Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________

FORM 8-K

____________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):

February 15, 2024

____________________________________

DOORDASH, INC.

(Exact name of registrant as specified in its charter)

____________________________________


Delaware	001-39759	46-2852392
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

303 2nd Street, South Tower, 8th Floor

San Francisco, California 94107

(Address of principal executive offices) (Zip Code)

(650) 487-3970

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

____________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A common stock, par value of $0.00001 per share	DASH	The Nasdaq Stock Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On February 15, 2024, DoorDash, Inc. ("DoorDash" or the “Company”) issued a press release announcing its financial results for the quarter ended December 31, 2023. DoorDash also issued a Letter to Shareholders to provide additional information about DoorDash and its performance. Copies of the press release and Letter to Shareholders are attached as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K and are incorporated herein by reference.

Item 7.01 Regulation FD Disclosure.

On February 15, 2024, DoorDash posted supplemental investor materials on the investor relations section of its website (ir.doordash.com). DoorDash announces material information to the public about DoorDash, its products and services, and other matters through a variety of means, including filings with the Securities and Exchange Commission, press releases, public conference calls, webcasts, the investor relations section of its website (ir.doordash.com), its blog (doordash.news) and its X account (@DoorDash) in order to achieve broad, non-exclusionary distribution of information to the public and for complying with its disclosure obligations under Regulation FD.

The information in Item 2.02 and Item 7.01 of this Current Report on Form 8-K, and Exhibit 99.1 and Exhibit 99.2 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 8.01 Other Events.

On February 15, 2024, DoorDash announced the authorization of a share repurchase program for the repurchase of shares of its Class A common stock, in an aggregate amount of up to $1.1 billion. This program is in addition to the prior repurchase program for the repurchase of $750 million shares of Class A common stock, which was completed in the fourth quarter of fiscal 2023. The Company’s board of directors expects to assess any future repurchase programs based on its balance sheet, expected free cash flow, and alternative investment opportunities at the time. Any future authorization will be approved and executed consistent with the the Company’s capital allocation strategy.

Repurchases may be made from time to time through open market repurchases or through privately negotiated transactions subject to market conditions, applicable legal requirements and other relevant factors. Open market repurchases may be structured to occur in accordance with the requirements of Rule 10b-18 of the Exchange Act. DoorDash may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under this authorization. The repurchase program does not obligate the Company to acquire any particular amount of its Class A common stock, and it may be suspended at any time at the Company’s discretion. The timing and actual number of shares repurchased may depend on a variety of factors, including price, general business and market conditions, and alternative investment opportunities.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.


Exhibit No.			Description
99.1			Press Release dated February 15, 2024
99.2			Letter to Shareholders dated February 15, 2024
104			Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


			DOORDASH INC.

Date: February 15, 2024			/s/ Tony Xu
			Tony Xu
			Chief Executive Officer

Exhibit 99.1

DoorDash Releases Fourth Quarter and Full Year 2023 Financial Results

February 15, 2024

SAN FRANCISCO--(BUSINESS WIRE)-- DoorDash, Inc. (NASDAQ: DASH) today announced its financial results for the quarter and fiscal year ended December 31, 2023. In addition to our financial results below, our letter to shareholders is available on the DoorDash investor relations website at http://ir.doordash.com.

Execution and innovation are distinct skills and our team demonstrated an ability to do both at a high level in 2023. Throughout the year, we invested aggressively to improve our offerings and launched new products and features that expanded our potential in local commerce. We are proud that our innovation and investment helped generate nearly $50 billion in sales for local merchants and over $15 billion in earnings for more than 7 million Dashers in 2023. At the same time, we grew Marketplace GOV by 25%1 year-over-year (Y/Y) in 2023 to $66.8 billion, with improvements to our unit economics and fixed cost leverage. We are incredibly proud of our team's progress.

In 2024, our focus will not change. We will invest to build tools that solve problems for consumers, merchants, and Dashers, while expanding the scale, breadth, and profit potential of our business. We look forward to the work.

Fourth Quarter 2023 Key Financial Metrics

•Total Orders increased 23% Y/Y to 574 million and Marketplace GOV increased 22% Y/Y to $17.6 billion.

•Revenue increased 27% Y/Y to $2.3 billion and Net Revenue Margin increased to 13.1% from 12.6% in Q4 2022.

•GAAP net loss including redeemable non-controlling interests was $156 million compared to $642 million in Q4 2022, and Adjusted EBITDA increased to $363 million from $117 million in Q4 2022.


	Three Months Ended
(in millions, except percentages)	Dec. 31, 2022			Mar. 31, 2023			Jun. 30, 2023			Sept. 30, 2023			Dec. 31, 2023
Total Orders	467			512			532			543			574
Total Orders Y/Y growth	27		%	27		%	25		%	24		%	23		%
Marketplace GOV	$	14,446		$	15,913		$	16,468		$	16,751		$	17,639
Marketplace GOV Y/Y growth	29		%	29		%	26		%	24		%	22		%
Revenue	$	1,818		$	2,035		$	2,133		$	2,164		$	2,303
Revenue Y/Y growth	40		%	40		%	33		%	27		%	27		%
Net Revenue Margin	12.6		%	12.8		%	13.0		%	12.9		%	13.1		%
GAAP gross profit	$	762		$	921		$	951		$	962		$	1,026
GAAP gross profit as a % of Marketplace GOV	5.3		%	5.8		%	5.8		%	5.7		%	5.8		%
Contribution Profit	$	447		$	533		$	620		$	640		$	689
Contribution Profit as a % of Marketplace GOV	3.1		%	3.3		%	3.8		%	3.8		%	3.9		%
GAAP net loss including redeemable non-controlling interests	$	(642)		$	(162)		$	(172)		$	(75)		$	(156)
GAAP net loss including redeemable non-controlling interests as a % of Marketplace GOV	(4.4)		%	(1.0)		%	(1.0)		%	(0.4)		%	(0.9)		%
Adjusted EBITDA	$	117		$	204		$	279		$	344		$	363
Adjusted EBITDA as a % of Marketplace GOV	0.8		%	1.3		%	1.7		%	2.1		%	2.1		%
Basic shares, options and RSUs outstanding as of period end	452			444			449			450			450

1 Marketplace GOV grew 22% Y/Y on a pro forma basis in 2023, including the results from Wolt in both periods.

Our Performance

Our business is based on a simple theory: if we build tools that help local merchants thrive in a digital world, we can delight consumers, grow sales for merchants, create incremental earnings opportunities for Dashers, and build a large, meaningful, and profitable business.

