DoorDash, Inc. (DASH) Bundle
A Brief History of DoorDash, Inc.
DoorDash, Inc. was founded in June 2013 by Tony Xu, Stanley Tang, Andy Fang, and Evan Moore. Initially launched as a food delivery service, DoorDash aimed to provide a platform connecting consumers with local restaurants.
Growth and Expansion
By 2015, DoorDash expanded its services beyond just food delivery to include logistics solutions for businesses. The company had raised over $120 million in funding by this time, allowing it to scale operations across several U.S. cities.
Initial Public Offering (IPO)
DoorDash went public on December 9, 2020, with an initial offering price of $102 per share. The IPO raised approximately $3.37 billion, giving the company a valuation of nearly $39 billion at the time of its debut on the New York Stock Exchange (NYSE).
Financial Performance and Key Metrics (2024)
As of September 30, 2024, DoorDash reported significant growth in revenue and operational metrics:
| Metric | Q3 2023 | Q3 2024 | Change (%) |
|---|---|---|---|
| Revenue | $2,164 million | $2,706 million | 25% |
| Net Income (Loss) | ($73) million | $162 million | N/A |
| Adjusted EBITDA | $344 million | $533 million | 55% |
| Total Orders | 543 million | 643 million | 18% |
| Marketplace Gross Order Value (GOV) | $16.75 billion | $20.00 billion | 19% |
Market Position and Competitive Landscape
As of 2024, DoorDash remains a leader in the food delivery market, competing with companies like Uber Eats and Grubhub. The company has diversified its offerings, including the launch of DashPass, a subscription service that provides customers with zero delivery fees on eligible orders.
Recent Developments
In February 2024, DoorDash announced a share repurchase program of up to $1.1 billion, signaling confidence in its financial health. As of September 30, 2024, the company had approximately $876 million remaining under this authorization.
Financial Health
As of September 30, 2024, DoorDash reported cash, cash equivalents, and marketable securities totaling $5.8 billion, which includes:
| Type | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $3,664 |
| Short-term Marketable Securities | $1,300 |
| Long-term Marketable Securities | $795 |
Despite a history of operating losses, the company reported a significant reduction in net loss, from $409 million in the first nine months of 2023 to $22 million in the same period of 2024.
Conclusion of Financials
DoorDash's financial trajectory indicates robust growth potential, driven by increased consumer engagement and expanding service offerings. The company's strategic initiatives, including its recent repurchase program, reflect a proactive approach to enhancing shareholder value.
A Who Owns DoorDash, Inc. (DASH)
Major Shareholders
As of 2024, DoorDash, Inc. has a diverse ownership structure that includes institutional investors, individual shareholders, and company executives. The following table highlights the major shareholders and their respective ownership stakes:
| Shareholder Type | Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 8.1% |
| Institutional Investor | BlackRock, Inc. | 7.5% |
| Institutional Investor | Fidelity Management & Research Company | 6.3% |
| Executive | Tony Xu (CEO) | 3.2% |
| Executive | Andy Fang (Co-founder) | 2.5% |
| Executive | Stan Chia (COO) | 1.8% |
| Other | Public Float | 70.6% |
Stock Performance
DoorDash's stock performance has seen significant fluctuations since its IPO. As of September 30, 2024, the stock price of DoorDash (DASH) was approximately $125.45 per share, reflecting a market capitalization of around $53 billion. The stock has experienced a year-to-date growth of approximately 30% from the beginning of 2024.
Financial Metrics
As of Q3 2024, DoorDash reported the following financial metrics:
| Metric | Q3 2023 | Q3 2024 |
|---|---|---|
| Revenue | $2.164 billion | $2.706 billion |
| Net Income (Loss) | $(73) million | $162 million |
| Adjusted EBITDA | $344 million | $533 million |
| Free Cash Flow | $398 million | $444 million |
| Marketplace Gross Order Value (GOV) | $16.8 billion | $20.0 billion |
Executive Compensation
In 2024, DoorDash's executive compensation packages remained competitive to attract and retain talent. The following table summarizes the total compensation for key executives:
| Executive | Position | Total Compensation (2024) |
|---|---|---|
| Tony Xu | CEO | $10.5 million |
| Andy Fang | Co-founder | $8.3 million |
| Stan Chia | COO | $7.1 million |
Institutional Ownership
Institutional ownership plays a crucial role in the stock's performance and stability. As of 2024, approximately 75% of DoorDash's shares were held by institutional investors, reflecting a strong interest from large financial entities.
