DASH Q3 2022 Earnings

Call Details

• Call Title: DoorDash, Inc. Q3 2022 Earnings Call
• Date: November 3, 2022 at 9:00 PM UTC
• Management Team:
  • Andy Hargreaves (VP Finance)
  • Tony Xu (Co-founder, Chair, and CEO)
  • Prabir Adarkar (Chief Financial Officer)

Call Summary

Financial Performance

• The U.S. business delivered continued growth described as north of 25% GOV in the quarter.
• Marketplace revenues were described as growing north of 30% for each of the last five quarters.
• The U.S. restaurant marketplace business was reported to have grown approximately fourfold over the last two and a half years and gained about 14 points of category share during that period.
• DashPass membership and monthly active users were reported to be at all-time highs, and order frequency and MAUs were described as growing year-over-year.
• Prabir stated that 2022 incrementals are higher than the historical 7% contribution average due to lower Dasher all-in costs from improved retention and incremental supply hours.
• Q3 insurance costs were stated to be flat versus Q2 as a percentage of GOV.
• Non-GAAP measures were referenced and a reconciliation was noted to be available in the Letter to Shareholders on the Investor Relations website.

Guidance

• The company reiterated its expectation to increase annual EBITDA in 2023 in both dollar and margin terms, subject to discretionary investment choices.
• Prabir said that improving margins in investment areas plus increasing U.S. restaurant contribution profit will no longer be a perfect offset and will create EBITDA flow-through in 2023.
• The company emphasized that investment pace is discretionary and could be changed if new opportunities or adverse conditions arise.
• Q4 EBITDA guidance was referenced as reflecting benefits from Dasher cost improvements and product changes.
• The company committed to provide quantitative guidance for 2023 in the Q4 cadence rather than during this call.
• Prabir cautioned that if regulatory costs in a market are overly onerous, the company would act to protect EBITDA, implying market-level exit/pace options.