DoorDash (NASDAQ: DASH ) announced yet another grocery partnership last Thursday , this time with the largest US-based Asian supermarket chain, H Mart. I'm maintaining my buy as the new partnership further confirms my expectation of green shoots I'm a retired Wall Street PM specializing in TMT; my educational background is a bachelor's in Finance and Economics, and an MBA from Columbia, after which I directly began my career on Wall Street. Since kickstarting my career, I've spent over two decades in the ma ...

DoorDash (DASH) shares have rallied 26.4% year to date compared with the Zacks Computer & Technology sector's rise of 20.7%. DASH's robust stock price performance has been driven by its better-than-expected financial results and impressive growth profile. DoorDash reported second-quarter 2024 revenues of $2.63 billion, which increased 23.3% year over year. The upside was driven by strong performance in total orders and Marketplace Gross Order Value ("GOV"), alongside enhanced logistics efficiency and an inc ...

DoorDash Inc. NASDAQ: DASH is the largest food delivery platform in the United States, with over 550,000 restaurants and grocery stores in its network. Like Uber Technologies Inc. NYSE: UBER, DoorDash plays the role of the middleman connecting local restaurants with customers and Dashers (delivery drivers) to deliver the food. DoorDash has also expanded its deliveries to include groceries, clothing, make-up, mattresses, and more than two million products. DoorDash Today | --- | --- | |---------------------- ...

DoorDash's DashPass membership program now includes offers from Warner Bros. Discovery's Max streaming service. A DashPass Annual Plan membership in the United States now includes Max With Ads at no additional cost and an offer to upgrade to a Max Ad-Free subscription for a discounted rate of $10.99 per month, the companies said in a Tuesday (Aug. 13) press release. "Since launching DashPass six years ago, our goal has always been to deliver increasing value and savings to members," Prabir Adarkar, presiden ...

John M Lund Photography Inc/DigitalVision via Getty Images DoorDash, Inc. (NASDAQ:DASH) announced 2Q24 earnings last Thursday after the bell, confirming my positive outlook on the stock from my initiation article, "Hitting Bottom And Bound To Dash Higher." I think Dash is now better positioned to beat its Marketplace GOV guidance of $19.4 billion - $19.8 billion for next quarter, as I see momentum backed by expansion to international markets and its grocery offering. My positive sentiment back in May was ba ...

Investment Rating - The investment rating for DoorDash is not explicitly stated in the report, but it suggests a reasonable valuation with potential for profit improvement in the future [4]. Core Insights - DoorDash's Q2 performance exceeded expectations, with a 23% year-over-year increase in total revenue to $2.63 billion, and a 20% increase in gross order value (GOV) to $19.7 billion [2][7]. - The company expects a 16-18% year-over-year increase in GOV for Q3, driven by continuous cost optimization [2]. - The adjusted EBITDA for Q2 was $430 million, which is 9% higher than market expectations, indicating strong operational efficiency [2][12]. Summary by Sections Financial Performance - Q2 total revenue reached $2.63 billion, a 23% increase year-over-year and a 5% increase quarter-over-quarter, slightly above market expectations [2][7]. - The adjusted EBITDA was $430 million, corresponding to a profit margin of 16.3%, which is a 3 percentage point increase year-over-year [2][12]. - Contribution profit for Q2 was $830 million, reflecting a 33% year-over-year increase [3][12]. User Growth and Market Position - DoorDash's order volume in Q2 was 635 million, with a daily average of 7 million orders, marking a 19% year-over-year increase [2][11]. - The company captured 6.7% of the U.S. food and beverage market, up from 5.9% in Q2 2023, indicating improved market penetration [2][12]. Cost Management and Profitability - Administrative expenses increased by 45% year-over-year, influenced by property lease impairment losses and penalty provisions [2]. - The average revenue per order was $4.0, with an adjusted gross profit of $2.0 per order, showing continuous improvement in profitability metrics [3][12]. Future Guidance - For Q3, DoorDash anticipates GOV between $19.4 billion and $19.8 billion, with adjusted EBITDA expected to be between $470 million and $540 million [3][14]. - The market consensus expects a 20.5% year-over-year revenue growth for the full year 2024, with adjusted EBITDA projected at $1.7 billion [3][14].

DoorDash (DASH) reported a GAAP loss of 38 cents per share in second-quarter 2024, narrower than the yearago quarter's loss of 44 cents per share. The figure missed the Zacks Consensus Estimate of a loss of 10 cents. Revenues increased 23.3% year over year to $2.63 billion and surpassed the consensus mark by 3.7%. The upside was driven by strong performance in total orders and Marketplace GOV, alongside enhanced logistics efficiency and an increased contribution from advertising. Quarter in Details In the s ...

Kenneth Cheung For several quarters now, DoorDash (NASDAQ:DASH) has disappointed sorely after earnings. It's refreshing, that after posting incredible Q2 results, the delivery company experienced a welcome jolt upward, owing to incredibly strong order performance plus higher order contribution margins. Yet even after rallying more than 10% in after-hours trading following DoorDash's Q2 earnings print, the stock is still up only ~20% for the year: in line with the S&P 500, but underperforming many other tech ...