Throughout 2023, our team's focus on steadily improving our products, along with significant investments, helped us improve the experience we offer to consumers, merchants, and Dashers. This helped drive MAUs2 to an all-time high of over 37 million in December 2023 from over 32 million in December 2022, with a Y/Y increase in average order frequency.3 DashPass and Wolt+ members also grew to an all-time high of over 18 million at the end of 2023 from over 15 million at the end of 2022. The combination of growing users and higher average engagement drove Q4 2023 Total Orders up 23% Y/Y to 574 million and Q4 2023 Marketplace GOV up 22% Y/Y to $17.6 billion.

In addition to strong growth in Marketplace GOV, improvements to logistics efficiency and quality and a growing contribution from advertising helped drive Q4 2023 revenue up 27% Y/Y to $2.3 billion. Net Revenue Margin was 13.1% in Q4 2023, up 47 basis points Y/Y and 13 basis points quarter-over-quarter (Q/Q).

GAAP cost of revenue, exclusive of depreciation and amortization, was $1.2 billion in Q4 2023, up 21% Y/Y and 6% Q/Q. GAAP cost of revenue, exclusive of depreciation and amortization, increased Y/Y and Q/Q primarily due to an increase in Total Orders and Marketplace GOV. As a percentage of Marketplace GOV, GAAP cost of revenue, exclusive of depreciation and amortization, was 7.0% in Q4 2023, compared to 7.0% in Q4 2022 and 6.9% in Q3 2023. The Q/Q increase in GAAP cost of revenue, exclusive of depreciation and amortization, as a percentage of Marketplace GOV was driven primarily by an increase in costs associated with our first party distribution business.

GAAP sales and marketing expense was $460 million in Q4 2023, up 7% Y/Y and 2% Q/Q. On a Y/Y basis, the increase in GAAP sales and marketing expense was driven primarily by an increase in consumer acquisition costs, partially offset by a decrease in Dasher acquisition costs. On a Q/Q basis, the increase in GAAP sales and marketing expense was driven primarily by an increase in Dasher acquisition costs, partially offset by a decrease in consumer acquisition costs. As a percentage of Marketplace GOV, GAAP sales and marketing expense was 2.6% in Q4 2023, down from 3.0% in Q4 2022 and 2.7% in Q3 2023.

We have continued to manage operating expenses with discipline. In Q4 2023, GAAP research and development expense was $253 million, consistent with $250 million in both Q4 2022 and Q3 2023. As a percentage of Marketplace GOV, GAAP research and development expense was 1.4% in Q4 2023, down from 1.7% in Q4 2022 and 1.5% in Q3 2023.

GAAP general and administrative expense was $320 million in Q4 2023, up 7% from $300 million in Q4 2022 and 11% from $289 million in Q3 2023. The Y/Y increase in GAAP general and administrative expense was driven primarily by an increase in litigation reserves. The Q/Q increase was driven primarily by a sales tax benefit in Q3 2023 that did not repeat in Q4 2023. As a percentage of Marketplace GOV, GAAP general and administrative expense was 1.8% in Q4 2023, down from 2.1% in Q4 2022, but up slightly from 1.7% in Q3 2023.

The combination of efficiency gains and disciplined fixed cost management drove GAAP net loss including redeemable non-controlling interests to $156 million in Q4 2023, compared to GAAP net loss including redeemable non-controlling interests of $642 million in Q4 2022. Q4 2023 and Q4 2022 GAAP net loss including redeemable non-controlling interests included impairments of a strategic investment of $101 million and $312 million, respectively.

Q4 2023 Adjusted EBITDA reached an all-time high of $363 million compared to $117 million for Q4 2022 and $344 million in Q3 2023. Adjusted EBITDA as a percentage of Marketplace GOV was 2.1% in Q4 2023, compared to 0.8% in Q4 2022 and 2.1% in Q3 2023.

2 Based on the number of individual consumer accounts that have completed an order on our Marketplaces in the past month, measured as of December 31, 2023.

3 Calculated as the total number of orders placed on our Marketplaces divided the number of individual consumer accounts that have completed an order on our Marketplaces in the past month, measured as of December 31, 2023.

In Q4 2023 we generated operating cash flow of $485 million and Free Cash Flow of $398 million. In 2023, we generated operating cash flow of $1.7 billion and Free Cash Flow of $1.3 billion.

In 2023, we repurchased a total of 12.0 million shares of our Class A common stock for $750 million ($62.66 per share), which completed the share repurchase authorization we announced in February 2023. In February 2024, our board of directors authorized the repurchase of up to $1.1 billion of our Class A common stock.

Financial Outlook


Period	Marketplace GOV	Adj. EBITDA
Q1	$18.5 billion - $18.9 billion	$320 million - $380 million
2024	$74.0 billion - $78.0 billion	$1.5 billion - $1.9 billion

As a reminder, we do not intend to provide new or updated full-year financial outlooks following this release. We intend to continue providing quarterly outlooks for Marketplace GOV and Adjusted EBITDA in our future earnings releases.

In terms of general trends, as we progress through 2024, we currently expect Adjusted EBITDA as a percentage of Marketplace GOV to be similar in Q1 and Q2 and then increase from Q2 to Q3, due primarily to increases in Net Revenue Margin and leverage on sales and marketing expenses.

Based on our current outlook and assuming a stock price in line with recent trading levels, we expect:

•2024 stock-based compensation to be in a range of $1.1 billion to $1.2 billion,

•2024 RSU issuances of 8.5 million to 9.5 million, net of expected forfeitures, and

•2024 depreciation and amortization expense of approximately $560 million to $590 million.

Our outlook assumes that key foreign currency rates remain relatively stable at current levels. Our outlook also anticipates significant levels of ongoing investment in new categories and international markets. We caution investors that consumer spending in any of our geographies could deteriorate relative to our outlook, which could drive results below our expectations. Additionally, our increasing international exposure heightens risks associated with operating in foreign markets, including geopolitical and currency risks. Changes in the international operating environment could negatively impact results versus our current outlook.

