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Mar 31, 2021

DoorDash Q1 2021 Earnings Report

DoorDash's Q1 2021 performance showcased substantial growth, driven by increased orders, revenue, and marketplace GOV, despite facing challenges related to Dasher supply and price controls.

Key Takeaways

DoorDash's Q1 2021 earnings revealed significant year-over-year growth in revenue, total orders, and marketplace GOV. The company experienced a GAAP net loss but achieved positive adjusted EBITDA. While facing challenges related to Dasher supply and price controls, DoorDash saw strong consumer retention and growth in non-restaurant categories.

Revenue increased by 198% year-over-year to $1.1 billion, driven by a 219% increase in total orders to 329 million and a 222% increase in Marketplace GOV to $9.9 billion.

GAAP gross profit grew by 233% year-over-year to $493 million.

The company generated Adjusted EBITDA of $43 million, a significant improvement compared to the Adjusted EBITDA loss of $70 million in Q1 2020.

Orders from non-restaurant categories grew by over 40% quarter-over-quarter, representing over 7% of total orders.

Total Revenue
$1.08B
EPS
-$0.34
Total Orders
329M
Marketplace GOV
$9.9B
Gross Profit
$493M
Cash and Equivalents
$4.01B
Free Cash Flow
$112M
Total Assets
$5.9B

DoorDash

DoorDash

Forward Guidance

DoorDash expects Q2 Marketplace GOV to be in the range of $9.4 billion to $9.9 billion, with Adjusted EBITDA between $0 million and $100 million. For the full year 2021, Marketplace GOV is projected to be between $35.0 billion and $38.0 billion, with Adjusted EBITDA between $0 million and $300 million.

Positive Outlook

  • Successful rollout of COVID-19 vaccines
  • Associated increase in in-store dining rates
  • Sequential increase in Take Rate in Q2
  • Strong growth in Drive orders
  • Anticipated increase in consumer demand

Challenges Ahead

  • Seasonal decline in order rates associated with the warmer summer months
  • Potential deviation of consumer behavior from expectations due to uncertainty
  • Impact of stimulus wearing off
  • Price controls negatively impacting revenue
  • Potential negative impact on new consumer growth, order rates, and average order value due to market reopenings