DoorDash Q2 profit falls to $200 million despite $4.45 billion revenue growth

Second-quarter revenue rose 36% as orders, Marketplace GOV and adjusted EBITDA increased, but earnings missed expectations and DoorDash warned fourth-quarter margins may weaken on higher costs.

Summary

DoorDash reported mixed second-quarter results, with revenue rising 36% year over year to $4.45 billion and topping consensus, while profit fell to $200 million, or 46 cents a share, from $285 million, or 65 cents a share, a year earlier. Total orders increased 27% to 970 million, Marketplace GOV reached $33.1 billion, up 36%, and adjusted EBITDA rose 40% to $914 million. Earnings missed expectations, with FactSet-cited consensus at 47 cents a share in the older report and a Street estimate of 49 cents in the newer report. DoorDash guided third-quarter Marketplace GOV to $33 billion to $34 billion and adjusted EBITDA to $950 million to $1.1 billion, while saying fourth-quarter EBITDA would be weaker as a percentage of Marketplace GOV because of seasonal Dasher costs, higher insurance expenses and increased investment.

Terms & Concepts
  • Marketplace GOV: Gross order value across DoorDash's platform, a measure of the total value of orders.
  • Adjusted EBITDA: Earnings before interest, taxes, depreciation and amortization, adjusted for certain items, used as a measure of operating performance.
  • DashPass: DoorDash's paid membership program, whose members accounted for about 75% of U.S. grocery and retail orders in the quarter.