DoorDash Inc., the leading on-demand delivery service provider, has recently made headlines with its impressive financial performance for the fiscal year ended December 31, 2024. The company reported significant growth across various metrics, as detailed in its annual report on Form 10-K submitted on February 14, 2025.
DoorDash's revenue surged by 24% year-on-year, reaching $10.7 billion, which is largely attributed to a 20% increase in its Marketplace Gross Order Value (GOV), totaling $80.2 billion. This remarkable financial turnaround saw the company achieve net income of $123 million, contrasting sharply with the net loss of $558 million reported the previous year. The report highlights DoorDash's operational successes, particularly through its Marketplaces, which include the DoorDash and Wolt platforms operating across 30 countries.
Increasing consumer demand is reflected not only in the overall revenue but also in the Total Orders processed, which climbed to 2.6 billion orders, signifying a 20% growth compared to 2023. DoorDash also noted burgeoning advertising revenue, which has become increasingly integral to its financial health.
Despite the encouraging results, the company is not without its challenges. It faces various risks, including fierce competition within the delivery industry, regulatory hurdles, and issues surrounding the classification of its delivery workers, known as Dashers, as independent contractors. These factors could potentially impact the firm’s financial performance moving forward.
On the financial front, DoorDash's cost of revenue, excluding depreciation and amortization, increased by 21% to $5.5 billion, primarily driven by higher costs associated with order management and platform functionalities. Nevertheless, the company managed to strengthen its operating margins and propel its gross profit to $4.979 billion, which reflects greater efficiency compared to previous periods.
Ending 2024 with $6.2 billion in cash, cash equivalents, and marketable securities positioned DoorDash favorably, providing the liquidity necessary to support its growth strategies and operational expenses.
Adding to investor interest, Saudi Arabia’s Public Investment Fund disclosed its decision to exit its stake in Walmart and take up new positions, including DoorDash, during Q4 2024. Along those lines, DoorDash shares have garnered positive consensus from analysts, earning a “Moderate Buy” rating from 34 research firms. Among them, nine analysts issued hold recommendations, whereas 25 pointed toward buy recommendations.
Recent rating changes reflect optimism: Morgan Stanley increased its price target on DoorDash from $160 to $200, whereas Citigroup raised its target from $211 to $240. The company has also experienced notable insider trading activity, with Director Andy Fang selling 50,000 shares on November 18, worth approximately $8.6 million, and COO Prabir Adarkar selling 20,000 shares on December 27 for roughly $3.37 million. These transactions have raised eyebrows, as insiders sold over 932,000 shares valued at nearly $163 million total over the past ninety days.
Looking at institutional investment trends, it's noted more than 90% of DoorDash’s stock is held by institutional investors, all of whom actively manage their stakes. Noteworthy changes include Northern Trust Corp boosting its position by 18.8% and Manufacturers Life Insurance increasing theirs by 11% during the fourth quarter of 2024.
With shares recently traded up by 3.8%, reaching $213.38, and trading volume hitting over 6.8 million shares, DoorDash continues to demonstrate its resilience and growth potential. Its market capitalization stands at $88.64 billion, with plans for strategic growth initiatives underway.
DoorDash operates under two significant marketplaces—DoorDash Marketplace and Wolt Marketplace—while also providing additional services through its Commerce Platform. This includes white-label delivery services, which cater to merchants' needs for customer acquisition and order fulfillment. With over 42 million monthly active users and 22 million members across its DashPass and Wolt+
membership programs, the company is making strides to connect and engage with consumers more effectively.
To mitigate the competitive pressures, DoorDash plans to continue its investment strategy across various avenues, with significant focus on enhancing technology and platform efficiency. The company will also aim to expand geographically, all the whilst managing cost dynamics effectively to retain profitability.
Potential risks remain, including volatile economic conditions, regulatory requirements, and the need for consistent cybersecurity measures to protect its operational integrity. Nonetheless, the overall outlook on DoorDash’s strategy indicates optimism, with plans to maintain third-party liquidity through its cash reserves.
DoorDash's proactive stance on expansion, combined with its strong financial rebound, suggests it is strategically positioned to confront its challenges and exploit forthcoming opportunities within the rapidly changing on-demand delivery market.
DoorDash's 2024 financial performance not only highlights its significant recovery but also portrays the company’s ambition for continued growth amid competitive challenges.