DASH - Earnings call transcript Q4 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the DoorDash Q4 2020 Earnings Call. At this time, all participants are in listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Mr. Hargreaves. Andy sir. ahead, go Please

Andy Hargreaves

overall CEO Elaine. Hello, earnings relations. our XXXX like by welcome a CFO, Xu; Prabir Adarkar. everyone, I'm Andy and We'd expected well forward-looking DoorDash guidance, business, our future today statements call. joined results investor remind and be everyone to this and to including of that co-founder Hargreaves, making regulatory we'll as statements Tony pleasure performance call, long-term and fourth-quarter to be future growth regarding litigation and strategy, during as statements Thanks, related prospects and VP It's to the matters. of financial

in cause or imprecise actions future actual the statements on to results company are X, our public uncertainties. subject of Forward-looking from letter with materially to set forward-looking may our risk could be are and in today's in SEC methods and offering assumptions, those our statements investor are including incorrect described or SEC data under Statements forth described and December our risks on depend initial in differ that Forward-looking the prospectus that for Events captions our filings, and XXXX. filed the factors, final including

obligation as rely beliefs as on forward-looking of today's predictions not forward-looking update us by We that and forward-looking assumptions to based any law. to any as and call required future on should on note, our are statements events. Also You this statements of make statements the we information except disclaim available date.

to intended should results. X-K for GAAP filed letter, not considered in may reconciliation and with results be be of investor These furnished in measures non-GAAP on a our with our and our which found SEC discussing the During results this to are a addition GAAP financial Investor financial to GAAP non-GAAP substitute our Relations was website. we results, our our the certain measures. non-GAAP Form today non-GAAP comparable be including financial directly most regarding be will measures, call, such Information

Investor after entirety Finally, will turn With the and this its I'd shortly call way, to audio to an it in be the our of call our Tony. over is audio replay of available website like on call ends. webcast Relations out that website, on being the

Tony Xu

joining Thanks, thanks, put of empower earnings local very We first Andy, and we company everyone, started into and for grow XXXX years exist this our X.X and the really journey call. why our mission to focus ago. economies. to

the pandemic. and audiences, are has year and on enormous soon was As call, you I'd mission emerge our this first for during a this we times, of difficult this where and few uncertainty. we great all snapshot I'll hopefully by follow going executed faced earnings thought operations XXXX I most give out our how a of our made critical team is into thoughts as a challenges our sharing

While we proud exhausting communities. optimism, seeing executed at our our XX/X local our plans, ensure team best of did the and that all in part built for that to times, scenarios chose I'm prepared

financial to a income Dashers funding and we investment provide to after to add winter. by more earnings the vaccine. alone, We and earned to webinar million, health became hosted our help just of adapt merchants, was tamper-proof all And impact them our and growth assistance on restaurants QX Equally visits COVID-XX, by while began instant hand week, those of affordable We the We While the delivery, XXXX, million saw with surviving gloves Dashers' over In information nearly platform. merchants provided local last analysis during offering marketing shipping contact better of merchants into in were totaling than QX eight carried that drive by half U.S. DoorDash a prioritized commissions ensured prioritized to masks sanitizers, to in of one of an XX pandemic over liquidity. odds units We supplemental no packaging. by to loss. X,XXX and than furloughs the the job COVID collaborated of form people more who lifeline telehealth national millions local our $XXX campaigns lot reduced billion end the important, grants work showed by XXXX, March for of to safety our million restaurants. other much on forms with of Dashers, impacted about flexible for with especially over Dashers opportunities, $X PPE versus times in the QX. on doctors, distributed and the we first

entry the accelerated to XX% marketplace. into from From and observed year, last consumers For consumers, who categories December in convenience September order new growth categories. grocery our we on DoorDash these the we

of to this our meals and worldwide the teams own those all XXXX. organizations our in in millions of the thank like donating stepped up in by pandemic. Schools, subscriptions Public and most of City delivery supported and their groceries we and to those ways merchants America to to during powering each country Dashers Finally, the of Feeding need, healthcare United York community New to X.X the free who consumers, need food, million workers navigate DashPass to I and Way supplies with deliver Department want partnered across

