10-KPeriod: FY2020

DoorDash, Inc. Annual Report, Year Ended Dec 31, 2020

Filed March 5, 2021For Securities:DASH

Summary

DoorDash's March 2021 10-K filing for the fiscal year ended December 31, 2020, highlights a period of significant growth, largely driven by the COVID-19 pandemic which accelerated demand for delivery services. The company reported substantial increases in total orders and marketplace gross order volume (GOV), alongside a notable revenue surge. Despite this growth, DoorDash continued to operate at a net loss, underscoring the high investment required for expansion and market penetration. Key risks identified include intense competition, evolving regulatory landscapes (particularly regarding worker classification), and the potential for slowing growth post-pandemic. The company's IPO in December 2020 provided substantial capital, which is intended for general corporate purposes and further business development.

Financial Highlights

49 data points
Beta

Revenue

$2.89B

Net Income

-$461.00M

-16.0% Net Margin

EPS (Diluted)

$-7.39

Total Assets

$6.35B

Cash & Equivalents

$4.34B

Free Cash Flow

$146.00M

Financial Statements
Beta
Revenue$2.89B
R&D Expenses$321.00M
Operating Expenses$3.32B
Operating Income-$436.00M
Interest Expense$32.00M
Net Income-$461.00M
EPS (Basic)$-7.39
EPS (Diluted)$-7.39
Shares Outstanding (Basic)62.39M
Shares Outstanding (Diluted)62.39M

Key Highlights

  • 1DoorDash experienced a significant surge in total orders and marketplace gross order volume (GOV) in 2020, with total orders growing 210% and marketplace GOV increasing 207% year-over-year, largely attributed to the COVID-19 pandemic's impact on consumer behavior.
  • 2Revenue grew substantially by 226% to $2.89 billion in 2020, outperforming marketplace GOV growth due to improved Dasher efficiency and increased merchant fees.
  • 3The company achieved positive Contribution Profit of $663 million in 2020, a significant improvement from a $200 million loss in 2019, with the Contribution Margin turning positive at 23%.
  • 4Adjusted EBITDA also turned positive, reaching $189 million in 2020, compared to a loss of $475 million in 2019, reflecting improved operating leverage and scale.
  • 5Despite revenue growth, DoorDash reported a net loss of $461 million for 2020, indicating ongoing investments in growth outweighing profitability at this stage.
  • 6The company successfully completed its Initial Public Offering (IPO) in December 2020, raising $3.3 billion in net proceeds to fund operations and future growth initiatives.
  • 7Significant risk factors were highlighted, including intense competition, the potential reclassification of Dashers as employees, and the expectation that growth rates may decelerate as the pandemic subsides.

Frequently Asked Questions

In 2020, DoorDash experienced substantial growth driven by the pandemic, with total orders increasing 210% and revenue growing 226% to $2.89 billion. The company also achieved positive Contribution Profit and Adjusted EBITDA, although it still reported a net loss of $461 million due to ongoing investments in growth.

Key risks include intense competition in the delivery market, the uncertain outcome of legal challenges regarding Dasher classification (potential reclassification as employees), the possibility of slower growth as the COVID-19 pandemic subsides, and the need to continuously attract and retain merchants, consumers, and Dashers in a cost-effective manner.

DoorDash completed its IPO in December 2020, raising $3.3 billion in net proceeds. This capital infusion significantly strengthened its financial position, providing funds for general corporate purposes, working capital, and future investments, while also marking its transition to a publicly traded company.

DoorDash aims to grow by onboarding more merchants, expanding its merchant services, increasing its consumer base and engagement (e.g., through DashPass), and building a reliable and efficient logistics network. They also plan to expand into new verticals beyond food and enhance their technological capabilities.