We have not provided GAAP net loss including redeemable non-controlling interests outlook or a reconciliation of Adjusted EBITDA outlook to GAAP net loss including redeemable non-controlling interests as a result of the uncertainty regarding, and the potential variability of, reconciling items such as taxes and other items. Accordingly, a reconciliation of Adjusted EBITDA outlook to GAAP net loss including redeemable non-controlling interests is not available without unreasonable effort. However, it is important to note that material changes to reconciling items could have a significant effect on future GAAP results. We have provided historical reconciliations of GAAP to non-GAAP metrics in tables at the end of this release. For more information regarding the non-GAAP financial measures discussed in this release, please see "Non-GAAP Financial Measures" below.

Analyst and Investor Conference Call and Earnings Webcast

DoorDash will host a conference call and webcast to discuss our quarterly results today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). Those interested in listening to the call can register and attend by visiting our Investor Relations page at https://ir.doordash.com. An archived webcast will be available on our Investor Relations page shortly after the call.

Available Information

We announce material information to the public about us, our products and services, and other matters through a variety of means, including filings with the U.S. Securities and Exchange Commission (the "SEC"), press releases, public conference calls, webcasts, the investor relations section of our website (ir.doordash.com), our blog (doordash.news), and

our X account (@DoorDash) in order to achieve broad, non-exclusionary distribution of information to the public and for complying with our disclosure obligations under Regulation FD.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” "aim," “will,” “should,” “expect,” “plan,” "try," “anticipate,” “could,” “would,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategies, plans, or intentions. Forward-looking statements in this release include, but are not limited to, our expectations regarding our financial position and operating performance, including our outlook and guidance for the first quarter and full year 2024, our expectations regarding our international business, our plans and expectations regarding our investment approach, our expectations regarding our local commerce opportunity, stock-based compensation expenses, expenses related to Dashers and Dasher acquisition, trends in our business, and demand for our platform and for local commerce platforms in general, and our plans and expectations regarding share dilution, including our planned share repurchase and equity award issuances. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including risks and uncertainties related to: competition, managing our growth and corporate culture, financial performance, investments in new geographies, products, or offerings, our ability to attract merchants, consumers, and Dashers to our platform, legal proceedings and regulatory matters and developments, any future changes to our business or our financial or operating model, and our brand and reputation. The forward-looking statements contained in this release are also subject to other risks and uncertainties that could cause actual results to differ from the results predicted, including those more fully described in our filings with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2022 and our quarterly reports on Form 10-Q. All forward-looking statements in this release are based on information available to DoorDash and assumptions and beliefs as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law.

Use of Non-GAAP Financial Measures

To supplement our financial information presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"), we consider certain financial measures that are not prepared in accordance with GAAP, including adjusted cost of revenue, adjusted sales and marketing expense, adjusted research and development expense, adjusted general and administrative expense, Adjusted Gross Profit, Adjusted Gross Margin, Contribution Profit, Contribution Margin, Adjusted EBITDA, and Free Cash Flow. We use these financial measures in conjunction with GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies and to communicate with our board of directors concerning our business and financial performance. We believe that these non-GAAP financial measures provide useful information to investors about our business and financial performance, enhance their overall understanding of our past performance and future prospects, and allow for greater transparency with respect to metrics used by our management in their financial and operational decision making. We are presenting these non-GAAP financial measures to assist investors in seeing our business and financial performance through the eyes of management, and because we believe that these non-GAAP financial measures provide an additional tool for investors to use in comparing results of operations of our business over multiple periods with other companies in our industry.

We define adjusted cost of revenue as cost of revenue, exclusive of depreciation and amortization, excluding stock-based compensation expense and certain payroll tax expense, allocated overhead, and inventory write-off related to restructuring. Allocated overhead is determined based on an allocation of shared costs, such as facilities (including rent and utilities) and information technology costs, among all departments based on employee headcount. We define adjusted sales and marketing expense as sales and marketing expenses excluding stock-based compensation expense and certain payroll tax expense, and allocated overhead. We define adjusted research and development expense as research and development expenses excluding stock-based compensation expense and certain payroll tax expense, and allocated overhead. We define adjusted general and administrative expense as general and administrative expenses excluding stock-based compensation expense and certain payroll tax expense, certain legal, tax, and regulatory settlements,

reserves, and expenses, transaction-related costs (primarily consists of acquisition, integration, and investment related costs), impairment expenses, and including allocated overhead from cost of revenue, sales and marketing, and research and development.

We define Adjusted Gross Profit as gross profit plus (i) depreciation and amortization expense related to cost of revenue, (ii) stock-based compensation expense and certain payroll tax expense included in cost of revenue, (iii) allocated overhead included in cost of revenue, and (iv) inventory write-off related to restructuring. Gross profit is defined as revenue less (i) cost of revenue, exclusive of depreciation and amortization and (ii) depreciation and amortization related to cost of revenue. Adjusted Gross Margin is defined as Adjusted Gross Profit as a percentage of revenue for the same period.

We define Contribution Profit as our gross profit less sales and marketing expense plus (i) depreciation and amortization expense related to cost of revenue, (ii) stock-based compensation expense and certain payroll tax expense included in cost of revenue and sales and marketing expenses, (iii) allocated overhead included in cost of revenue and sales and marketing expenses, and (iv) inventory write-off related to restructuring. We define gross margin as gross profit as a percentage of revenue for the same period and we define Contribution Margin as Contribution Profit as a percentage of revenue for the same period.

Adjusted EBITDA is a measure that we use to assess our operating performance and the operating leverage in our business. We define Adjusted EBITDA as net income (loss) including redeemable non-controlling interests, adjusted to exclude (i) certain legal, tax, and regulatory settlements, reserves, and expenses, (ii) loss on disposal of property and equipment, (iii) transaction-related costs (primarily consists of acquisition, integration, and investment related costs), (iv) impairment expenses, (v) restructuring charges, (vi) inventory write-off related to restructuring, (vii) provision for (benefit from) income taxes, (viii) interest income, net, (ix) other expense, net, (x) stock-based compensation expense and certain payroll tax expense, and (xi) depreciation and amortization expense.

We define Free Cash Flow as cash flows from operating activities less purchases of property and equipment and capitalized software and website development costs.

