
Additionally, our increasing international exposure heightens risks
associated with operating in foreign markets, including
geopolitical and currency risks. Changes in the international
operating environment could negatively impact results versus our
current outlook.
We have not provided GAAP net loss including redeemable
non-controlling interests outlook or a reconciliation of Adjusted
EBITDA outlook to GAAP net loss including redeemable
non-controlling interests as a result of the uncertainty regarding,
and the potential variability of, reconciling items such as taxes
and other items. Accordingly, a reconciliation of Adjusted EBITDA
outlook to GAAP net loss including redeemable non-controlling
interests is not available without unreasonable effort. However, it
is important to note that material changes to reconciling items
could have a significant effect on future GAAP results. We have
provided historical reconciliations of GAAP to non-GAAP metrics in
tables at the end of this release. For more information regarding
the non-GAAP financial measures discussed in this release, please
see "Non-GAAP Financial Measures" below.
Analyst and Investor Conference Call and Earnings
Webcast
DoorDash will host a conference call and webcast to discuss our
quarterly results today at 2:00 p.m. Pacific Time (5:00 p.m.
Eastern Time). Those interested in listening to the call can
register and attend by visiting our Investor Relations page at
https://ir.doordash.com. An archived webcast will be available on
our Investor Relations page shortly after the call.
Available Information
We announce material information to the public about us, our
products and services, and other matters through a variety of
means, including filings with the U.S. Securities and Exchange
Commission (the "SEC"), press releases, public conference calls,
webcasts, the investor relations section of our website
(ir.doordash.com), our blog (doordash.news), and our X account
(@DoorDash) in order to achieve broad, non-exclusionary
distribution of information to the public and for complying with
our disclosure obligations under Regulation FD.
Forward-Looking Statements
This release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
which statements involve substantial risks and uncertainties.
Forward-looking statements generally relate to future events or our
future financial or operating performance. In some cases, you can
identify forward-looking statements because they contain words such
as “may,” "aim," “will,” “should,” “expect,” “plan,” "try,"
“anticipate,” “could,” “would,” “intend,” “target,” “project,”
“contemplate,” “believe,” “estimate,” “predict,” “potential” or
“continue” or the negative of these words or other similar terms or
expressions that concern our expectations, strategies, plans, or
intentions. Forward-looking statements in this release include, but
are not limited to, our expectations regarding our financial
position and operating performance, including our outlook and
guidance for the second quarter of 2024, our expectations regarding
our international and new verticals businesses, our plans and
expectations regarding our investment approach, our expectations
regarding our local commerce opportunity, the impact of policy and
regulatory developments on our business, stock-based compensation
expenses, expenses related to Dashers and Dasher acquisition,
trends in our business, and demand for our platform and for local
commerce platforms in general, and our plans and expectations
regarding share dilution, including equity award issuances. Our
expectations and beliefs regarding these matters may not
materialize, and actual results in future periods are subject to
risks and uncertainties that could cause actual results to differ
materially from those projected, including risks and uncertainties
related to: competition, managing our growth and corporate culture,
financial performance, investments in new geographies, products, or
offerings, our ability to attract merchants, consumers, and Dashers
to our platform, legal proceedings and regulatory matters and
developments, any future changes to our business or our financial
or operating model, and our brand and reputation. The
forward-looking statements contained in this release are also
subject to other risks and uncertainties that could cause actual
results to differ from the results predicted, including those more
fully described in our filings with the SEC, including our Annual
Report on Form 10-K for the year ended December 31, 2023 and our
quarterly reports on Form 10-Q. All forward-looking statements in
this release are based on information available to DoorDash and
assumptions and beliefs as of the date hereof, and we disclaim any
obligation to update any forward-looking statements, except as
required by law.
