DASH Q1 2023 Earnings

Call Details

• Call Title: DoorDash, Inc. Q1 2023 Earnings Call
• Date: May 4, 2023 at 9:00 PM UTC
• Management Team:
  • Andy Hargreaves (VP Finance)
  • Tony Xu (Co-founder, Chair, and CEO)
  • Ravi Inukonda (Chief Financial Officer)

Call Summary

Financial Performance

• The company reported a strong Q1 with GOV upside that contributed to EBITDA upside in the quarter.
• The business has delivered double-digit growth rates consistently for the last two years in a row according to commentary on the call.
• Order frequency was described as an all-time high for the platform during Q1.
• Retention in Q1 was higher than the prior quarter, supporting improved cohort economics.
• OPEX was flat for the last three quarters in a row, which contributed to margin expansion.
• Gross margin in 2023 was reported to be higher than Q4 levels due to logistics efficiency and lower credits and refunds.
• The advertising business is growing and is contributing to net revenue margin expansion.
• Sales and marketing expense stepped up in Q1 driven by higher dasher acquisition costs to support increased order volume.

Guidance

• The company stated they increased the GOV guide for the rest of the year and have confidence in that guide based on current input metrics.
• Management said Q2 GOV guidance was provided but did not disclose specific GOV numeric guidance on the call.
• The company said EBITDA guidance for the year incorporates continued investment levels and the growth of the ad business.
• Executives stated they expect to grow both users and order frequency and that expectation is baked into the guidance.
• No specific timetable or dollar target for positive free cash flow for new verticals was provided on the call.
• Non-GAAP measures will be discussed in shareholder letter and reconciliations are available on the Investor Relations website.