We define Total Orders as all orders completed through our marketplaces and platform services businesses over the period of measurement.

We define Marketplace GOV as the total dollar value of orders completed on our marketplaces, including taxes, tips, and any applicable consumer fees, including membership fees related to DashPass and Wolt+. Marketplace orders include orders completed through Pickup and DoorDash for Work. Marketplace GOV does not include the dollar value of orders, taxes and tips, or fees charged to merchants, for orders fulfilled through Drive, Storefront, or Bbot.

Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Further, these metrics have certain limitations in that they do not include the impact of certain expenses that are reflected in our consolidated statements of operations. Thus, our adjusted cost of revenue, adjusted sales and marketing expense, adjusted research and development expense, adjusted general and administrative expense, Adjusted Gross Profit, Adjusted Gross Margin, Contribution Profit, Contribution Margin, Adjusted EBITDA, and Free Cash Flow should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.

DOORDASH, INC.

CONSOLIDATED BALANCE SHEETS

(in millions)

(Unaudited)


	December 31, 2022		December 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	1,977	$	2,656
Short-term marketable securities	1,544		1,422
Funds held at payment processors	441		356
Accounts receivable, net	400		533
Prepaid expenses and other current assets	358		630
Total current assets	4,720		5,597
Long-term restricted cash	211		11
Long-term marketable securities	397		583
Operating lease right-of-use assets	436		436
Property and equipment, net	637		712
Intangible assets, net	765		659
Goodwill	2,370		2,432
Non-marketable equity securities	124		46
Other assets	129		363
Total assets	$	9,789	$	10,839
Liabilities, Redeemable Non-controlling Interests and Stockholders' Equity
Current liabilities:
Accounts payable	$	157	$	216
Operating lease liabilities	55		68
Accrued expenses and other current liabilities	2,332		3,126
Total current liabilities	2,544		3,410
Operating lease liabilities	456		454
Other liabilities	21		162
Total liabilities	3,021		4,026

Redeemable non-controlling interests	14		7
Stockholders’ equity:
Common stock	—		—
Additional paid-in capital	10,633		11,887
Accumulated other comprehensive income (loss)	(33)		73
Accumulated deficit	(3,846)		(5,154)
Total stockholders’ equity	6,754		6,806
Total liabilities, redeemable non-controlling interests and stockholders’ equity	$	9,789	$	10,839

DOORDASH, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except share amounts which are reflected in thousands, and per share data)

(Unaudited)


	Three Months Ended December 31,				Year Ended December 31,
	2022		2023		2022		2023
Revenue	$	1,818	$	2,303	$	6,583	$	8,635
Costs and expenses:
Cost of revenue, exclusive of depreciation and amortization shown separately below	1,014		1,229		3,588		4,589
Sales and marketing	429		460		1,682		1,876
Research and development	250		253		829		1,003
General and administrative	300		320		1,147		1,235
Depreciation and amortization	111		130		369		509
Restructuring charges	84		—		92		2
Total costs and expenses	2,188		2,392		7,707		9,214
Loss from operations	(370)		(89)		(1,124)		(579)
Interest income, net	16		51		30		152
Other expense, net	(305)		(101)		(305)		(107)
Loss before income taxes	(659)		(139)		(1,399)		(534)
Provision for (benefit from) income taxes	(17)		17		(31)		31
Net loss including redeemable non-controlling interests	(642)		(156)		(1,368)		(565)
Less: net loss attributable to redeemable non-controlling interests	(2)		(2)		(3)		(7)
Net loss attributable to DoorDash, Inc. common stockholders	$	(640)	$	(154)	$	(1,365)	$	(558)
Net loss per share attributable to DoorDash, Inc. common stockholders, basic and diluted	$	(1.65)	$	(0.39)	$	(3.68)	$	(1.42)
Weighted-average number of shares outstanding used to compute net loss per share attributable to DoorDash, Inc. common stockholders, basic and diluted	387,162		399,336		371,413		392,948

DOORDASH, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

(Unaudited)


	Year Ended December 31,
	2021		2022		2023
Cash flows from operating activities
Net loss including redeemable non-controlling interests	$	(468)	$	(1,368)	$	(565)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	156		369		509
Stock-based compensation	486		889		1,088
Reduction of operating lease right-of-use assets and accretion of operating lease liabilities	52		81		108
Adjustments to non-marketable equity securities, including impairment, net	—		303		101
Other	75		20		15
Changes in assets and liabilities, net of assets acquired and liabilities assumed from acquisitions:
Funds held at payment processors	(174)		(86)		86
Accounts receivable, net	(94)		(33)		(141)
Prepaid expenses and other current assets	85		(165)		(105)
Other assets	(51)		(90)		(96)
Accounts payable	79		(15)		70
Accrued expenses and other current liabilities	595		566		702
Payments for operating lease liabilities	(44)		(75)		(113)
Other liabilities	(5)		(29)		14
Net cash provided by operating activities	692		367		1,673
Cash flows from investing activities
Purchases of property and equipment	(129)		(176)		(123)
Capitalized software and website development costs	(108)		(170)		(201)
Purchases of marketable securities	(2,344)		(1,948)		(1,946)
Maturities of marketable securities	720		1,552		1,940
Sales of marketable securities	224		387		7
Purchases of non-marketable equity securities	(409)		(15)		(17)
Net cash acquired in acquisitions	—		71		—
Other investing activities	(1)		(1)		(2)
Net cash used in investing activities	(2,047)		(300)		(342)
Cash flows from financing activities
Proceeds from exercise of stock options	32		11		6
Deferred offering costs paid	(10)		—		—
Repayment of convertible notes	(333)		—		—
Taxes paid related to net share settlement of equity awards	(172)		—		—
Repurchase of common stock	—		(400)		(750)
Other financing activities	—		14		(8)
Net cash used in financing activities	(483)		(375)		(752)
Foreign currency effect on cash, cash equivalents, and restricted cash	(1)		(10)		5
Net increase (decrease) in cash, cash equivalents, and restricted cash	(1,839)		(318)		584
Cash, cash equivalents, and restricted cash
Cash, cash equivalents, and restricted cash, beginning of period	4,345		2,506		2,188
Cash, cash equivalents, and restricted cash, end of period	$	2,506	$	2,188	$	2,772
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets
Cash and cash equivalents	$	2,504	$	1,977	$	2,656
Restricted cash included in prepaid expenses and other current assets	—		—		105
Long-term restricted cash	2		211		11
Total cash, cash equivalents, and restricted cash	$	2,506	$	2,188	$	2,772
Supplemental disclosure of cash flow information
Cash paid for interest	$	42	$	—	$	—

Non-cash investing and financing activities
Purchases of property and equipment not yet settled	$	23	$	34	$	13
Stock-based compensation included in capitalized software and website development costs	$	93	$	132	$	161

DOORDASH, INC.

