10-KPeriod: FY2023

DoorDash, Inc. Annual Report, Year Ended Dec 31, 2023

Filed February 20, 2024For Securities:DASH

Summary

DoorDash, Inc. demonstrated significant top-line growth in its 2023 fiscal year, with revenue increasing by 31% year-over-year to $8.6 billion. This growth was primarily driven by a 25% increase in Marketplace Gross Order Value (GOV) to $66.8 billion, reflecting increased consumer engagement and the full-year inclusion of Wolt's operations. The company also showed improved profitability metrics, with Contribution Profit more than doubling to $2.5 billion and Adjusted EBITDA reaching $1.2 billion, a substantial increase from the previous year. This improvement was attributed to better logistics efficiency, growth in advertising revenue, and cost management. Despite the strong financial performance, DoorDash continues to operate in a highly competitive landscape. The company faces ongoing risks related to evolving regulations, particularly concerning worker classification, and potential liabilities from legal proceedings. Management's focus remains on expanding its platform services beyond food delivery and optimizing operational efficiency to drive long-term shareholder value.

Financial Highlights

49 data points
Beta

Revenue

$8.63B

Net Income

-$558.00M

-6.5% Net Margin

EPS (Diluted)

$-1.42

Total Assets

$10.84B

Cash & Equivalents

$2.66B

Free Cash Flow

$1.55B

Financial Statements
Beta
Revenue$8.63B
R&D Expenses$1.00B
Operating Expenses$9.21B
Operating Income-$579.00M
Net Income-$558.00M
EPS (Basic)$-1.42
EPS (Diluted)$-1.42
Shares Outstanding (Basic)392.95M
Shares Outstanding (Diluted)392.95M

Key Highlights

  • 1Revenue grew 31% year-over-year to $8.6 billion, driven by a 25% increase in Marketplace GOV to $66.8 billion.
  • 2Contribution Profit more than doubled to $2.5 billion, indicating improved operational efficiency and profitability.
  • 3Adjusted EBITDA surged to $1.2 billion, a significant increase from $361 million in the prior year, demonstrating strong operating leverage.
  • 4The company returned $750 million to shareholders through its share repurchase program during 2023, completing the authorized amount.
  • 5DoorDash announced a new $1.1 billion share repurchase program in February 2024, signaling confidence in its financial position and commitment to returning capital to shareholders.
  • 6The company continues to operate with a substantial accumulated deficit of $5.2 billion, though the net loss narrowed to $558 million in 2023 from $1.4 billion in 2022.
  • 7International operations, notably through the full year inclusion of Wolt, contributed significantly to the overall growth.

Frequently Asked Questions

DoorDash reported a 31% increase in revenue to $8.6 billion, driven by a 25% rise in Marketplace GOV to $66.8 billion. The company also saw significant improvements in profitability, with Contribution Profit reaching $2.5 billion and Adjusted EBITDA growing to $1.2 billion. The net loss narrowed to $558 million in 2023, down from $1.4 billion in 2022.

Key risks include intense competition, potential changes in regulations impacting worker classification (Dashers), reliance on merchants and Dashers, cybersecurity threats, system failures, international operational complexities, and potential litigation related to various aspects of its business. The company also faces risks associated with economic downturns affecting consumer spending.

DoorDash completed a $750 million share repurchase program in 2023 and subsequently announced a new $1.1 billion repurchase authorization in February 2024. The company currently intends to retain future earnings for business growth and does not anticipate paying cash dividends in the foreseeable future.

The acquisition of Wolt, which was completed in May 2022, contributed to revenue and Marketplace GOV growth in 2023 due to its full-year inclusion in the company's reporting. While it increased operating expenses, the integration has helped expand DoorDash's international scale and market presence.