01—Abstract
Summary
Summary of the 10-Q filed May 1, 2024. Cited figures are marked; the original filing is the authoritative source.
DoorDash, Inc. reported a significant improvement in its financial performance for the first quarter of 2024, narrowing its net loss to $23 milliona from $161 million in the same period last year.
Revenue saw a healthy increase of 23% year-over-year, reaching $2.51 billionb, driven by a 21% rise in Marketplace Gross Order Value (GOV) to $19.2 billion. The company also demonstrated strong operational leverage, with Contribution Profit more than doubling to $751 million and Adjusted EBITDA increasing to $371 million. Key to this performance was a substantial increase in cash flow from operations, which rose to $553 million, contributing to a robust free cash flow of $487 million.
The company ended the quarter with a strong liquidity position, holding $5.1 billionc in cash, cash equivalents, and marketable securities. Despite ongoing investments in growth and technology, DoorDash is effectively managing its costs, with sales and marketing expenses growing at a much slower pace than revenue. The company also announced a $1.1 billion share repurchase program, signaling confidence in its financial health and commitment to shareholder returns.
02—Key points
Key Highlights
- Revenue increased by 23% to $2.51 billion in Q1 2024.
- Marketplace GOV grew by 21% to $19.2 billion in Q1 2024.
- Net loss improved significantly, narrowing to $23 million from $161 million in Q1 2023.
- Contribution Profit more than doubled to $751 million.
- Adjusted EBITDA increased to $371 million from $204 million in Q1 2023.
- Free Cash Flow increased to $487 million.
- The company ended Q1 2024 with $5.1 billion in cash, cash equivalents, and marketable securities.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed May 1, 2024Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $2.51B$2.04B | +23.5% |
| R&D Expenses | $279.00M$231.00M | +20.8% |
| Operating Expenses | $2.57B$2.21B | +16.7% |
| Operating Income | -$61.00M-$171.00M | +64.3% |
| Net Income | -$23.00M-$161.00M | +85.7% |
| EPS (Basic) | $-0.06$-0.41 | +85.4% |
| EPS (Diluted) | $-0.06$-0.41 | +85.4% |
| Shares Outstanding (Basic) | 405.48M390.40M | +3.9% |
| Shares Outstanding (Diluted) | 405.48M390.40M | +3.9% |
05—Questions
Frequently Asked Questions
How did DoorDash's revenue perform in the first quarter of 2024?
DoorDash reported a 23% increase in revenue for the first quarter of 2024, reaching $2.51 billion, up from $2.04 billion in the same quarter of 2023. This growth was primarily driven by a 21% increase in Marketplace Gross Order Value (GOV) and an increasing contribution from advertising revenue.
What was DoorDash's net loss in the first quarter of 2024, and how does it compare to the previous year?
DoorDash significantly reduced its net loss in the first quarter of 2024 to $23 million, a substantial improvement from a net loss of $161 million reported in the first quarter of 2023. This narrowing of the loss reflects improved operational efficiency and cost management.
How did DoorDash's cash flow and liquidity position change in Q1 2024?
DoorDash demonstrated strong cash flow generation, with cash provided by operating activities increasing to $553 million, leading to a Free Cash Flow of $487 million in the first quarter of 2024. The company maintained a robust liquidity position, ending the quarter with $5.1 billion in cash, cash equivalents, and marketable securities.
What is the significance of the $1.1 billion share repurchase program announced by DoorDash?
The authorization of a $1.1 billion share repurchase program signals the company's confidence in its financial stability and its commitment to returning value to shareholders. It indicates that management believes the company's stock may be undervalued, and repurchases can enhance shareholder value by reducing the number of outstanding shares.
06—Continue