NON-GAAP FINANCIAL MEASURES

(Unaudited)


	Three Months Ended
(In millions)	Dec. 31, 2022		Mar. 31, 2023		Jun. 30, 2023		Sept. 30, 2023		Dec. 31, 2023

Cost of revenue, exclusive of depreciation and amortization	$	1,014	$	1,069	$	1,135	$	1,156	$	1,229
Adjusted to exclude the following:
Stock-based compensation expense and certain payroll tax expense	(31)		(24)		(43)		(37)		(36)
Allocated overhead	(8)		(9)		(8)		(8)		(7)
Adjusted cost of revenue	$	975	$	1,036	$	1,084	$	1,111	$	1,186

Sales and marketing	$	429	$	496	$	471	$	449	$	460
Adjusted to exclude the following:
Stock-based compensation expense and certain payroll tax expense	(28)		(24)		(36)		(30)		(29)
Allocated overhead	(5)		(6)		(6)		(6)		(3)
Adjusted sales and marketing	$	396	$	466	$	429	$	413	$	428

Research and development	$	250	$	231	$	269	$	250	$	253
Adjusted to exclude the following:
Stock-based compensation expense and certain payroll tax expense	(116)		(98)		(134)		(119)		(119)
Allocated overhead	(3)		(4)		(5)		(5)		(2)
Adjusted research and development	$	131	$	129	$	130	$	126	$	132

General and administrative	$	300	$	285	$	341	$	289	$	320
Adjusted to exclude the following:
Stock-based compensation expense and certain payroll tax expense	(93)		(84)		(99)		(94)		(88)
Certain legal, tax, and regulatory settlements, reserves, and expenses(1)	(19)		(19)		(49)		(44)		(50)
Transaction-related costs(2)	(3)		(1)		(1)		—		—
Impairment expenses(3)	(2)		—		—		—		—
Allocated overhead from cost of revenue, sales and marketing, and research and development	16		19		19		19		12
Adjusted general and administrative	$	199	$	200	$	211	$	170	$	194

(1)We exclude certain costs and expenses from our calculation of adjusted general and administrative expense because management believes that these costs and expenses are not indicative of our core operating performance, do not reflect the underlying economics of our business, and are not necessary to operate our business. These excluded costs and expenses consist of (i) certain legal costs primarily related to worker classification matters, as well as a settlement entered into in connection with an initiative to serve underrepresented communities, (ii) reserves and settlements or other resolutions for or related to the collection of sales, indirect, and other taxes that we do not expect to incur on a recurring basis, (iii) costs related to the settlement of an intellectual property matter, (iv) expenses related to supporting various policy matters, including those related to worker classification, other labor law matters, and price controls, and (v) donations as part of our relief efforts in connection with the COVID-19 pandemic and Russia's invasion of Ukraine. We believe it is appropriate to exclude the foregoing matters from our calculation of adjusted general and administrative expense because (1) the timing and magnitude of such expenses are unpredictable and thus not part of management’s budgeting or forecasting process, and (2) with respect to worker classification matters, management currently expects such expenses will not be material to our results of operations over the long term as a result of increasing legislative and regulatory certainty in this area, including as a result of Proposition 22 in California and similar legislation.

(2)Consists of acquisition, integration, and investment related costs, primarily related to our acquisition of Wolt.

(3)Consists of impairment expense related to an operating lease right-of-use asset associated with our former headquarters.


	Three Months Ended
(In millions, except percentages)	Dec. 31, 2022			Mar. 31, 2023			Jun. 30, 2023			Sept. 30, 2023			Dec. 31, 2023

Revenue	$	1,818		$	2,035		$	2,133		$	2,164		$	2,303
Less: Cost of revenue, exclusive of depreciation and amortization	(1,014)			(1,069)			(1,135)			(1,156)			(1,229)
Less: Depreciation and amortization related to cost of revenue	(42)			(45)			(47)			(46)			(48)
Gross profit	$	762		$	921		$	951		$	962		$	1,026
Gross Margin	41.9		%	45.3		%	44.6		%	44.5		%	44.6		%
Less: Sales and marketing	(429)			(496)			(471)			(449)			(460)
Add: Depreciation and amortization related to cost of revenue	42			45			47			46			48
Add: Stock-based compensation expense and certain payroll tax expense included in cost of revenue and sales and marketing	59			48			79			67			65
Add: Allocated overhead included in cost of revenue and sales and marketing	13			15			14			14			10
Contribution Profit	$	447		$	533		$	620		$	640		$	689
Contribution Margin	24.6		%	26.2		%	29.1		%	29.6		%	29.9		%


	Three Months Ended
(In millions, except percentages)	Dec. 31, 2022			Mar. 31, 2023			Jun. 30, 2023			Sept. 30, 2023			Dec. 31, 2023

Gross profit	$	762		$	921		$	951		$	962		$	1,026
Add: Depreciation and amortization related to cost of revenue	42			45			47			46			48
Add: Stock-based compensation expense and certain payroll tax expense included in cost of revenue	31			24			43			37			36
Add: Allocated overhead included in cost of revenue	8			9			8			8			7
Adjusted Gross Profit	$	843		$	999		$	1,049		$	1,053		$	1,117
Adjusted Gross Margin	46.4		%	49.1		%	49.2		%	48.7		%	48.5		%


	Three Months Ended
(In millions)	Dec. 31, 2022		Mar. 31, 2023		Jun. 30, 2023		Sept. 30, 2023		Dec. 31, 2023