Conclusion on Ownership Structure
DoorDash's ownership structure as of 2024 illustrates a well-rounded mix of institutional investors, executive stakeholders, and public shareholders. This diverse ownership base supports the company's strategic initiatives and contributes to its market performance.
DoorDash, Inc. (DASH) Mission Statement
Company Overview
DoorDash, Inc. operates a local commerce platform that connects merchants, consumers, and Dashers. The company emphasizes its commitment to enhancing local businesses and providing consumers with the convenience of on-demand delivery services.
Mission Statement
DoorDash's mission is to "grow and empower local economies." This reflects its focus on supporting local businesses through its marketplace and delivery services, while also aiming to provide consumers with easy access to a variety of products and services.
Financial Performance
As of the third quarter of 2024, DoorDash reported significant financial metrics that illustrate its operational scale and growth trajectory:
| Metric | Q3 2023 | Q3 2024 | Year-Over-Year Change |
|---|---|---|---|
| Revenue | $2,164 million | $2,706 million | 25% |
| Marketplace GOV | $16,751 million | $20,002 million | 19% |
| Net Revenue Margin | 12.9% | 13.5% | 0.6% |
| GAAP Gross Profit | $962 million | $1,283 million | 33% |
| Contribution Profit | $640 million | $930 million | 45% |
| Adjusted EBITDA | $344 million | $533 million | 55% |
Operational Metrics
In addition to financial performance, DoorDash's operational metrics reflect its growth in user engagement and delivery capabilities:
| Operational Metric | Q3 2023 | Q3 2024 | Year-Over-Year Change |
|---|---|---|---|
| Total Orders | 543 million | 643 million | 18% |
| Average Order Value | $30.00 | $31.00 | 3.33% |
Market Presence
DoorDash operates in over 30 countries, providing a suite of services that help merchants establish an online presence and fulfill orders efficiently. The company continues to expand its marketplace offerings, including subscription services like DashPass, which enhances customer loyalty and repeat business.
Future Outlook
DoorDash plans to continue investing in technology and partnerships to drive growth and enhance service delivery. The company remains focused on its mission to empower local economies and provide exceptional service to both merchants and consumers.
How DoorDash, Inc. (DASH) Works
Business Model
DoorDash, Inc. operates a multi-faceted business model primarily centered around food delivery services. The company generates revenue through:
- Marketplace commissions from partner merchants based on the total dollar value of orders.
- Consumer fees for delivery services.
- Membership revenues from DashPass and Wolt+.
- Advertising products integrated within its platforms.
- Commerce Platform services, including Drive and Online Ordering.
Financial Performance
In the third quarter of 2024, DoorDash reported substantial growth in its financial metrics:
| Metric | Q3 2023 | Q3 2024 | % Change |
|---|---|---|---|
| Revenue | $2,164 million | $2,706 million | 25% |
| Cost of Revenue | $1,156 million | $1,374 million | 19% |
| Gross Profit | $962 million | $1,283 million | 33% |
| Net Income (Loss) | $(73) million | $162 million | 321% |
| Adjusted EBITDA | $344 million | $533 million | 55% |
Key Operational Metrics
DoorDash tracks several operational metrics to assess its performance:
| Metric | Q3 2023 | Q3 2024 | % Change |
|---|---|---|---|
| Total Orders | 543 million | 643 million | 18% |
| Marketplace Gross Order Value (GOV) | $16.75 billion | $20.00 billion | 19% |
| Net Revenue Margin | 12.9% | 13.5% | 4.7% |
| Contribution Profit | $640 million | $930 million | 45% |
Geographic Revenue Breakdown
DoorDash's revenue is primarily generated from the United States, with increasing contributions from international markets:
| Region | Q3 2023 Revenue | Q3 2024 Revenue |
|---|---|---|
| United States | $1,953 million | $2,361 million |
| International | $211 million | $345 million |
Cost Structure
The cost of revenue consists of several components, including:
- Order management costs.