Use of Non-GAAP Financial Measures
To supplement our financial information presented in accordance
with accounting principles generally accepted in the United States
of America ("GAAP"), we consider certain financial measures that
are not prepared in accordance with GAAP, including adjusted cost
of revenue, adjusted sales and marketing expense, adjusted research
and development expense, adjusted general and administrative
expense, Adjusted Gross Profit, Adjusted Gross Margin, Contribution
Profit, Contribution Margin, Adjusted EBITDA, and Free Cash Flow.
We use these financial measures in conjunction with GAAP measures
as part of our overall assessment of our performance, including the
preparation of our annual operating budget and quarterly forecasts,
to evaluate the effectiveness of our business strategies and to
communicate with our board of directors concerning our business and
financial performance. We believe that these non-GAAP financial
measures provide useful information to investors about our business
and financial performance, enhance their overall understanding of
our past performance and future prospects, and allow for greater
transparency with respect to metrics used by our management in
their financial and operational decision making. We are presenting
these non-GAAP financial measures to assist investors in seeing our
business and financial performance through the eyes of management,
and because we believe that these non-GAAP financial measures
provide an additional tool for investors to use in comparing
results of operations of our business over multiple periods and
with other companies in our industry.
We define adjusted cost of revenue as cost of revenue, exclusive
of depreciation and amortization, excluding stock-based
compensation expense and certain payroll tax expense, allocated
overhead, and inventory write-off related to restructuring.
Allocated overhead is determined based on an allocation of shared
costs, such as facilities (including rent and utilities) and
information technology costs, among all departments based on
employee headcount. We define adjusted sales and marketing expense
as sales and marketing expenses excluding stock-based compensation
expense and certain payroll tax expense, and allocated overhead. We
define adjusted research and development expense as research and
development expenses excluding stock-based compensation expense and
certain payroll tax expense, and allocated overhead. We define
adjusted general and administrative expense as general and
administrative expenses excluding stock-based compensation expense
and certain payroll tax expense, certain legal, tax, and regulatory
settlements, reserves, and expenses, transaction-related costs
(primarily consists of acquisition, integration, and investment
related costs), impairment expenses, and including allocated
overhead from cost of revenue, sales and marketing, and research
and development.
We define Adjusted Gross Profit as gross profit plus (i)
depreciation and amortization expense related to cost of revenue,
(ii) stock-based compensation expense and certain payroll tax
expense included in cost of revenue, (iii) allocated overhead
included in cost of revenue, and (iv) inventory write-off related
to restructuring. Gross profit is defined as revenue less (i) cost
of revenue, exclusive of depreciation and amortization and (ii)
depreciation and amortization related to cost of revenue. Adjusted
Gross Margin is defined as Adjusted Gross Profit as a percentage of
revenue for the same period.
We define Contribution Profit as our gross profit less sales and
marketing expense plus (i) depreciation and amortization expense
related to cost of revenue, (ii) stock-based compensation expense
and certain payroll tax expense included in cost of revenue and
sales and marketing expenses, (iii) allocated overhead included in
cost of revenue and sales and marketing expenses, and (iv)
inventory write-off related to restructuring. We define gross
margin as gross profit as a percentage of revenue for the same
period and we define Contribution Margin as Contribution Profit as
a percentage of revenue for the same period.
Adjusted EBITDA is a measure that we use to assess our operating
performance and the operating leverage in our business. We define
Adjusted EBITDA as net income (loss) including redeemable
non-controlling interests, adjusted to exclude (i) certain legal,
tax, and regulatory settlements, reserves, and expenses, (ii) loss
on disposal of property and equipment, (iii) transaction-related
costs (primarily consists of acquisition, integration, and
investment related costs), (iv) impairment expenses, (v)
restructuring charges, (vi) inventory write-off related to
restructuring, (vii) provision for (benefit from) income taxes,
(viii) interest income, net, (ix) other expense, net, (x)
stock-based compensation expense and certain payroll tax expense,
and (xi) depreciation and amortization expense.
We define Free Cash Flow as cash flows from operating activities
less purchases of property and equipment and capitalized software
and website development costs.