Net loss including redeemable non-controlling interests	$	(642)	$	(162)	$	(172)	$	(75)	$	(156)
Certain legal, tax, and regulatory settlements, reserves, and expenses(1)	19		19		49		44		50
Transaction-related costs(2)	3		1		1		—		—
Restructuring charges	84		2		—		—		—
Impairment expenses(3)	2		—		—		—		—
Provision for (benefit from) income taxes	(17)		17		(9)		6		17
Interest income, net	(16)		(27)		(34)		(40)		(51)
Other expense, net(4)	305		1		4		1		101
Stock-based compensation expense and certain payroll tax expense(5)	268		230		312		280		272
Depreciation and amortization expense	111		123		128		128		130
Adjusted EBITDA	$	117	$	204	$	279	$	344	$	363

(1)We exclude certain costs and expenses from our calculation of Adjusted EBITDA because management believes that these costs and expenses are not indicative of our core operating performance, do not reflect the underlying economics of our business, and are not necessary to operate our business. These excluded costs and expenses consist of (i) certain legal costs primarily related to worker classification matters, as well as a settlement entered into in connection with an initiative to serve underrepresented communities, (ii) reserves and settlements or other resolutions

for or related to the collection of sales, indirect, and other taxes that we do not expect to incur on a recurring basis, (iii) costs related to the settlement of an intellectual property matter, (iv) expenses related to supporting various policy matters, including those related to worker classification, other labor law matters, and price controls, and (v) donations as part of our relief efforts in connection with the COVID-19 pandemic and Russia's invasion of Ukraine. We believe it is appropriate to exclude the foregoing matters from our calculation of Adjusted EBITDA because (1) the timing and magnitude of such expenses are unpredictable and thus not part of management’s budgeting or forecasting process, and (2) with respect to worker classification matters, management currently expects such expenses will not be material to our results of operations over the long term as a result of increasing legislative and regulatory certainty in this area, including as a result of Proposition 22 in California and similar legislation.

(2)Consists of acquisition, integration, and investment related costs, primarily related to our acquisition of Wolt.

(3)Consists of impairment expense related to an operating lease right-of-use asset associated with our former headquarters.

(4)Consists primarily of adjustments to non-marketable equity securities, including impairment.

(5)Excludes stock-based compensation related to restructuring, which is included in restructuring charges in the table above.

Estimate of Certain Components of Stock-Based Compensation Expense


(in millions)	2023 (Actuals)		2024		2025		2026

CEO performance award	$	104	$	67	$	7	$	—
Wolt retention and revesting	150		145		139		53
Pre-IPO RSUs: amortization of stepped-up value	67		52		3		—
New hire, continuing employee, and other grants	767		836 - 936		NA		NA
Total stock-based compensation	$	1,088	$1,100 - 1,200		NA		NA

(1)In November 2020, our board of directors granted restricted stock units ("RSUs") to our Chief Executive Officer, Tony Xu, covering 10,379,000 shares of our Class A common stock, which we refer to here as the 2020 CEO Performance Award. The award is intended to be the exclusive equity award to Mr. Xu over a seven year performance period, which ends November 23, 2027. The award has nine tranches that are eligible to vest based on the achievement of stock price goals ranging from $187.60 to $501.00, measured using an average of our stock price over a consecutive 180-day period during the performance period. For more information on the 2020 CEO Performance Award, please refer to our annual proxy statement.

(2)Certain RSUs awarded prior to or around the time of our initial public offering have grant-date fair values that significantly exceed the fair value of the awards (“409A value”) prevailing at the time they were committed to employees. The amounts included here represent the stock-based compensation associated with the excess amount of the grant-date fair value over the 409A value.

Reconciliation of net cash provided by operating activities to Free Cash Flow


	Trailing Twelve Months Ended
(in millions)	Dec. 31, 2022		Mar. 31, 2023		Jun. 30, 2023		Sept. 30, 2023		Dec. 31, 2023

Net cash provided by operating activities	$	367	$	784	$	1,012	$	1,211	$	1,673
Purchases of property and equipment	(176)		(183)		(165)		(139)		(123)
Capitalized software and website development costs	(170)		(173)		(194)		(194)		(201)
Free Cash Flow	$	21	$	428	$	653	$	878	$	1,349


IR Contact: ir@doordash.com			PR Contact: press@doordash.com

Exhibit 99.2

February 15, 2024

Dear Fellow Shareholders,

Our mission is to grow and empower local economies and our primary financial goal is to maximize long-term free cash flow per share. Our ability to contribute positively to people’s lives drives our pursuit of perpetual improvement. In 2023, we helped generate nearly $50 billion in sales for hundreds of thousands of local merchants, provided opportunities for over 7 million Dashers to earn over $15 billion, and allowed tens of millions of consumers to save hundreds of millions of hours that they could use to spend time with their families, hang out with friends, or write letters to shareholders. We are incredibly proud of this, particularly because we believe the vast majority of the economic activity we foster stays in the local economy, helping fuel its health and vibrancy.

After a rapid expansion in the surface area of our business from 2020 through 2022, 2023 was, in many ways, a year of organizing our efforts and focusing on the key inputs that help us build scale efficiently. In 2023, we improved unit economics in all major areas of our business, including: our U.S. restaurant marketplace, U.S. new verticals marketplace, international marketplaces, and Platform Services. The efficiency improvements allowed us to continue investing aggressively to improve the experiences we offer, while also significantly reducing our GAAP Net Loss and more than tripling our Adjusted EBITDA.

The improvements to our product helped drive double-digit year-over-year (Y/Y) growth in Monthly Active Users (MAUs)1 and Y/Y growth in average order frequency2 through the vast majority of 2023. This helped us grow Total Orders in our U.S. restaurant marketplace at a similar pace in 2023 as 2022, accelerate Y/Y growth in Total Orders in our U.S. new verticals marketplace in each of the last three quarters, and, based on third party data, gain category share in the U.S. and the vast majority of our international markets. We believe many of the investments we made also helped seed our future growth potential.

We expect to continue investing aggressively in several areas of our business in 2024, particularly in our new verticals and international markets. At the same time as we continue to push our existing businesses forward, it is clear there is much more we can do. If we are to become a foundational element of local commerce in the digital era, we must execute at a high level to improve the efficiency and effectiveness of our existing services, but also innovate to build entirely new products, services, and processes. These are distinct skills and our hope is that 2024 will be an excellent year for our development of both.

