Financial Results DoorDash Announces Q4 and Full-Year 2024 Performance Breakthrough
DoorDash, Inc. (NASDAQ: DASH) has announced its financial results for the fourth quarter and full fiscal year ending December 31, 2024. The company’s annual letter to shareholders, detailing its performance and strategic initiatives, is available on the DoorDash investor relations website.
A Strong Year of Growth and Profitability
DoorDash’s business strategy revolves around customer commitment, operational efficiency, scalability, and expansion of its role in local economies. This approach led to a 24% year-over-year (Y/Y) revenue growth in 2024, marking the company’s first full year of positive GAAP net income. Furthermore, DoorDash facilitated nearly $60 billion in sales for local merchants across 30 countries and enabled Dashers to earn over $18 billion.
These accomplishments underscore years of strategic execution and adherence to core principles, positioning DoorDash for continued expansion in scale, profitability, and economic impact in 2025 and beyond. By continuously optimizing logistics, enhancing platform technology, and expanding delivery categories, DoorDash has solidified its role as a leader in local commerce and food delivery services worldwide.
Fourth Quarter 2024 Key Financial Metrics
- Total Orders: Increased 19% Y/Y to 685 million.
- Marketplace Gross Order Value (GOV): Increased 21% Y/Y to $21.3 billion.
- Revenue: Grew 25% Y/Y to $2.9 billion.
- Net Revenue Margin: Increased to 13.5% from 13.1% in Q4 2023.
- GAAP Net Income: Achieved $141 million, compared to a loss of $(154) million in Q4 2023.
- Adjusted EBITDA: Increased to $566 million, up from $363 million in Q4 2023.
These results demonstrate the company’s ability to maintain steady growth while improving profitability. As DoorDash expands its operational scope and optimizes service efficiency, it continues to drive economic growth for merchants, Dashers, and consumers.
Operational Highlights
DoorDash’s mission to empower local economies remains at the core of its operations. The company aims to enhance efficiency through order-level execution and scale, reinvesting gains into product expansion and quality improvements. This strategic focus led to substantial growth in multiple business areas:
Marketplace Expansion:
- Improved unit economics in the U.S. restaurant category, new verticals, and international marketplaces.
- Increased merchant selection and product offerings, including groceries, retail, and convenience store items.
- Enhanced order efficiency, driving 20% Y/Y growth in Marketplace GOV and 24% Y/Y revenue growth.
- Expanded partnerships with large restaurant chains and independent businesses to improve customer access to a wider variety of food options.
Consumer Engagement:
- Monthly Active Users (MAUs) reached an all-time high of over 42 million in December 2024, compared to 37 million in December 2023.
- DashPass and Wolt+ memberships grew to over 22 million, up from 18 million in 2023, contributing to higher order frequency and customer retention.
- Over 25% of MAUs ordered from new verticals categories, up from 20% in 2023, showcasing increased demand for non-restaurant deliveries, including groceries, alcohol, and retail items.
U.S. and International Market Expansion:
- Double-digit growth in MAUs and order frequency throughout 2024, driven by improved platform features and marketing initiatives.
- Strongest quarter of growth in the U.S. restaurant category during Q4, reflecting increased customer reliance on delivery services.
- Thousands of new grocery stores added to the U.S. marketplace, increasing basket sizes and order frequency.
- International merchant selection grew over 25% Y/Y, attracting record numbers of new consumers.
- International orders grew faster than U.S. orders, driven by higher MAUs and increased order frequency in key markets such as Canada, Australia, and select European regions.
Entering 2025, DoorDash aims to enhance operational efficiency, reinvest in business growth, and explore new opportunities to expand its local commerce footprint. The company continues to assess strategic acquisitions and technological advancements that will further streamline its logistics network and improve customer experience.
Financial Performance and Strategic Investments
DoorDash demonstrated strong financial discipline and investment in key growth areas:
Revenue Growth:
- Total Orders increased 19% Y/Y to 685 million, reflecting sustained consumer demand.
- Marketplace GOV rose 21% Y/Y to $21.3 billion, highlighting the strength of DoorDash’s platform expansion.
- Advertising revenue contributed to revenue expansion, with more merchants leveraging DoorDash’s ad solutions to increase their visibility and sales.
Cost and Profitability Trends:
- GAAP cost of revenue (excluding depreciation and amortization) increased 18% Y/Y, primarily due to order volume growth and investment in logistics.
- GAAP gross profit grew 34% Y/Y to $1.4 billion, reflecting improved cost management and efficiencies in delivery operations.
- GAAP sales and marketing expenses increased 18% Y/Y, reflecting higher advertising spending to drive customer acquisition and engagement.
- GAAP research and development expenses rose 17% Y/Y, mainly due to increased personnel costs and investments in AI-driven logistics and customer personalization.
- GAAP general and administrative expenses remained stable, with slight increases due to legal, tax, and regulatory costs associated with international expansion.
Profitability and Cash Flow:
- GAAP net income was $141 million, compared to a $(154) million loss in Q4 2023, marking a significant financial turnaround.
- Adjusted EBITDA hit a record $566 million, up from $363 million in Q4 2023, reflecting strong operational performance and financial discipline.
- Operating cash flow for Q4 reached $518 million, with Free Cash Flow of $420 million, indicating improved capital efficiency.
- Full-year operating cash flow was $2.1 billion, with Free Cash Flow of $1.8 billion, showcasing DoorDash’s ability to generate sustainable cash flow.
Shareholder Returns and 2025 Outlook
DoorDash continued to enhance shareholder value through share repurchases and strategic financial planning:
Stock Buyback Program:
- In February 2024, the board authorized a $1.1 billion share repurchase program.
- By year-end, 2.1 million shares had been repurchased for $224 million, reflecting management’s confidence in the company’s future performance.
- In February 2025, a new $5.0 billion share repurchase authorization was announced, reinforcing DoorDash’s commitment to returning value to shareholders.
Financial Projections for 2025:
- Adjusted EBITDA as a percentage of Marketplace GOV is expected to rise from Q1 to Q3 as DoorDash continues optimizing efficiency.
- Stock-based compensation is projected between $1.1 billion and $1.2 billion, reflecting continued investment in employee retention and incentives.
- Depreciation and amortization expenses are estimated at $580 million to $600 million, reflecting investments in technology infrastructure and logistics.
While DoorDash anticipates robust investment in new categories and international markets, it remains cautious about economic uncertainties, foreign exchange risks, and geopolitical challenges. The company’s long-term strategy prioritizes expanding its product offerings while maintaining a disciplined financial approach to sustain profitability.