We define Total Orders as all orders completed through our
marketplaces and platform services businesses over the period of
measurement.
We define Marketplace GOV as the total dollar value of orders
completed on our marketplaces, including taxes, tips, and any
applicable consumer fees, including membership fees related to
DashPass and Wolt+. Marketplace orders include orders completed
through Pickup and DoorDash for Business. Marketplace GOV does not
include the dollar value of orders, taxes and tips, or fees charged
to merchants, for orders fulfilled through Drive, Storefront, or
Bbot.
Our definitions may differ from the definitions used by other
companies and therefore comparability may be limited. In addition,
other companies may not publish these or similar metrics. Further,
these metrics have certain limitations in that they do not include
the impact of certain expenses that are reflected in our
consolidated statements of operations. Thus, our adjusted cost of
revenue, adjusted sales and marketing expense, adjusted research
and development expense, adjusted general and administrative
expense, Adjusted Gross Profit, Adjusted Gross Margin, Contribution
Profit, Contribution Margin, Adjusted EBITDA, and Free Cash Flow
should be considered in addition to, not as substitutes for, or in
isolation from, measures prepared in accordance with GAAP.
DOORDASH, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in millions)
(Unaudited)
December 31, 2023
March 31, 2024
Assets
Current assets:
Cash and cash equivalents
$
2,656
$
3,124
Short-term marketable securities
1,422
1,366
Funds held at payment processors
356
394
Accounts receivable, net
533
546
Prepaid expenses and other current
assets
630
700
Total current assets
5,597
6,130
Long-term restricted cash
11
12
Long-term marketable securities
583
646
Operating lease right-of-use assets
436
448
Property and equipment, net
712
705
Intangible assets, net
659
621
Goodwill
2,432
2,386
Non-marketable equity securities
46
46
Other assets
363
456
Total assets
$
10,839
$
11,450
Liabilities, Redeemable Non-controlling
Interests and Stockholders’ Equity
Current liabilities:
Accounts payable
$
216
$
203
Operating lease liabilities
68
64
Accrued expenses and other current
liabilities
3,126
3,476
Total current liabilities
3,410
3,743
Operating lease liabilities
454
483
Other liabilities
162
214
Total liabilities
4,026
4,440
Redeemable non-controlling interests
7
11
Stockholders’ equity:
Common stock
—
—
Additional paid-in capital
11,887
12,177
Accumulated other comprehensive income
(loss)
73
(1
)
Accumulated deficit
(5,154
)
(5,177
)
Total stockholders’ equity
6,806
6,999
Total liabilities, redeemable
non-controlling interests and stockholders’ equity
$
10,839
$
11,450
DOORDASH, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in millions, except share
amounts which are reflected in thousands, and per share
data)
(Unaudited)
Three Months Ended March
31,
2023
2024
Revenue
$
2,035
$
2,513
Costs and expenses:
Cost of revenue, exclusive of depreciation
and amortization shown separately below
1,069
1,330
Sales and marketing
496
504
Research and development
231
279
General and administrative
285
319
Depreciation and amortization
123
142
Restructuring charges
2
—
Total costs and expenses
2,206
2,574
Loss from operations
(171
)
(61
)
Interest income, net
27
45
Other expense, net
(1
)
(2
)
Loss before income taxes
(145
)
(18
)
Provision for income taxes
17
7
Net loss including redeemable
non-controlling interests
(162
)
(25
)
Less: net loss attributable to redeemable
non-controlling interests
(1
)
(2
)
Net loss attributable to DoorDash, Inc.