Merchants

Although we serve multiple stakeholders, we think of ourselves largely as a merchant services company. If we provide local merchants with world class tools to generate and fulfill demand, we believe we can unleash the advantages they have in proximity to consumers, brand affinity, and curated selection, which should help them grow and thrive.

Our merchant partners are often constrained by time, money, and data. Consequently, our goal is to provide services that are impactful, easy to use, and attractively priced. Achieving this is difficult. Over the last three years, we spent over $40 billion on research and development, sales and marketing, and the direct costs associated with transactions3 in order to expand the capabilities of our marketplaces and Platform Services, improve quality, and generate efficiencies through scale. Th

1 Based on the number of individual consumer accounts that have completed an order on our Marketplaces in the month of measurement.

2 Calculated as the total number of orders placed on our Marketplaces divided the number of individual consumer accounts that have completed an order on our Marketplaces in the period of measurement.

3 Direct costs include Dasher pay, credits and refunds, and cost of revenue, exclusive of depreciation and amortization.

is has helped us bring the benefits of high-quality software, logistics scale, and order digitization to hundreds of thousands of merchants.

In 2023, our Marketplaces drove a 23% Y/Y increase in sales to merchants4, with an average partner commission rate that declined slightly compared to 2022. We believe the average commission rate on our Marketplaces remains well below what it would cost a merchant to replicate our services on their own.

A simple way to measure the value merchants see in our services is by looking at how many choose to use them and whether they continue to do so over time. In 2023, well over 100,000 new merchants chose to join our Marketplaces and, over the same period, we estimate an average of well under 1% of restaurant partners in the U.S. chose to stop leveraging our Marketplace each month. This is a strong reflection of the value merchants find in the services we are building.

For many local merchants, services like ours are now a natural extension of their business. In recent years, we have invested heavily to expand the number of verticals and geographies we serve and our team’s efforts have begun attracting a larger number of non-restaurant merchants, which now number more than 150,000 across our Marketplaces and Platform Services.

The Internet has helped make every economy a global economy and many local merchants now face disadvantages in scale, data, and efficiency when competing against the world’s largest retailers and e-tailers. We believe the services we built to date are helping our merchant partners compete successfully in this world by operating with increased simplicity, greater scale, and greater efficiency. It will likely take decades and our highest levels of innovation and execution to enable local merchants of all sizes to operate in an inherently digital and omni-channel fashion, but we are off to a good start.

Dashers

Our goal is to make dashing as accessible, flexible, and rewarding as possible. We must earn Dashers’ time and effort with every order, which means we have more incentive than anyone we are aware of to make dashing valuable and attractive to people who are considering it.

We made several improvements to the dashing experience and introduced entirely new features and resources in 2023. Partially because of this, more Dashers chose to earn on our platform in 2023 than in any previous year. This is a strong testament to our innovation in the Dasher experience and the incredible value people see in dashing. It is notable that a record number of people chose to dash in the U.S. in 2023 at the same time as the United States labor market was strong, with unemployment remaining under 4%5, wage growth of more than 5%6, and an average of more than 1.5 job openings for each unemployed person5. This firmly suggests that people are finding value in dashing that is incremental to the traditional structured labor market.

We believe demand for dashing has been strong precisely because it is different from structured labor. Dashing combines incredibly low barriers to entry with high levels of flexibility and scale, which allows people to use our platform to generate earnings in ways that traditional structured work, and many other forms of independent contractor work, are not well-suited for.

Indeed, it is clear in our data and survey work that Dashers use dashing in this way. In Q4, the average Dasher spent less than four hours per week on deliveries and around 90% of Dashers spent less than 10 hours per week on deliveries. In our survey of U.S. Dashers in Q4 2023, 82% of Dashers said they had other income or responsibilities or were retired, and 79% of Dashers said they feel less stressed and anxious about their financial situation because they can dash whenever they need to.

4 Measured on a pro-forma basis, including merchant sales through the Wolt Marketplace for all periods.

5 Bureau of Labor Statistics.

6 Federal Reserve Bank of Atlanta.

When added to a labor market that also includes full-time and part-time work, we believe dashing increases people’s choice and adds to their financial security by enabling them to fill gaps that can’t be filled through traditional employment, whether full-time or part-time. In this way, dashing is a bit like sand in the jar of life analogy. Large rocks are great at filling the jar quickly, but they leave a bunch of empty spaces. If you add sand to the mix, you can fill in the spaces between the rocks and fill the jar more completely, creating greater earning potential for individuals and increasing productive capacity across the labor market as a whole.

Individuals can choose to add dashing to help fill gaps left by full-time or part-time work, creating greater total earning potential for individuals and the labor market as a whole.

We believe strongly in working with policymakers to enact laws that protect choice, access, and security for workers. However, certain jurisdictions have now enacted bad laws around independent contractor work (in which dashing is usually captured) that fail to recognize the incrementality of dashing and instead attempt to conform dashing to traditional structures of work. Unfortunately, the more regulations make dashing look, feel, and serve the purpose of a traditional job, the more regressive they are likely to be, both for individuals trying to achieve their financial goals and for the local economy. For instance, in New York City and Seattle, we expect recent regulation to cause local merchants to lose revenue, Dashers to have fewer and less flexible earnings opportunities, consumers to face higher costs, and the local government to receive less tax revenue. Said differently, these laws take the sand back out of the jar, leaving empty spaces and lost opportunity.

Consumers

In December 2023, we had over 37 million MAUs, up from over 32 million in December 2022, with over 18 million DashPass and Wolt+ members at the end of 2023, up from over 15 million at the end of 2022. Average order frequency in December 2023 increased versus the previous December for the sixth consecutive year.

We believe we have been able to continue attracting new consumers and driving higher consumer engagement for the simple reason that our service continues to get better. Across our consumer-facing services, we remain focused on steadily improving the combination of selection, quality, affordability, and service we provide. Within our core U.S. restaurant marketplace in 2023, solid execution in these areas helped us attract new consumers, drive further increases in average order frequency, and drive order growth that was largely consistent with 2022.

In categories beyond restaurants, our service is more nascent, so it has even more room to improve. We made significant progress improving the quality of our service and increasing awareness in 2023. This helped drive accelerated Y/Y growth

in Total Orders in our U.S. new verticals marketplace in each of the last three quarters of 2023. In December, over 20% of our MAUs ordered from one of our new verticals categories, with increased order frequency in new verticals compared to a year ago.