This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility: A DoorDash sign is posted on the door of a Dunkin' Donuts franchise, Feb. 27, 2023, in Methuen, Mass. DoorDash reports earnings on Thursday, Aug. 1, 2024. Credit: AP Photo/Charles Krupa, File DoorDash said Thursday that it set records for orders and revenue in the second quarter, growth that came despite slowing U.S. restaurant t ...

Financial Data and Key Metrics - The company reported strong demand on the consumer side, with no significant challenges observed despite industry-wide concerns about softening restaurant demand [6] - DashPass achieved an all-time high in subscriber base, indicating strong consumer engagement and retention [8][11] - The company continues to see robust growth in digital channels, with many multiples of overall growth in restaurant and retail sectors [6][7] - The company's order frequency and retention rates are as good or better than pandemic cohorts, reflecting strong product improvements [7][11] Business Line Data and Key Metrics - The restaurant business showed consistent growth in GOV (Gross Order Value) year-over-year, with faster growth in June compared to April [11] - The company is expanding its use cases beyond restaurants, with significant growth in non-restaurant categories such as grocery, convenience, and health and beauty [8][29] - The ad business and platform business are growing rapidly, contributing to improved revenue growth and take rates [14] Market Data and Key Metrics - The company is seeing strong retention and frequency in international markets, particularly in markets where Wolt operates, with better performance than in the U.S. [15][16] - The company is underpenetrated in many international markets, with significant room for growth in restaurant and retail categories [37] - The company is expanding its presence in grocery and convenience, with partnerships like the one with Chase enhancing its market position [28] Company Strategy and Industry Competition - The company is focused on improving product quality, affordability, and selection to maintain its leadership in the local commerce space [7][8] - The company is leveraging its logistics network to improve delivery accuracy and speed, which is critical for both restaurant and retail sectors [8] - The company is investing in new verticals and international markets, with a focus on scaling and improving efficiency [24][37] - The company is not seeing significant changes in competitive dynamics, with strong customer preference for its platform despite industry noise [63][64] Management Commentary on Operating Environment and Future Outlook - Management highlighted the early stages of digital transformation in the restaurant and retail industries, with significant growth potential in digital channels [6] - The company is focused on driving improvements in efficiency and reinvesting in growth opportunities, particularly in new verticals and international markets [14][24] - Management expressed confidence in the company's ability to maintain strong retention and frequency metrics, which are key indicators of long-term growth [7][11] Other Important Information - The company is working on affordability programs, such as DashPass, to attract and retain customers [8] - The company is expanding its selection in both restaurant and non-restaurant categories, with a focus on driving incremental GOV and improving conversion rates [31] - The company is seeing improvements in unit economics and gross profit across major lines of business, contributing to better EBITDA performance [33][34] Q&A Session Summary Question: Demand and New Customer Acquisition [5] - The company is seeing strong demand, with no significant softening in consumer behavior. New customer acquisition remains robust, with the company capturing more than half of new customers in the restaurant industry and about half in non-restaurant categories [9][10] Question: Take Rate and International Retention [13] - The take rate improvement is driven by growth in the ad and platform businesses, as well as efficiency improvements in Dasher costs. International markets show better retention due to strong fundamentals and lessons learned from Wolt [14][15][16] Question: International Market Performance and CPG Advertising [18] - The company is focused on creating the best service for customers, couriers, and merchants in international markets. CPG advertising is growing rapidly, with a focus on balancing consumer experience and advertiser returns [19][20][23] Question: Order Frequency and Merchant Investment [27] - Order frequency is increasing across both restaurant and new verticals, driven by better product offerings and delivery times. The company is investing in expanding merchant selection to drive incremental GOV [28][30][31] Question: EBITDA Flow-Through and Gross Margin [32] - EBITDA improvements are driven by higher GOV growth and better unit economics. The company expects continued margin improvements in restaurant, new verticals, and international businesses [33][34] Question: International Ambitions and Asset Mix [36] - The company sees significant growth potential in international markets, with a focus on expanding restaurant and retail selection. The company is well-positioned to achieve its ambitions with its current asset mix [37][38] Question: Restaurant Menu Inflation and Regulatory Impact [42] - Inflation has not significantly impacted the company's business, with AOV (Average Order Value) remaining flat year-over-year. Regulatory costs, particularly in New York and Seattle, are expected to decrease as the company improves efficiency [43][44][46] Question: Fee Reduction and Efficiency Improvements [48] - The company is focused on lowering fees and passing savings on to consumers, while improving logistics and selection to drive growth [49][50][51] Question: Fixed OpEx and CPG Ad Growth [54] - Fixed OpEx as a percentage of GOV is expected to remain stable for the rest of the year. The company is pacing CPG ad growth to ensure a healthy marketplace before monetizing it [55][57] Question: Ad Tech Stack and Competitive Dynamics [61] - The ad tech stack is evolving to support multiple categories and geographies. The company has not seen significant changes in competitive dynamics, with strong customer preference for its platform [62][63][64] Question: Merchant Expansion and Regulatory Impact [66] - The company is adding tens of thousands of new merchants across restaurant and non-restaurant categories. Regulatory impacts in New York and Seattle are expected to decrease as the company improves efficiency [67][69][70] Question: Price Parity and Ad Load Impact [73] - The company is working on price parity initiatives to improve affordability. Ad load has not significantly degraded app engagement or order frequency, as the company prioritizes consumer experience [74][75][76]