common stockholders
$
(161
)
$
(23
)
Net loss per share attributable to
DoorDash, Inc. common stockholders, basic and diluted
$
(0.41
)
$
(0.06
)
Weighted-average number of shares
outstanding used to compute net loss per share attributable to
DoorDash, Inc. common stockholders, basic and diluted
390,397
405,482
DOORDASH, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in millions)
(Unaudited)
Three Months Ended March
31,
2023
2024
Cash flows from operating
activities
Net loss including redeemable
non-controlling interests
$
(162
)
$
(25
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
123
142
Stock-based compensation
230
252
Reduction of operating lease right-of-use
assets and accretion of operating lease liabilities
32
26
Other
4
14
Changes in assets and liabilities:
Funds held at payment processors
151
(41
)
Accounts receivable, net
17
(18
)
Prepaid expenses and other current
assets
(75
)
(22
)
Other assets
(8
)
(49
)
Accounts payable
61
(12
)
Accrued expenses and other current
liabilities
51
306
Payments for operating lease
liabilities
(32
)
(27
)
Other liabilities
5
7
Net cash provided by operating
activities
397
553
Cash flows from investing
activities
Purchases of property and equipment
(39
)
(17
)
Capitalized software and website
development costs
(42
)
(49
)
Purchases of marketable securities
(434
)
(529
)
Maturities of marketable securities
504
528
Sales of marketable securities
2
4
Other investing activities
(1
)
(9
)
Net cash used in investing activities
(10
)
(72
)
Cash flows from financing
activities
Proceeds from exercise of stock
options
2
1
Repurchase of common stock
(392
)
—
Other financing activities
—
6
Net cash provided by (used in) financing
activities
(390
)
7
Foreign currency effect on cash, cash
equivalents, and restricted cash
1
(13
)
Net increase (decrease) in cash, cash
equivalents, and restricted cash
(2
)
475
Cash, cash equivalents, and restricted
cash
Cash, cash equivalents, and restricted
cash, beginning of period
2,188
2,772
Cash, cash equivalents, and restricted
cash, end of period
$
2,186
$
3,247
Reconciliation of cash, cash
equivalents, and restricted cash to the condensed consolidated
balance sheets
Cash and cash equivalents
$
1,833
$
3,124
Restricted cash included in prepaid
expenses and other current assets
75
111
Long-term restricted cash
278
12
Total cash, cash equivalents, and
restricted cash
$
2,186
$
3,247
Non-cash investing and financing
activities
Purchases of property and equipment not
yet settled
$
27
$
16
Stock-based compensation included in
capitalized software and website development costs
$
35
$
37
DOORDASH, INC.
NON-GAAP FINANCIAL
MEASURES
(Unaudited)
Three Months Ended
(In millions)
Mar. 31,
2023
Jun. 30,
2023
Sept. 30,
2023
Dec. 31,
2023
Mar. 31,
2024
Cost of revenue, exclusive of depreciation
and amortization
$
1,069
$
1,135
$
1,156
$
1,229
$
1,330
Adjusted to exclude the following:
Stock-based compensation expense and
certain payroll tax expense
(24
)
(43
)
(37
)
(36
)
(33
)
Allocated overhead
(9
)
(8
)
(8
)
(7
)
(8
)
Adjusted cost of revenue
$
1,036
$
1,084
$
1,111
$
1,186
$
1,289
Sales and marketing
$
496
$
471
$
449
$
460
$
504
Adjusted to exclude the following:
Stock-based compensation expense and
certain payroll tax expense
(24
)
(36
)
(30
)
(29
)
(25
)
Allocated overhead
(6
)
(6
)
(6
)
(3
)
(6
)
Adjusted sales and marketing
$
466
$
429
$
413
$
428
$
473
Research and development
$
231
$
269
$
250
$
253
$
279
Adjusted to exclude the following:
Stock-based compensation expense and
certain payroll tax expense
(98
)
(134
)
(119
)
(119
)
(114
)
Allocated overhead
(4
)
(5
)
(5
)
(2
)
(5
)
Adjusted research and development
$
129
$
130
$
126
$
132
$
160
General and administrative
$
285
$
341
$
289
$
320
$
319
Adjusted to exclude the following:
Stock-based compensation expense and
certain payroll tax expense
(84
)
(99
)
(94
)
(88
)