Despite progress, we believe our selection in new verticals is still shallow, our quality has significant room to improve, and consumer awareness for our services remains low. In order to become top-of-mind when consumers are considering a purchase beyond restaurants, we must add more merchants, create more seamless ordering experiences, improve our order-level execution, and make our service more affordable. Work and investment in these areas will remain a key focus for us in 2024.

Although each country and each community we serve is unique, we have yet to find a place where consumers do not care about selection, quality, affordability, and service. Consequently, our focus on these components of consumer value is echoed in our non-U.S. markets. Our team has executed extremely well against our goals in these areas and, across our international markets in 2023, we grew MAU by over 30%, nearly doubled the combined number of DashPass and Wolt+ members, increased average order frequency, and we believe gained category share in the vast majority of the countries we operate in. We believe penetration in many of our international markets remains relatively low, and we continue to see substantial scope to improve the value we provide to consumers in all the categories we participate in.

Conclusion

In 2023, we celebrated our 10th anniversary and our third full year as a public company. To the extent we have found success to date, we believe it is because our team and our culture fit the problem at hand. We revel in the process of problem solving and apply our approach to both innovation and the search for incremental improvement.

In recent years, we operated through what can fairly be described as a volatile environment. Our team has navigated government-imposed lockdowns, rapid changes in unemployment levels in both directions, the imposition and subsequent reversal of historic levels of fiscal stimulus, a generational spike in inflation, a corresponding generational spike in interest rates, changing and sometimes counterproductive regulatory environments, and, sadly, wars. Through all of this, our approach, processes, and the fundamentals behind our execution have remained consistent, which means the last three years have generally felt familiar, though never easy. This is a testament to our culture and our team.

As we expand the scale and scope of our business, we expect the number of challenges we will face to grow. We will approach these the same way as we have in the past, by simply trying to get a little better each day, with the end goal of delighting more consumers, driving more sales for merchants, generating more earnings for Dashers, and creating more value for our shareholders. Our expectations of ourselves are high. We will do our best to exceed them.

We could not be more grateful to our employees and stakeholders for the confidence they place in us, or more humbled by our shareholders, who push us while entrusting us with their capital. Thank you for making this journey possible.

Sincerely,

Tony Xu, Co-founder, CEO and Board Chair, and Ravi Inukonda, CFO

Ps. As we mentioned last quarter, after 13 shareholder letters in the last three years, we intend to write them on an annual basis going forward. Thanks for reading. We look forward to talking to you again next year.

Forward-Looking Statements

This shareholder letter contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” "aim," “will,” “should,” “expect,” “plan,” "try," “anticipate,” “could,” “would,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategies, plans, or intentions. Forward-looking statements in this shareholder letter include, but are not limited to, our expectations regarding our financial position and operating performance, our plans and expectations regarding our business and investment approach, our strategies and expectations regarding improvements to our services, our expectations regarding our local commerce opportunity, trends in our business, including the effects of the macroeconomic environment, and demand for our platform and for local commerce platforms in general. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including risks and uncertainties related to: competition, managing our growth and corporate culture, financial performance, including our ability to forecast our performance due to our limited operating history, investments in new geographies, products, or offerings, our ability to attract merchants, consumers, and Dashers to our platform, legal proceedings and regulatory matters and developments, any future changes to our business or our financial or operating model, and our brand and reputation. The forward-looking statements contained in this shareholder letter are also subject to other risks and uncertainties that could cause actual results to differ from the results predicted, including those more fully described in our filings with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2022 and our quarterly reports on Form 10-Q. All forward-looking statements in this shareholder letter are based on information available to DoorDash and assumptions and beliefs as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law.

Use of Non-GAAP Financial Measures

To supplement our financial information presented in accordance with accounting principles generally accepted in the United States ("GAAP"), we consider certain financial measures that are not prepared in accordance with GAAP, including Adjusted EBITDA. We use non-GAAP financial measures in conjunction with GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with our board of directors concerning our business and financial performance. We believe that these non-GAAP financial measures provide useful information to investors about our business and financial performance, enhance their overall understanding of our past performance and future prospects, and allow for greater transparency with respect to metrics used by our management in their financial and operational decision making. We are presenting Adjusted EBITDA, a non-GAAP financial measure, to assist investors in seeing our business and financial performance through the eyes of management, and because we believe that Adjusted EBITDA, and certain other non-GAAP financial measures, provide an additional tool for investors to use in comparing results of operations of our business over multiple periods with other companies in our industry.

Adjusted EBITDA is a measure that we use to assess our operating performance and the operating leverage in our business. We define Adjusted EBITDA as net income (loss) including redeemable non-controlling interests, adjusted to exclude (i) certain legal, tax, and regulatory settlements, reserves, and expenses, (ii) loss on disposal of property and equipment, (iii) transaction-related costs (primarily consists of acquisition, integration, and investment related costs), (iv) impairment expenses, (v) restructuring charges, (vi) inventory write-off related to restructuring, (vii) provision for (benefit from) income taxes, (viii) interest (income) expense, net, (ix) other (income) expense, net, (x) stock-based compensation expense and certain payroll tax expense, and (xi) depreciation and amortization expense.

Our definition of Adjusted EBITDA may differ from the definition used by other companies and therefore comparability may be limited. In addition, other companies may not publish a similar metric. The use of Adjusted EBITDA may be further limited in that it does not include the impact of certain expenses that are reflected in our consolidated statements of operations. Thus, our non-GAAP financial measures, including Adjusted EBITDA, should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.

Cover	Nov. 01, 2023
Cover [Abstract]
Document Type	8-K
Document Period End Date	Feb. 15, 2024
Entity Registrant Name	DOORDASH, INC.
Entity Incorporation, State or Country Code	DE
Entity File Number	001-39759
Entity Tax Identification Number	46-2852392
Entity Address, Address Line One	303 2nd Street
Entity Address, Address Line Two	South Tower
Entity Address, Address Line Three	8th Floor
Entity Address, City or Town	San Francisco
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94107
City Area Code	650
Local Phone Number	487-3970
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Class A common stock, par value of $0.00001 per share
Trading Symbol	DASH
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Entity Central Index Key	0001792789
Amendment Flag	false