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Dec 31, 2023

DoorDash Q4 2023 Earnings Report

DoorDash's Q4 2023 financial results were released, showcasing growth in total orders, marketplace GOV, and revenue, alongside a reduced net loss and increased Adjusted EBITDA.

Key Takeaways

DoorDash reported a 23% year-over-year increase in total orders, reaching 574 million, and a 22% increase in Marketplace GOV, totaling $17.6 billion. Revenue grew by 27% year-over-year to $2.3 billion. The company's GAAP net loss was reduced to $156 million, and Adjusted EBITDA increased to $363 million.

Total Orders increased 23% Y/Y to 574 million.

Marketplace GOV increased 22% Y/Y to $17.6 billion.

Revenue increased 27% Y/Y to $2.3 billion.

GAAP net loss was $156 million, an improvement from $642 million in Q4 2022.

Total Revenue
$2.3B
Previous year: $1.82B
+26.7%
EPS
-$0.39
Previous year: -$0.63
-38.1%
Total Orders
574M
Previous year: 467M
+22.9%
Marketplace GOV
$17.6B
Previous year: $14.4B
+22.5%
Gross Profit
$1.03B
Previous year: $762M
+34.6%
Cash and Equivalents
$2.66B
Previous year: $1.98B
+34.3%
Free Cash Flow
$398M
Previous year: -$22M
-1909.1%
Total Assets
$10.8B
Previous year: $9.79B
+10.7%

DoorDash

DoorDash

Forward Guidance

DoorDash anticipates Marketplace GOV to be in the range of $18.5 billion to $18.9 billion and Adjusted EBITDA to be between $320 million and $380 million for Q1 2024. For the full year 2024, Marketplace GOV is expected to be $74.0 billion to $78.0 billion, with Adjusted EBITDA between $1.5 billion and $1.9 billion.

Positive Outlook

  • Adjusted EBITDA as a percentage of Marketplace GOV to be similar in Q1 and Q2.
  • Adjusted EBITDA as a percentage of Marketplace GOV to increase from Q2 to Q3, primarily due to increases in Net Revenue Margin and leverage on sales and marketing expenses.
  • 2024 stock-based compensation to be in a range of $1.1 billion to $1.2 billion.
  • 2024 RSU issuances of 8.5 million to 9.5 million, net of expected forfeitures.
  • 2024 depreciation and amortization expense of approximately $560 million to $590 million.

Challenges Ahead

  • Consumer spending in any of our geographies could deteriorate relative to our outlook, which could drive results below our expectations.
  • Increasing international exposure heightens risks associated with operating in foreign markets, including geopolitical and currency risks.
  • Changes in the international operating environment could negatively impact results versus our current outlook.
  • Uncertainty regarding reconciling items such as taxes and other items.
  • Material changes to reconciling items could have a significant effect on future GAAP results.