01—Abstract
Summary
Summary of the 8-K filed August 1, 2024. Cited figures are marked; the original filing is the authoritative source.
DoorDash reported Q2 2024 results with record Total Orders (635 million, up 19% Y/Y), Marketplace GOV ($19.7 billiona, up 20% Y/Y), and revenue ($2.6 billion, up 23% Y/Y).
Net Revenue Margin rose to 13.3% from 13.0% a year earlier, driven mainly by growing advertising contribution. Adjusted EBITDA reached an all-time high of $430 millionb, versus $279 million in Q2 2023, and free cash flow was $451 million. Profitability on a GAAP basis was weaker: the net loss including redeemable non-controlling interests was $158 million, held down by an $85 million litigation reserve and an $83 million office lease impairment.
Management said it expects legal expenses to decline meaningfully in Q3 2024. The Q3 2024 outlook calls for Marketplace GOV of $19.4 billion to $19.8 billionc and Adjusted EBITDA of $470 million to $540 million. Management also guided to 2024 stock-based compensation of $1.1 billion to $1.2 billion and depreciation and amortization of $560 million to $590 million.
Unit economics improved year over year in the U.S. restaurant, U.S. new verticals, and international segments, and gross profit as a percentage of Marketplace GOV rose to 6.1%. Investors should weigh the strong operating momentum against recurring legal and regulatory costs, a large share-count base, and the international risks flagged in the forward-looking statements. The company also repurchased $219 milliond of stock year to date through July, with about $881 million remaining under its authorization.
The filing was a Form 8-K furnishing the earnings press release (Exhibit 99.1) under Items 2.02 and 7.01. Those items are furnished rather than filed, so they are not subject to Section 18 liability unless expressly incorporated into a later filing.
02—Key points
Key Highlights
- Total Orders rose 19% Y/Y to 635 million and Marketplace GOV rose 20% Y/Y to $19.7 billion, both quarterly records.
- Revenue grew 23% Y/Y to $2.6 billion; Net Revenue Margin expanded to 13.3% from 13.0%, driven mainly by advertising.
- Adjusted EBITDA hit an all-time high of $430 million (2.2% of Marketplace GOV), up from $279 million a year earlier.
- GAAP net loss including non-controlling interests was $158 million, weighed down by an $85 million litigation reserve and an $83 million office lease impairment.
- Q3 2024 guidance: Marketplace GOV of $19.4–19.8 billion and Adjusted EBITDA of $470–540 million.
- Free cash flow was $451 million in Q2 2024, up from $311 million, and operating cash flow was $530 million.
- About $881 million remains under the $1.1 billion buyback authorization after $219 million of repurchases year to date through July.
03—Questions
Frequently Asked Questions
Why was the GAAP net loss in Q2 2024 larger than the Adjusted EBITDA would suggest?
Adjusted EBITDA excludes stock-based compensation (about $304 million in Q2), depreciation and amortization, legal and regulatory reserves, and impairments. The GAAP net loss of $158 million reflects these costs, including $85 million of litigation reserves and $83 million of office lease impairment in Q2 2024.
Will legal costs continue to weigh on results?
Management expects legal expenses to decline meaningfully in Q3 2024 compared with Q2 2024. However, these costs are unpredictable, so future reserves could still affect GAAP results.
What drove the improvement in Net Revenue Margin?
Net Revenue Margin rose to 13.3% from 13.0% a year earlier, mainly because advertising contributed a growing share of revenue. Gross profit as a percentage of Marketplace GOV also improved, from 5.8% to 6.1%.
What does the company expect for stock dilution and non-cash costs in 2024?
Management guided to 2024 stock-based compensation of $1.1–1.2 billion, RSU issuances of 6.0–7.0 million shares net of forfeitures, and depreciation and amortization of $560–590 million. Those figures assume stock prices near recent trading levels.
04—Continue