Late yesterday afternoon, DoorDash Inc. (DASH:NYSE) announced financial results for the first quarter of 2021 ended March 31, 2021.
In a letter to shareholders, the company's Co-founder, CEO and Board Chair Tony Xu and CFO Prabir Adarkar reported that the firm made solid progress in Q1/21 and that it increased the number of partner merchants that it supports across multiple categories. DoorDash added that in Q/21 it generated more earnings for a greater number of "Dashers" than it had done previously in any prior quarter and that it succeeded in serving the most end-customer consumers in its history.
The company touched on some of the key accomplishments in Q1/21 and listed that "it established new quarterly records for Total Orders and Marketplace GOV." In addition, the firm stated that it saw marked improvements in consumer retention with average order frequency rising to an all-time high and that it grew orders from non-restaurant categories by over 40% in Q1/21, versus Q1/20.
DoorDash advised that total revenue in Q1/21 grew by 198% to $1.1 billion, compared to $362 million in Q1/20. The company added that over the same time period, total orders grew 219% YoY to 329 million and marketplace GOV rose 222% YoY to $9.9 billion.
The firm indicated that GAAP gross profit increased by 233% to $493 million, compared to $148 million in Q1/20. The company also reported that for Q1/21 it had adjusted EBITDA of $43 million, versus an adjusted EBITDA loss of $70 million in Q1/20.
DoorDash stated that overall business operating trends look strong as consumer demand throughout its Marketplace remained attractive during Q1/21. The firm noted that in Q1/21 it experienced continued strength in many core consumer metrics including adding new customers and increasing the average order rate from existing consumers.
The firm advised that a little over a year ago it decided to broaden its focus from mostly restaurants to other segments in its Marketplace such as convenience items, grocery, alcohol, pets, and flowers and gifts. The company stated that in Q1/21 these areas increased by over 40% compared with Q1/20.
The company stated that it is taking steps to make Dashing easier and more rewarding and indicated that in Q1/21 its 2 million plus Dashers earned well over $2.5 billion. The firm added that Dasher earnings per active hour increased in Q1/21 compared to both Q4/20 and Q1/20. DoorDash pointed out that improvements in efficiency have helped in raising average Dasher earnings per active hour by over 40%, while also decreasing fees per order to the average customer by 13%.
The company provided some forward guidance and stated that for Q2/21, it expects Marketplace GOV activity to be in the range of $9.4-9.9 billion and that it anticipates that Q2/21 adjusted EBITDA will be within between $0 million and $100 million.
For FY/21, the firm stated that it expects Marketplace GOV of $35.0-38.0 billion.
DoorDash is headquartered in San Francisco and operates a logistics platform that connects merchants with customers via its independent delivery staff, which it calls "Dashers." The company allows consumers to place and pick up advance orders or request delivery. Transactions are seamless, contactless and efficient. The company offers consumers choices of all styles and types of cuisine in more than 4,000 cities in Australia, Canada and all 50 U.S. states.
DoorDash started the day with a market cap of around $37.6 billion with approximately 325.8 million shares outstanding and a short interest of about 4.1%. DASH shares opened more than 8% higher today at $125.00 (+$9.51, +8.23%) over yesterday's $115.49 closing price. The stock has traded today between $123.57 to $146.63 per share and closed at $141.07 (+$25.13, +21.68%).
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