DASH Q2 2022 Earnings

Call Details

• Call Title: DoorDash, Inc. Q2 2022 Earnings Call
• Date: August 4, 2022 at 10:00 PM UTC
• Management Team:
  • Tony Xu (Co-founder, Chair, and Chief Executive Officer)
  • Prabir Adarkar (Chief Financial Officer)
  • Andy Hargreaves (Vice President, Finance and Investor Relations)

Call Summary

Financial Performance

• Company reported year-over-year GOV growth of 25% in Q2.
• The quarter produced both top-line and bottom-line outperformance versus internal expectations.
• Q2 EBITDA outperformance was driven materially by higher subtotals (higher item prices) which increased commission and service fee revenue.
• Cost of sales increased year-over-year with roughly half of the increase attributed to DashMart-related costs and roughly half attributed to higher insurance costs.
• Insurance reserves increased due to several large claims and insurance costs are expected to remain elevated in the near term.
• DoorDash added roughly 80,000 net new stores in the 12 months ending in Q2.
• DashPass subscription counts reached record highs and continue to contribute to order frequency gains.

Guidance

• Company confirmed it is not providing quantitative 2023 guidance today and will provide 2023 guidance when reporting Q4 results.
• The low end of the full-year EBITDA range was increased versus the prior expectation as a result of better-than-expected trends.
• Guidance does not break out Volt versus organic DoorDash contributions in the forward-looking guide, although earnings disclosures will split organic versus Volt when reported.
• Insurance cost increases and DashMart cost changes have already been incorporated into existing guidance assumptions.
• Q3 expectations incorporate normal summer seasonality and the company baked historical muted Q2-to-Q3 seasonality into the outlook.