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DoorDash has announced its fourth-quarter performance, which aligns closely with market expectations, despite experiencing a slight shortfall in earnings per share (EPS).
DoorDash (DASH 0.24%), a prominent player in the food delivery and logistics sector, unveiled its fourth-quarter earnings report on February 11. The company experienced notable revenue growth, reaching $2.87 billion, which represented an approximately 1% increase over analysts’ expectations of $2.84 billion. However, its EPS of $0.33 fell just short of the forecasted $0.34. The quarter showcased substantial progress across key performance indicators, including an uptick in marketplace order volume.
| Metric | Q4 2024 | Analysts’ Estimate | Q4 2023 | % Change |
|---|---|---|---|---|
| EPS | $0.33 | $0.34 | ($0.39) | N/A |
| Revenue | $2.87 billion | $2.84 billion | $2.30 billion | 24.8% |
| Adjusted EBITDA | $566 million | N/A | $363 million | 55.9% |
| Total orders | 685 million | N/A | 574 million | 19.3% |
| Marketplace gross order value | $21.28 billion | N/A | $17.64 billion | 20.6% |
Source: Analysts’ estimates for the quarter provided by FactSet.
Overview of DoorDash’s Business
As one of the largest online food delivery platforms in the United States, DoorDash connects consumers with local merchants, facilitating efficient order processing through its marketplace. The company is actively working to broaden its international presence while diversifying into non-food categories. Key to its sustained success will be enhancing marketplace growth, ensuring delivery partner satisfaction, and fostering robust relations with merchants through innovative service offerings.
In its endeavors to maintain a competitive edge, DoorDash is enhancing user experiences and seeking to grow its community of monthly active users, which currently exceeds 42 million.
Quarter Highlights
The considerable revenue boost of 24.8% year-over-year to $2.87 billion was fueled by a 19.3% growth in total orders, amounting to 685 million, and a 20.6% rise in marketplace gross order value to $21.28 billion.
DoorDash’s gross profit climbed by 33.7% from the previous year to reach $1.37 billion, with an improved gross profit margin rising to 6.4% compared to 5.8% the year before. The company reported its first full year of net income at $141 million, recovering from a $154 million loss in the same period last year. Adjusted EBITDA also hit a record high at $566 million, indicative of significant operational improvements.
Strategically, DoorDash broadened its merchant offerings by over 25% and bolstered its marketplace presence both domestically and internationally. The company has also been expanding its grocery delivery services and enhancing its advertising capabilities, partnering with major grocery chains, including Wegmans, to solidify its market presence.
Forward Outlook
Looking ahead to the first quarter of 2025, DoorDash anticipates marketplace gross order value between $22.6 billion and $23.0 billion, alongside an expected adjusted EBITDA of $550 million to $600 million. This forecast reflects confidence in ongoing growth prospects.
In upcoming quarters, the company plans to leverage technology for further enhancements to its platform and strengthen relationships with both merchants and consumers. Investors should pay close attention to developments in international growth and advertising revenue, as these areas are pivotal for future expansion and profitability.
JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has positions in and recommends DoorDash. The Motley Fool has a disclosure policy.
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