10-QPeriod: Q1 FY2021

DoorDash, Inc. Quarterly Report for Q1 Ended Mar 31, 2021

Filed May 14, 2021For Securities:DASH

Summary

DoorDash, Inc. (DASH) reported a significant increase in revenue and key business metrics for the first quarter of 2021 compared to the same period in 2020. Revenue surged by 198% year-over-year, driven by a substantial rise in Total Orders and Marketplace Gross Order Volume (GOV), both experiencing over 200% growth. This growth was partially attributed to pandemic-related shifts in consumer behavior, a trend the company anticipates will moderate. Despite the strong top-line growth, DoorDash continues to operate at a net loss, though the loss narrowed from $(129) million in Q1 2020 to $(110) million in Q1 2021. The company also showed improvement in its non-GAAP metrics, with Contribution Profit increasing significantly and Adjusted EBITDA turning positive, indicating a move towards operational profitability. Key expenses, such as sales and marketing and general and administrative, grew but at a slower pace than revenue, suggesting improving operating leverage. The company ended the quarter with a strong liquidity position, holding over $4 billion in cash, cash equivalents, and marketable securities.

Financial Highlights

46 data points
Beta

Revenue

$1.08B

Net Income

-$110.00M

-10.2% Net Margin

EPS (Diluted)

$-0.34

Total Assets

$5.90B

Cash & Equivalents

$4.01B

Free Cash Flow

$134.00M

Financial Statements
Beta
Revenue$1.08B
R&D Expenses$82.00M
Operating Expenses$1.18B
Operating Income-$99.00M
Interest Expense$12.00M
Net Income-$110.00M
EPS (Basic)$-0.34
EPS (Diluted)$-0.34
Shares Outstanding (Basic)327.81M
Shares Outstanding (Diluted)327.81M

Key Highlights

  • 1Revenue grew by 198% to $1.077 billion in Q1 2021 from $362 million in Q1 2020.
  • 2Total Orders increased by 219% to 329 million, and Marketplace GOV grew by 222% to $9.9 billion in Q1 2021.
  • 3Net Loss narrowed to $(110) million in Q1 2021, an improvement from $(129) million in Q1 2020.
  • 4Contribution Profit increased substantially to $209 million in Q1 2021, with Contribution Margin improving to 19% from 7% in Q1 2020.
  • 5Adjusted EBITDA turned positive at $43 million in Q1 2021, compared to negative $70 million in Q1 2020.
  • 6Sales and marketing expenses as a percentage of revenue decreased significantly to 31% from 42%.
  • 7The company ended Q1 2021 with $4.0 billion in cash and cash equivalents, and $467 million in marketable securities.

Frequently Asked Questions

DoorDash reported a significant increase in revenue, growing by 198% to $1.077 billion in the first quarter of 2021, compared to $362 million in the first quarter of 2020. This growth was primarily driven by a substantial increase in Total Orders and Marketplace Gross Order Volume.

While DoorDash's revenue saw strong growth, the company continued to incur a net loss. The net loss for the first quarter of 2021 was $110 million, an improvement from the $129 million net loss in the same period of 2020. The company's non-GAAP metric, Adjusted EBITDA, turned positive, reaching $43 million in Q1 2021, indicating progress towards profitability.

DoorDash ended the first quarter of 2021 with a robust liquidity position, holding $4.0 billion in cash and cash equivalents and an additional $467 million in marketable securities. Management believes this liquidity is sufficient to meet working capital and capital expenditure needs for at least the next 12 months.

The COVID-19 pandemic significantly accelerated DoorDash's growth in Q1 2021, leading to increased consumer demand for delivery services and higher order volumes. However, the company anticipates that this accelerated growth rate will decline as the COVID-19 vaccine becomes more widely available.

DoorDash demonstrated improved operating leverage in Q1 2021, with expenses like sales and marketing growing at a slower pace than revenue. Sales and marketing expenses as a percentage of revenue decreased from 42% in Q1 2020 to 31% in Q1 2021, suggesting increased efficiency in customer acquisition and brand awareness efforts.