DoorDash (DASH) shares surged early Wednesday after the company posted impressive fourth-quarter earnings, highlighted by strong revenue growth and a robust outlook for 2025.
The food delivery giant reported a 25% increase in revenue, reaching $2.87 billion, surpassing analysts’ expectations of $2.84 billion.
Earnings came in at 33 cents per share, just shy of the anticipated 34 cents. More significantly, DoorDash processed 685 million orders in the quarter, generating a gross order value (GOV) of $21.3 billion—exceeding the projected $20.9 billion. The company also achieved a 56% year-over-year increase in adjusted EBITDA, which stood at $566 million, toward the higher end of its guidance range.
Earnings came in at 33 cents per share, just shy of the anticipated 34 cents. More significantly, DoorDash processed 685 million orders in the quarter, generating a gross order value (GOV) of $21.3 billion—exceeding the projected $20.9 billion. The company also achieved a 56% year-over-year increase in adjusted EBITDA, which stood at $566 million, toward the higher end of its guidance range.
Expansion and Market Share Gains Fuel Growth
DoorDash continues to expand beyond restaurant delivery, making significant inroads into grocery and retail. These new verticals are growing faster than its core restaurant business, demonstrating the company’s ability to diversify revenue streams.
A key driver of growth has been DoorDash’s ability to increase user engagement. Monthly active users (MAUs) reached a record high of over 42 million in December 2024, up from 37 million the year before. Additionally, over 25% of MAUs placed orders in categories outside of traditional restaurant deliveries, further reinforcing the company’s expansion strategy. Subscription services like DashPass and Wolt+ also saw strong growth, contributing to higher order frequency.
Internationally, DoorDash’s business continues to gain market share and has turned gross profit positive. CEO Tony Xu emphasized that the company remains focused on geographic expansion and improving service quality to sustain long-term growth.
DoorDash continues to expand beyond restaurant delivery, making significant inroads into grocery and retail. These new verticals are growing faster than its core restaurant business, demonstrating the company’s ability to diversify revenue streams.
A key driver of growth has been DoorDash’s ability to increase user engagement. Monthly active users (MAUs) reached a record high of over 42 million in December 2024, up from 37 million the year before. Additionally, over 25% of MAUs placed orders in categories outside of traditional restaurant deliveries, further reinforcing the company’s expansion strategy. Subscription services like DashPass and Wolt+ also saw strong growth, contributing to higher order frequency.
Internationally, DoorDash’s business continues to gain market share and has turned gross profit positive. CEO Tony Xu emphasized that the company remains focused on geographic expansion and improving service quality to sustain long-term growth.
Challenges and Future Outlook
Despite the strong quarter, DoorDash faces some challenges. The company acknowledged that improving product quality and affordability, particularly in grocery delivery, remains a priority. Additionally, while its take rate remained stable, seasonal factors such as Dasher pay could impact profitability.
Looking ahead, DoorDash expects first-quarter gross order value to range between $22.6 billion and $23 billion, slightly above analysts’ estimates. However, its guidance for adjusted EBITDA of $550 million to $600 million was slightly below Wall Street’s expectations.
Analysts remain bullish on the stock despite near-term headwinds. Needham analyst Bernie McTernan raised his price target to $225 from $180, citing sustained growth in bookings and market expansion. Meanwhile, William Blair analyst Ralph Schackart highlighted DoorDash’s “continued strong momentum into 2025.”
Following the earnings report, DoorDash shares climbed more than 6% to $204.69 in premarket trading. Over the past 12 months, the stock has gained more than 60%, reflecting investor confidence in the company’s ability to navigate economic challenges and maintain its leadership in the delivery space.
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Despite the strong quarter, DoorDash faces some challenges. The company acknowledged that improving product quality and affordability, particularly in grocery delivery, remains a priority. Additionally, while its take rate remained stable, seasonal factors such as Dasher pay could impact profitability.
Looking ahead, DoorDash expects first-quarter gross order value to range between $22.6 billion and $23 billion, slightly above analysts’ estimates. However, its guidance for adjusted EBITDA of $550 million to $600 million was slightly below Wall Street’s expectations.
Analysts remain bullish on the stock despite near-term headwinds. Needham analyst Bernie McTernan raised his price target to $225 from $180, citing sustained growth in bookings and market expansion. Meanwhile, William Blair analyst Ralph Schackart highlighted DoorDash’s “continued strong momentum into 2025.”
Following the earnings report, DoorDash shares climbed more than 6% to $204.69 in premarket trading. Over the past 12 months, the stock has gained more than 60%, reflecting investor confidence in the company’s ability to navigate economic challenges and maintain its leadership in the delivery space.
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