today's build. the marketplace city compete vision, pandemic, As where not to of restaurants your economy. grow local long-term days. progress or empower hours will and all and we job bring aspire you I a economies, to to in to to sales, our plan Today, massive decades convenience grow of and which runway. thought our out marketplace every I'd business of of in enable is remind see most we everyone In our platform order is to build we to merchant take the in we still in of minutes, business The to brick-and-mortar category

in Canada the in we category-leading the and online largest excited convenience about data, U.S. launching categories. is Australia. the efficiency position Underpinning business we're making extend we even of a delivery this platform on grocery channel, by necessary to the early brick-and-mortar In the in as in operate them time, while we after merchants restaurants, tied their We as Outside survived where the This demand to platform DoorDash our Storefront, merchants task out result just solution, to of of merchants home. became convenience a to in products digital believe online over a toward our enable more our trend doubling possible beginning than from into seeing economy, COVID-XX. as platform consumer marketplace improving gives offer channels. are evolving to participate the further it marketplace. adapted operating And use that's the to preferences build and progress the less to capital to that go demonstrating in on to According ordering we're pandemic them our and momentum With is year, will product as platform. a an overseas maniacal to our down services extensibility task hand e-commerce investing an as to U.S. DoorDash don't are even they is we have other have and come in these best-in-class can Today, which the cost critical marketplace we me focus their we aided many our job empower unlocks future. same-day Over pandemic habituated long our Prabir. to grow The and in their own digital a where certainly longer-term execution working building and have have DoorDash seamlessly let skin. the way of a investment structure necessary serve as a their and merchant build to we will to before more business is effectively third-party more convenience only our on in to to have a have and that, systems. delivery digital cases become own back-of-house run enables consumers can use from to Drive categories

Prabir Adarkar

excited history, to to been opportunity our business how on manage and share and employees. our the capital. Thanks, allocate shareholders. everyone. consumers, we this our our constituent, are laser-focused and welcome fifth want Tony, four we've Dashers And we to today, constituents: core afternoon, good take merchants, I Throughout our

balance still We intend demand are us. ahead cycle life start invest our path to small in sheet, refined foreseeable Each through the If remain investments statement economics must invest with thresholds, we and early we own believe see capital the this have We date, income expect and to strong the these our earn project for of invest we growth opportunities made we opportunities. the to To we and pursue product substantial capital, the through aggressively on incremental continuously future. have than rather our meet case we our market fit. unit its bulk of experimented our navigating When capital. merits. been to and in

are we leader the invest managing advantages. or than expand intend business competitive we rather we business our the to this U.S., order long-term for but significant profit despite the in our scale scale, growth take into aggressively We maximize are initiatives see our margin dollars means the to in category growth. is, Consequently, further room rate percentages. to and and Impact

this accelerated volume. and behind return promotions, intently in of and directly guiding but forward. intend these output, GOV little provide As success going our an guidance the is you to EBITDA the saw, dining. but Marketplace provided guidance EBITDA plan make do advertising mix manage in-store metric. GOV reopening QX I'd to not the our We a to consumer revenues with detail for areas to ideal not more to and we and provide we as around pricing, in our XXXX reflecting dollars. in the our XXXX of relative assumption Underlying mix adjusted manage business decisions on Marketplace that. We to and inputs market we revenue dynamic model, adjusted Drive like In part of of DashPass each for will likely business and letter, investor do to We on guidance our focus a

consumer this While signals XXXX would vaccination markets and we positive predict. temporarily acknowledge changes Consequently, data reflects that many current and our in that reopened reopenings consumers have pandemic, than behavior from guidance the we have drive uncertainty. full-year could during sharper full seen

soon it manage exceptional provide and will hopeful up that to in Dashers we'll We that, reopen I'll our to deeply and scenario. experiences With to business merchants, any markets consumers questions. are open

Operator

of And question first line the Anmuth Instructions] comes Morgan. JP your from [Operator from Doug

