Summary
DoorDash, Inc. reported strong revenue growth in the third quarter of 2021, with revenue increasing by 45% year-over-year to $1.275 billion. This growth was driven by a 47% increase in Total Orders, reaching 347 million. The company also saw a 44% increase in Marketplace Gross Order Value (GOV) to $10.4 billion. Despite top-line growth, the company's net loss widened to $101 million for the quarter, compared to $43 million in the same period of the prior year. This widening loss was primarily attributed to increased operating expenses, particularly in sales and marketing, research and development, and general and administrative functions, partly due to substantial stock-based compensation expenses related to IPO-related equity awards. The company's cash position remains strong, with $2.9 billion in cash and cash equivalents and $1.3 billion in short-term marketable securities as of September 30, 2021, providing ample liquidity for at least the next 12 months. Key areas of increased spending included sales and marketing (up 54%) driven by increased advertising and brand marketing, and research and development (up 180%) driven by stock-based compensation. While Contribution Profit improved in absolute terms to $281 million, the Contribution Margin decreased to 22% from 24% in the prior year, due to higher first-party product costs and increased Dasher acquisition costs. The company continues to navigate significant legal and regulatory challenges, particularly concerning Dasher classification, which could materially impact its business model and financial results if reclassified as employees. Despite these challenges and continued investment in growth, DoorDash is focused on long-term value creation.
Financial Highlights
46 data points| Revenue | $1.27B |
| R&D Expenses | $115.00M |
| Operating Expenses | $1.38B |
| Operating Income | -$100.00M |
| Interest Expense | $0 |
| Net Income | -$101.00M |
| EPS (Basic) | $-0.30 |
| EPS (Diluted) | $-0.30 |
| Shares Outstanding (Basic) | 340.17M |
| Shares Outstanding (Diluted) | 340.17M |
Key Highlights
- 1Revenue increased by 45% year-over-year to $1.275 billion in Q3 2021.
- 2Total Orders grew by 47% to 347 million in Q3 2021.
- 3Marketplace GOV increased by 44% to $10.4 billion in Q3 2021.
- 4Net loss widened to $101 million in Q3 2021, compared to $43 million in Q3 2020, driven by increased operating expenses and stock-based compensation.
- 5Contribution Profit increased to $281 million, but Contribution Margin decreased to 22% due to higher acquisition costs and product costs.
- 6The company ended the quarter with a strong liquidity position, holding $2.9 billion in cash and cash equivalents and $1.3 billion in short-term marketable securities.
- 7Significant investments were made in R&D and Sales & Marketing, with R&D expenses nearly tripling year-over-year, largely due to stock-based compensation.