Overview

DoorDash, Inc. is a leading provider of local commerce platforms, operating in over 30 countries globally. The company’s mission is to grow and empower local economies by reducing friction in local commerce and helping merchants better connect with consumers in their communities.

DoorDash’s primary offerings include the DoorDash Marketplace, the Wolt Marketplace, and its Commerce Platform. The Marketplaces provide an integrated suite of services to help merchants establish an online presence, connect with consumers, and solve critical business challenges. The Commerce Platform offers white-label delivery fulfillment services and other tools to help merchants grow their own online channels.

Financial and Operational Highlights

DoorDash reported strong financial and operational performance in 2024, with key metrics showing significant growth:

• Total Orders: Grew 20% to 2.6 billion in 2024, driven by growth in consumers and increased consumer engagement.

• Marketplace GOV: Grew 20% to $80.2 billion in 2024, also driven by the increase in Total Orders.

• Net Revenue Margin: Increased to 13.4% in 2024 from 12.9% in 2023, primarily due to higher advertising revenue.

• Contribution Profit: Increased 40% to $3.5 billion in 2024, driven by revenue growth partially offset by higher costs.

• Adjusted EBITDA: Increased 60% to $1.9 billion in 2024, driven by the growth in Contribution Profit.

• Free Cash Flow: Increased 34% to $1.8 billion in 2024, reflecting the growth in operating cash flow.

These strong financial results demonstrate DoorDash’s ability to scale its business and drive profitability as it continues to expand its platform and services.

Results of Operations

DoorDash’s revenue grew 24% in 2024 to $10.7 billion, driven primarily by the 20% increase in Marketplace GOV. The company’s cost of revenue, excluding depreciation and amortization, increased 21% to $5.5 billion, reflecting the growth in order volume and platform costs.

Sales and marketing expenses increased 9% to $2.0 billion, as the company continued to invest in advertising and personnel to support customer acquisition. Research and development expenses grew 16% to $1.2 billion, reflecting increased investment in the company’s technology platform and product development.

General and administrative expenses increased 18% to $1.5 billion, primarily due to higher legal, tax, and regulatory costs, as well as office lease impairment expenses.

Overall, DoorDash reported a net income of $123 million in 2024, compared to a net loss of $558 million in 2023, reflecting the company’s improved operating leverage and profitability.

Non-GAAP Financial Measures

DoorDash uses several non-GAAP financial measures to provide additional insight into its performance and operations:

• Adjusted Cost of Revenue: Excludes stock-based compensation, allocated overhead, and other one-time items to better reflect the core costs of generating revenue.

• Contribution Profit: Gross profit less sales and marketing expense, plus certain adjustments, to measure the economic impact of orders fulfilled through the platform.

• Adjusted EBITDA: Net income (loss) adjusted for various non-cash and non-recurring items to assess the company’s operating performance and leverage.

• Free Cash Flow: Cash flow from operations less capital expenditures, providing a measure of the company’s ability to generate cash.

These non-GAAP metrics help to provide a more comprehensive understanding of DoorDash’s financial health and operational efficiency.

Liquidity and Capital Resources

As of December 31, 2024, DoorDash had $6.2 billion in cash, cash equivalents, and marketable securities, providing ample liquidity to fund its operations and strategic initiatives. The company also has a $800 million revolving credit facility, with $115 million in letters of credit outstanding as of the end of 2024.

DoorDash has historically funded its operations through a combination of cash flow from operations and the issuance of equity. The company has generated significant operating losses, but management believes the existing cash and credit facility will be sufficient to meet its working capital and capital expenditure needs for the foreseeable future.

In 2024, DoorDash announced a $1.1 billion share repurchase program, of which $876 million remained available as of the end of the year. In early 2025, the company authorized an additional $5.0 billion share repurchase program, demonstrating its confidence in the business and commitment to returning capital to shareholders.

Risks and Outlook

DoorDash faces several key risks and uncertainties that could impact its future performance:

• Competition: The company operates in a highly competitive industry, with rivals such as Uber Eats, Grubhub, and Instacart vying for merchants, consumers, and delivery providers.

• Regulatory Environment: Changes in laws and regulations around worker classification, labor practices, and other areas could increase DoorDash’s costs and operational complexity.

• Macroeconomic Conditions: A potential economic downturn or changes in consumer spending patterns could affect demand for the company’s services.

• Technology and Innovation: Failure to keep pace with technological advancements or develop new features and services could erode DoorDash’s competitive position.

Despite these risks, the company’s strong financial performance, growing customer base, and continued investment in its platform position it well for future growth. DoorDash’s focus on empowering local economies and providing value-added services to merchants and consumers should continue to drive demand for its offerings.

Overall, DoorDash’s 2024 results demonstrate the company’s ability to scale its business and improve profitability, even in the face of a challenging macroeconomic environment. The company’s investments in technology, marketing, and operational efficiency are paying off, and its strong liquidity position provides the flexibility to pursue further growth opportunities. As DoorDash continues to innovate and expand its platform, it is well-positioned to maintain its leadership in the local commerce space.