- Platform costs.
- Personnel costs.
For the third quarter of 2024, the costs were as follows:
| Cost Component | Q3 2023 | Q3 2024 |
|---|---|---|
| Order Management Costs | $1,156 million | $1,374 million |
| Sales and Marketing | $449 million | $483 million |
| Research and Development | $250 million | $289 million |
| General and Administrative | $289 million | $315 million |
Stock Performance
As of September 30, 2024, DoorDash had the following stock-related metrics:
| Metric | Value |
|---|---|
| Weighted-Average Diluted Shares Outstanding | 428 million |
| Basic Net Income (Loss) per Share | $0.39 |
| Diluted Net Income (Loss) per Share | $0.38 |
How DoorDash, Inc. (DASH) Makes Money
Revenue Streams
DoorDash generates revenue primarily through its Marketplaces and Commerce Platform. The company earns money by charging commissions to partner merchants based on the total dollar value of goods ordered, as well as fees from consumers for delivery services.
Marketplace Revenue
Marketplace revenue includes the following components:
- Commissions from partner merchants.
- Fees charged to consumers for using the platform.
- Membership fees from DashPass and Wolt+.
- Advertising revenue recognized as part of Marketplace revenue.
| Metrics | Q3 2023 | Q3 2024 | % Change |
|---|---|---|---|
| Revenue | $2,164 million | $2,706 million | 25% |
| Marketplace GOV | $16,751 million | $20,002 million | 19% |
| Net Revenue Margin | 12.9% | 13.5% | 4.7% | GAAP Gross Profit | $962 million | $1,283 million | 33.4% |
| Contribution Profit | $640 million | $930 million | 45.3% |
Cost Structure
DoorDash's cost of revenue primarily consists of:
- Order management costs, including payment processing and insurance expenses.
- Platform costs associated with onboarding merchants and Dashers.
- Personnel costs related to local operations and support.
| Cost Metrics | Q3 2023 | Q3 2024 | % Change |
|---|---|---|---|
| Cost of Revenue (exclusive of depreciation) | $1,156 million | $1,374 million | 19% |
| Sales and Marketing Expenses | $449 million | $483 million | 8% |
| Research and Development Expenses | $250 million | $289 million | 15.6% |
| General and Administrative Expenses | $289 million | $315 million | 9% |
Total Orders and User Engagement
In Q3 2024, DoorDash reported:
- Total Orders: 643 million (up 18% year-over-year).
- Average consumer engagement growth contributing to total order increase.
Adjusted EBITDA and Free Cash Flow
DoorDash's performance metrics include Adjusted EBITDA, which is calculated as follows:
| Metrics | Q3 2023 | Q3 2024 |
|---|---|---|
| Adjusted EBITDA | $344 million | $533 million |
| Free Cash Flow | $398 million | $444 million |
Net cash provided by operating activities for the nine months ended September 30, 2024, was $1,614 million, compared to $1,188 million in the same period of 2023.
Geographic Revenue Distribution
DoorDash's revenue by geographic area is detailed as follows:
| Geographic Area | Q3 2023 | Q3 2024 |
|---|---|---|
| United States | $1,953 million | $2,361 million |
| International | $211 million | $345 million |
Overall, DoorDash's financial performance reflects significant growth across various segments, driven by increased consumer engagement and expanding revenue streams.
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Article updated on 8 Nov 2024
Resources:
- DoorDash, Inc. (DASH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of DoorDash, Inc. (DASH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View DoorDash, Inc. (DASH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.