(83
)
Certain legal, tax, and regulatory
settlements, reserves, and expenses(1)
(19
)
(49
)
(44
)
(50
)
(35
)
Transaction-related costs
(1
)
(1
)
—
—
—
Allocated overhead from cost of revenue,
sales and marketing, and research and development
19
19
19
12
19
Adjusted general and administrative
$
200
$
211
$
170
$
194
$
220
(1)
We exclude certain costs and expenses from
our calculation of adjusted general and administrative expense
because management believes that these costs and expenses are not
indicative of our core operating performance, do not reflect the
underlying economics of our business, and are not necessary to
operate our business. These excluded costs and expenses consist of
(i) certain legal costs primarily related to worker classification
matters, as well as a settlement entered into in connection with an
initiative to serve underrepresented communities, (ii) reserves and
settlements or other resolutions for or related to the collection
of sales, indirect, and other taxes that we do not expect to incur
on a recurring basis, (iii) expenses related to supporting various
policy matters, including those related to worker classification,
other labor law matters, and price controls, and (iv) donations as
part of our relief efforts in connection with the COVID-19
pandemic. We believe it is appropriate to exclude the foregoing
matters from our calculation of adjusted general and administrative
expense because (1) the timing and magnitude of such expenses are
unpredictable and thus not part of management’s budgeting or
forecasting process, and (2) with respect to worker classification
matters, management currently expects such expenses will not be
material to our results of operations over the long term as a
result of increasing legislative and regulatory certainty in this
area, including as a result of Proposition 22 in California and
similar legislation.
Three Months Ended
(In millions, except percentages)
Mar. 31,
2023
Jun. 30,
2023
Sept. 30,
2023
Dec. 31,
2023
Mar. 31,
2024
Revenue
$
2,035
$
2,133
$
2,164
$
2,303
$
2,513
Less: Cost of revenue, exclusive of
depreciation and amortization
(1,069
)
(1,135
)
(1,156
)
(1,229
)
(1,330
)
Less: Depreciation and amortization
related to cost of revenue
(45
)
(47
)
(46
)
(48
)
(54
)
Gross profit
$
921
$
951
$
962
$
1,026
$
1,129
Gross Margin
45.3
%
44.6
%
44.5
%
44.6
%
44.9
%
Less: Sales and marketing
(496
)
(471
)
(449
)
(460
)
(504
)
Add: Depreciation and amortization related
to cost of revenue
45
47
46
48
54
Add: Stock-based compensation expense and
certain payroll tax expense included in cost of revenue and sales
and marketing
48
79
67
65
58
Add: Allocated overhead included in cost
of revenue and sales and marketing
15
14
14
10
14
Contribution Profit
$
533
$
620
$
640
$
689
$
751
Contribution Margin
26.2
%
29.1
%
29.6
%
29.9
%
29.9
%
Three Months Ended
(In millions, except percentages)
Mar. 31,
2023
Jun. 30,
2023
Sept. 30,
2023
Dec. 31,
2023
Mar. 31,
2024
Gross profit
$
921
$
951
$
962
$
1,026
$
1,129
Add: Depreciation and amortization related
to cost of revenue
45
47
46
48
54
Add: Stock-based compensation expense and
certain payroll tax expense included in cost of revenue
24
43
37
36
33
Add: Allocated overhead included in cost
of revenue
9
8
8
7
8
Adjusted Gross Profit
$
999
$
1,049
$
1,053
$
1,117
$
1,224
Adjusted Gross Margin
49.1
%
49.2
%
48.7
%
48.5
%
48.7
%
Three Months Ended
(In millions)
Mar. 31,
2023
Jun. 30,
2023
Sept. 30,
2023
Dec. 31,
2023
Mar. 31,
2024
Net loss including redeemable
non-controlling interests
$
(162
)
$
(172
)
$
(75
)
$
(156
)
$
(25
)
Certain legal, tax, and regulatory
settlements, reserves, and expenses(1)
19
49
44
50
35
Transaction-related costs
1
1
—
—
—
Restructuring charges
2
—
—
—
—
Provision for (benefit from) income
taxes
17
(9
)
6
17
7
Interest income, net
(27
)
(34
)
(40
)
(51
)
(45
)
Other expense, net
1
