DoorDash Inc (DASH) Reports Strong Q4 and Full Year 2023 Results
Marketplace GOV: Grew by 25% year-over-year to $66.8 billion in 2023.
Revenue: Increased by 27% year-over-year to $2.3 billion in Q4 2023.
Net Loss: GAAP net loss improved to $156 million in Q4 2023 from $642 million in Q4 2022.
Adjusted EBITDA: Increased significantly to $363 million in Q4 2023 from $117 million in Q4 2022.
Free Cash Flow: Generated $398 million in Q4 2023, contributing to $1.3 billion for the full year.
Share Repurchase: Completed a $750 million share repurchase in 2023 and authorized an additional $1.1 billion for 2024.
On February 15, 2024, DoorDash Inc (NASDAQ:DASH) released its 8-K filing, disclosing its financial performance for the fourth quarter and the full fiscal year of 2023. The company, a leading online food order demand aggregator, has continued to expand its services beyond restaurants to include grocery, retail, pet supplies, and flowers, generating a gross order volume of $53.4 billion in 2022, up 27% year over year, and $6.6 billion in revenue, up 35%.
DoorDash's Q4 2023 results showed a significant increase in total orders, which rose by 23% year-over-year to 574 million, and Marketplace Gross Order Value (GOV) increased by 22% year-over-year to $17.6 billion. The company's revenue for the quarter was $2.3 billion, marking a 27% increase from the same period in the previous year. Notably, the net revenue margin improved to 13.1%, up from 12.6% in Q4 2022.
The company's GAAP net loss, including redeemable non-controlling interests, was notably reduced to $156 million in Q4 2023 from a substantial $642 million in Q4 2022. Adjusted EBITDA saw a remarkable increase to $363 million from $117 million in Q4 2022, reflecting improvements in unit economics and fixed cost leverage. This performance underscores DoorDash's ability to scale efficiently while investing in innovation and product development.
Financial Highlights and Operational Efficiency
DoorDash's disciplined approach to managing operating expenses is evident in its Q4 2023 results. The GAAP research and development expense remained consistent year-over-year at $253 million, while GAAP general and administrative expense saw a moderate increase to $320 million from $300 million in Q4 2022. The company's efficiency gains and fixed cost management contributed to the reduced GAAP net loss.
DoorDash also reported strong cash flow performance, generating $485 million in operating cash flow and $398 million in Free Cash Flow for Q4 2023. For the full year, the operating cash flow reached $1.7 billion, with Free Cash Flow totaling $1.3 billion. These figures demonstrate the company's solid cash-generating capabilities.
Strategic Investments and Shareholder Returns
In 2023, DoorDash repurchased 12.0 million shares of its Class A common stock for $750 million, completing the share repurchase authorization announced in February 2023. The board of directors has authorized a new repurchase of up to $1.1 billion of Class A common stock, signaling confidence in the company's future and a commitment to delivering shareholder value.
The company's financial outlook for Q1 2024 anticipates a Marketplace GOV between $18.5 billion and $18.9 billion, with Adjusted EBITDA ranging from $320 million to $380 million. For the full year 2024, the Marketplace GOV is projected to be between $74.0 billion and $78.0 billion, with Adjusted EBITDA expected to be between $1.5 billion and $1.9 billion.
DoorDash's performance in 2023 and its strategic initiatives for 2024 reflect a company that is not only growing rapidly but also enhancing its profitability and operational efficiency. The company's focus on innovation and investment in local commerce, coupled with disciplined cost management, positions it well for continued success in the competitive online food delivery market.
For a more detailed analysis of DoorDash Inc (NASDAQ:DASH)'s financial results and future outlook, investors and interested parties are encouraged to review the full 8-K filing.
Explore the complete 8-K earnings release (here) from DoorDash Inc for further details.
This article first appeared on GuruFocus.
