Why did Net Revenue Margin decline from Q4 2024 even though it was flat Y/Y?

Management attributed the sequential decline from 13.5% to 13.1% mainly to affordability initiatives for consumers and a shift in order volume toward categories with lower Net Revenue Margins. Management expects Net Revenue Margin to increase in Q2 2025 on both a Y/Y and Q/Q basis.

How much is DoorDash paying for Deliveroo and when is the deal expected to close?

DoorDash made a formal offer of 180 pence per share in a recommended final all-cash transaction, equal to an equity value of £2.9 billion and an enterprise value of £2.4 billion. Both boards have approved it, and closing is expected in Q4 2025, subject to regulatory approvals, Deliveroo shareholder approval, and other customary conditions.

What does the SevenRooms acquisition add to DoorDash?

SevenRooms is a New York City-based hospitality technology software company. DoorDash is acquiring it for approximately $1.2 billion in cash to expand its Commerce Platform, giving merchants tools to grow in-store sales, strengthen customer relationships, and improve profitability. Closing is expected in the second half of 2025.

What is the company's guidance for the next quarter and the full year?

For Q2 2025, DoorDash expects Marketplace GOV of $23.3B to $23.7B and Adjusted EBITDA of $600M to $650M, and it expects Adjusted EBITDA as a percentage of Marketplace GOV to rise from Q2 to Q3. For 2025 it expects stock-based compensation of about $1.1B to $1.2B and depreciation and amortization of about $600M to $640M. Management notes that results could fall short if consumer spending weakens or if international and foreign currency risks materialize.

Has DoorDash been buying back stock, and how much cash does it have?

The board authorized up to $5.0 billion in share repurchases in February 2025, but as of May 5, 2025 no shares had been repurchased under that program, and management said it may or may not use it. At March 31, 2025, the company held $4.5 billion in cash and cash equivalents plus about $2.2 billion in marketable securities (short-term and long-term). Q1 operating cash flow was $635 million, and Free Cash Flow was $494 million.

DASH 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed May 6, 2025. Cited figures are marked; the original filing is the authoritative source.

DoorDash (NASDAQ: DASH) reported first quarter 2025 results on May 6, 2025, with new quarterly records for Total Orders (732 million, up 18% Y/Y), Marketplace GOV ($23.1 billion^a, up 20% Y/Y), revenue ($3.0 billion, up 21% Y/Y), and GAAP net income ($193 million, versus a $23 million loss a year earlier).

Adjusted EBITDA rose 59% Y/Y to an all-time high of $590 million^b, though as a share of Marketplace GOV it was 2.6%, down from 2.7% in Q4 2024. Free Cash Flow was $494 million for the quarter. Net Revenue Margin was flat Y/Y at 13.1% but fell from 13.5% in Q4, which management attributed to affordability initiatives and a mix shift toward lower-margin categories.

Management expects Net Revenue Margin to rise in Q2 2025 on both a Y/Y and Q/Q basis. The filing also discloses two acquisitions. DoorDash has made a recommended all-cash offer for Deliveroo at 180 pence per share, implying an equity value of £2.9 billion and an enterprise value of £2.4 billion, with closing expected in Q4 2025 subject to regulatory and Deliveroo shareholder approvals.

It has also agreed to acquire SevenRooms, a hospitality technology company, for approximately $1.2 billion^c in cash, with closing expected in the second half of 2025. Guidance for Q2 2025 calls for Marketplace GOV of $23.3 billion to $23.7 billion and Adjusted EBITDA of $600 million to $650 million.

The company also holds a $5.0 billion^d share repurchase authorization from February 2025 and had made no repurchases as of May 5, 2025. Investors should weigh the strong profitability trend against integration risk, international exposure, and the cash and dilution implications of two large deals.

02—Key points

Key Highlights

Record quarterly results: Total Orders of 732M (+18% Y/Y), Marketplace GOV of $23.1B (+20% Y/Y), and revenue of $3.0B (+21% Y/Y).
GAAP net income turned positive at $193M (diluted EPS $0.44), compared with a $23M loss in Q1 2024.
Adjusted EBITDA reached an all-time high of $590M (+59% Y/Y), though its margin on Marketplace GOV slipped to 2.6% from 2.7% in Q4 2024.
Net Revenue Margin held at 13.1%, flat Y/Y but down from 13.5% in Q4 2024 due to affordability initiatives and category mix; management expects an increase in Q2 2025.
Proposed acquisition of Deliveroo at 180 pence per share in cash (equity value £2.9B, enterprise value £2.4B), expected to close in Q4 2025.
Agreement to acquire SevenRooms for approximately $1.2B in cash, expected to close in H2 2025.
Q2 2025 guidance: Marketplace GOV of $23.3B–$23.7B and Adjusted EBITDA of $600M–$650M; $5.0B buyback authorization with no repurchases yet as of May 5, 2025.

03—Questions

Frequently Asked Questions

Why did Net Revenue Margin decline from Q4 2024 even though it was flat Y/Y?
Management attributed the sequential decline from 13.5% to 13.1% mainly to affordability initiatives for consumers and a shift in order volume toward categories with lower Net Revenue Margins. Management expects Net Revenue Margin to increase in Q2 2025 on both a Y/Y and Q/Q basis.
How much is DoorDash paying for Deliveroo and when is the deal expected to close?
DoorDash made a formal offer of 180 pence per share in a recommended final all-cash transaction, equal to an equity value of £2.9 billion and an enterprise value of £2.4 billion. Both boards have approved it, and closing is expected in Q4 2025, subject to regulatory approvals, Deliveroo shareholder approval, and other customary conditions.
What does the SevenRooms acquisition add to DoorDash?
SevenRooms is a New York City-based hospitality technology software company. DoorDash is acquiring it for approximately $1.2 billion in cash to expand its Commerce Platform, giving merchants tools to grow in-store sales, strengthen customer relationships, and improve profitability. Closing is expected in the second half of 2025.
What is the company's guidance for the next quarter and the full year?
For Q2 2025, DoorDash expects Marketplace GOV of $23.3B to $23.7B and Adjusted EBITDA of $600M to $650M, and it expects Adjusted EBITDA as a percentage of Marketplace GOV to rise from Q2 to Q3. For 2025 it expects stock-based compensation of about $1.1B to $1.2B and depreciation and amortization of about $600M to $640M. Management notes that results could fall short if consumer spending weakens or if international and foreign currency risks materialize.
Has DoorDash been buying back stock, and how much cash does it have?
The board authorized up to $5.0 billion in share repurchases in February 2025, but as of May 5, 2025 no shares had been repurchased under that program, and management said it may or may not use it. At March 31, 2025, the company held $4.5 billion in cash and cash equivalents plus about $2.2 billion in marketable securities (short-term and long-term). Q1 operating cash flow was $635 million, and Free Cash Flow was $494 million.

04—Continue

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