DoorDash (DASH +4%) is experiencing a significant boost following its Q4 report. The food delivery giant reported a 24.8% year-over-year increase in revenue, reaching $2.87 billion, slightly surpassing expectations. Total orders rose 19% year-over-year to 685 million, and Q4 Marketplace Gross Order Value (GOV) increased 21% year-over-year to $21.3 billion, exceeding prior guidance of $20.6-21.0 billion.
Key highlights include:
- DoorDash focuses on adjusted EBITDA as a profitability metric. Adjusted EBITDA grew 56% year-over-year to $566 million, aligning with the higher end of its $525-575 million guidance. The adjusted EBITDA as a percentage of Marketplace GOV increased to 2.7% from 2.1% a year ago.
- Order growth, which had been declining in recent quarters, saw a positive trend with a 19% year-over-year increase, surprising investors. The growth is attributed to signing new restaurant partners and expanding into new verticals like grocery and retail, which are growing faster than the restaurant segment.
- Monthly active users (MAUs) reached a record high of over 42 million in December 2024, up from over 37 million in December 2023. DashPass and Wolt+ memberships are also increasing, with over 25% of MAUs ordering from new verticals, up from over 20% a year ago. Order frequency remains at an all-time high.
- Despite some analyst disappointment with the Q1 guidance, DoorDash attributed this to an extra day in Q1 last year and foreign exchange headwinds.
- Reflecting on 2024, DoorDash's business is significantly larger compared to 2019, with GOV over nine times larger, revenue twelve times larger, and $2.4 billion more in free cash flow, maintaining growth post-pandemic.
Investors are pleased with DoorDash's performance in 2024, despite macroeconomic challenges. Although the stock initially dropped, the focus shifted to impressive metrics like order growth and record-high MAUs and order frequency.