4
1
101
2
Stock-based compensation expense and
certain payroll tax expense
230
312
280
272
255
Depreciation and amortization expense
123
128
128
130
142
Adjusted EBITDA
$
204
$
279
$
344
$
363
$
371
(1)
We exclude certain costs and expenses from
our calculation of Adjusted EBITDA because management believes that
these costs and expenses are not indicative of our core operating
performance, do not reflect the underlying economics of our
business, and are not necessary to operate our business. These
excluded costs and expenses consist of (i) certain legal costs
primarily related to worker classification matters, as well as a
settlement entered into in connection with an initiative to serve
underrepresented communities, (ii) reserves and settlements or
other resolutions for or related to the collection of sales,
indirect, and other taxes that we do not expect to incur on a
recurring basis, (iii) expenses related to supporting various
policy matters, including those related to worker classification,
other labor law matters, and price controls, and (iv) donations as
part of our relief efforts in connection with the COVID-19
pandemic. We believe it is appropriate to exclude the foregoing
matters from our calculation of Adjusted EBITDA because (1) the
timing and magnitude of such expenses are unpredictable and thus
not part of management’s budgeting or forecasting process, and (2)
with respect to worker classification matters, management currently
expects such expenses will not be material to our results of
operations over the long term as a result of increasing legislative
and regulatory certainty in this area, including as a result of
Proposition 22 in California and similar legislation.
Estimate of Certain Components of Stock-Based Compensation
Expense
(in millions)
2023 (Actuals)
2024
2025
2026
CEO performance award(1)
$
104
$
67
$
7
$
—
Wolt retention and revesting
150
144
138
53
Pre-IPO RSUs: amortization of stepped-up
value(2)
67
51
3
—
New hire, continuing employee, and other
grants
767
838 - 938
NA
NA
Total stock-based compensation
$
1,088
$1,100 - 1,200
NA
NA
(1)
In November 2020, our board of directors
granted restricted stock units ("RSUs") to our Chief Executive
Officer, Tony Xu, covering 10,379,000 shares of our Class A common
stock, which we refer to here as the 2020 CEO Performance Award.
The award is intended to be the exclusive equity award to Mr. Xu
over a seven year performance period, which ends November 23, 2027.
The award has nine tranches that are eligible to vest based on the
achievement of stock price goals ranging from $187.60 to $501.00,
measured using an average of our stock price over a consecutive
180-day period during the performance period. For more information
on the 2020 CEO Performance Award, please refer to our annual proxy
statement.
(2)
Certain RSUs awarded prior to or around
the time of our initial public offering have grant-date fair values
that significantly exceed the fair value of the awards (“409A
value”) prevailing at the time they were committed to employees.
The amounts included here represent the stock-based compensation
associated with the excess amount of the grant-date fair value over
the 409A value.
Reconciliation of net cash provided by operating activities
to Free Cash Flow
Trailing Twelve Months
Ended
(in millions)
Mar. 31,
2023
Jun. 30,
2023
Sept. 30,
2023
Dec. 31,
2023
Mar. 31,
2024
Net cash provided by operating
activities
$
784
$
1,012
$
1,211
$
1,673
$
1,829
Purchases of property and equipment
(183
)
(165
)
(139
)
(123
)
(101
)
Capitalized software and website
development costs
(173
)
(194
)
(194
)
(201
)
(208
)
Free Cash Flow
$
428
$
653
$
878
$
1,349
$
1,520
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240501384973/en/
IR Contact: ir@doordash.com
PR Contact: press@doordash.com
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