01—Abstract
Summary
Summary of the 10-K filed February 20, 2024. Cited figures are marked; the original filing is the authoritative source.
DoorDash, Inc. demonstrated significant top-line growth in its 2023 fiscal year, with revenue increasing by 31% year-over-year to $8.6 billiona.
This growth was primarily driven by a 25% increase in Marketplace Gross Order Value (GOV) to $66.8 billionb, 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.
02—Key points
Key Highlights
- Revenue grew 31% year-over-year to $8.6 billion, driven by a 25% increase in Marketplace GOV to $66.8 billion.
- Contribution Profit more than doubled to $2.5 billion, indicating improved operational efficiency and profitability.
- Adjusted EBITDA surged to $1.2 billion, a significant increase from $361 million in the prior year, demonstrating strong operating leverage.
- The company returned $750 million to shareholders through its share repurchase program during 2023, completing the authorized amount.
- DoorDash 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.
- The 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.
- International operations, notably through the full year inclusion of Wolt, contributed significantly to the overall growth.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2023filed February 20, 2024Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $8.63B$6.58B | +31.2% |
| R&D Expenses | $1.00B$829.00M | +21.0% |
| Operating Expenses | $9.21B$7.71B | +19.6% |
| Operating Income | -$579.00M-$1.12B | +48.5% |
| Net Income | -$558.00M-$1.36B | +59.1% |
| EPS (Basic) | $-1.42$-3.68 | +61.4% |
| EPS (Diluted) | $-1.42$-3.68 | +61.4% |
| Shares Outstanding (Basic) | 392.95M371.41M | +5.8% |
| Shares Outstanding (Diluted) | 392.95M371.41M | +5.8% |
05—Questions
Frequently Asked Questions
What was DoorDash's financial performance in 2023?
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.
What are the key risks facing DoorDash according to the 10-K?
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.
How is DoorDash managing its shareholder returns and capital allocation?
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.
What impact did the Wolt acquisition have on DoorDash's 2023 results?
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.
06—Continue