DASH Q2 2023 Earnings

Call Details

• Call Title: DoorDash, Inc. Q2 2023 Earnings Call
• Date: August 2, 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

• Company stated that Q2 growth accelerated compared to Q1.
• Orders accelerated from Q1 to Q2 while GOV did not accelerate, as stated by the CFO.
• The U.S. restaurants business previously generated an annualized $2.4B in contribution profit in Q3 of last year, and the company stated that this has grown substantially since then.
• DashPass had a record quarter with subscribers growing both quarterly and year over year.
• Order frequency was described as at all-time highs for the business.
• Company stated that core U.S. restaurant unit economics improved during the quarter.
• Both new verticals and international were described as improving in unit economics year on year.
• Dasher acquisition cost in Q2 was lower than expected due to product improvements and seasonality, according to the CFO.

Guidance

• CFO said the Q3 GOV guide reflects normal seasonality versus Q2 and not a structural slowdown.
• CFO raised GOV guidance for the rest of the year based on confidence in consumer spending and cohort stability.
• CFO stated that Q4 GOV is expected to be higher than Q3, which would contribute to incremental EBITDA flow-through.
• Company reiterated discipline that it will reinvest in the business when volume growth and unit economics are both progressing.
• CFO warned that Dasher acquisition efficiencies from seasonality in Q2 should not be expected to fully repeat in the back half.
• CFO characterized guidance commentary as contingent on continued product-driven efficiency and selective reinvestment opportunities.