DoorDash Beats on Revenue, Misses on EPS

DoorDash (DASH 0.24%), a leading food delivery and logistics company, released its fourth-quarter earnings on Feb. 11. The company reported strong revenue growth to $2.87 billion, about 1% higher than analysts’ estimates of $2.84 billion. Despite this, earnings per share (EPS) of $0.33 came in slightly below the anticipated $0.34. Overall, the quarter demonstrated robust development across key metrics, including marketplace order volume.

Source: Analysts’ estimates for the quarter provided by FactSet.

Overview of DoorDash’s Business

DoorDash operates one of the largest online food delivery platforms in the U.S. It connects local businesses and customers, facilitating orders through its marketplace. The company’s recent areas of focus have included expanding its international footprint and diversifying into non-food categories. Key factors in its success will be its ability to grow its marketplace, improve delivery partner satisfaction, and enhance its relationships with merchants through innovative services.

The company has pursued several strategic initiatives to maintain its competitive edge. It also invests in enhancing user experience and increasing the number of monthly active users, which now exceeds 42 million.

Quarter Highlights

DoorDash’s revenue increase of 24.8% year-over-year to $2.87 billion was driven by a 19.3% rise in total orders to 685 million, underpinned by a 20.6% increase in marketplace gross order value to $21.28 billion.

The company’s gross profit rose by 33.7% year over year to $1.37 billion, with gross profit margins improving to 6.4% from the prior year’s 5.8%. It achieved its first full year of positive net income, reporting $141 million versus a $154 million loss in the prior-year period. Adjusted EBITDA reached a record high of $566 million, up from $363 million, signaling significant improvements in operational efficiency.

Noteworthy strategic advancements include expanding merchant selection by over 25% and reinforcing its U.S. and international marketplace presence. In terms of services, DoorDash has been expanding its grocery offerings and enhancing advertising capabilities. It signed key partnerships, including collaborations with major grocers like Wegmans, to deepen its market integration.

Forward Outlook

For the first quarter of 2025, DoorDash forecasts marketplace gross order value between $22.6 billion and $23.0 billion, with adjusted EBITDA of $550 million to $600 million. This guidance shows optimism about continued growth momentum.

The focus for upcoming quarters will be on leveraging technology for platform enhancements, and further strengthening merchant and consumer relationships. Investors should monitor developments in international expansion and advertising revenue growth, which will be key areas for prospective growth and profitability.