Doug Anmuth

the two. taking for Thanks questions. I have

you terms just in of into the of then happening of in just GOV? the forward? in how in seeing some last talk broadly can first trends accelerating secondly, in a over quarter and some a year the growth the reopening signs of category about ties that thinking you going Thanks. about now on and of what marketing that in competition we've U.S. and Can XQ. quarter about the rationality space your the seen in you're you're guidance from And We've degree just peers. the talk little of more kind First, view in you bit how for seen kind consolidation your XQ how

Prabir Adarkar

take maybe Doug, that I'll question.

the quarter, terms in our in to relative of well first, as So January order are we in December in first QX. growth as seeing acceleration

So that that question. answers

the the So in drive then part competition period. retention joining of is amounts are base, that we more to driving and customers. in gains communicated. have acquire our and to given pay industry And higher the we of what and acquire customers consistent higher engagement continue us consumer unit which CPAs of of terms others in consistent to that, marketing to allows economics what's our the findings around With our with any respect and new

believe a more into we then our others. unit so LTV increase and economics drive help ability advantage And customers to it's competitive that increasing an an where translates acquire

Doug Anmuth

you. Thank

Operator

Ross comes of question from Sandler Barclays. from And your next the line

Ross Sandler

Thanks question for about the store in growth versus partner chart Drive rate; the marketplace about guys. the Hey, the letter a the latter.

little bit. in the around in might So take have fourth on down at order XXX% was growing And rate growth the looking mid-XXXX. think a slowed I Drive, quarter,

what So for just thoughts And of this coming at percent that is true? that point? from Drive -- orders just And the long-term business? are on it. That's any outlook

Prabir Adarkar

the into third from question fourth is Ross, talking so let I going quarter of which me think you take changes second take part about first, quarter. the the rate were the

controls incurred commission in so we jurisdictions QX. as Prop XX certain as XX.X% we Third quarter. really portion things that Prop quarter to And XX the price have reduced quarter in of which take during driving the was in and a incremental the which the Remember rate November, in two those fourth was had or costs XX.X%, cost. caps impact well of passed

net the disclosed believe impact price So letter. was of those million $XX from The XX we controls in basis or revenue I points. the controls, price

back, to the Sam's the In excited So business. as The as verticals, supplies, if strongly, retail. what and we businesses the and pet interesting marketplace, about and signed Drive vertical. ago, XX as both quarter Drive the such that on have continues in a Drive other as well beyond of a add year take is grow that's restaurants cost. platform underlying local Within diversified of we Prop that get we year-on-year But and Michael's be quarter concentrated flowers. was signed faster basis. you merchants delivery, Macy's. Drive, rate cleaner by PetSmart we've and On actual in picture Petco. you Drive now the inclusive a as Club continue restaurant pharma on increase in since largely orders about then, than well to on grew core thing were brought We the to the

So to excited we about continue the growth be here.

percentage and core year suffice say, to haven't Drive to disclosed continues year quarter and the place exactly quarter of We orders strongly in grow on quarter, Drive both faster past on this but to than business. what

Operator

Your next JMP. Josey the line of question comes Ron from from

Ron Josey

little the talked the for ask about bit of subs larger I orders. the bigger, subs. to a mix grew, think taking And DashPass a retention about part DashPass from Thanks In question, usage. Great. think, letter, of improved wanted I guys I you more

about talk views be more, and of about frequency terms of bit then Thank in And insights of DashPass January going helpful. you. consumer usage any as little retention behavior you particularly forward a think can we trends? would and on So just trends sort

Prabir Adarkar

have terms of yes, that disclosure the disclosed will Ron, our since in in S-X. grown subs, DashPass, but they sequentially of we I number the say haven't

to behind had season. among its delivery engagement to because in subscribers as the continue invest this our S-X, we due We increased Drive explained DashPass zero

certainly that's an avenue exciting to for So growth us.

and In we retention terms of COVID as as engagement engagement, well remain see at retention to continue highs.

both among users In well as fact, of the the platform. improve, product to DashPass non-DashPass engagement continues as within

So positive there. trends we're seeing

consumer in experience, behavior the In be term, of terms to long our tends sticky.

and will discovered DoorDash long enjoyed favorite believe we demand So get over ordered this they've the and once from consumer the and convenience, on benefits the situation their of restaurants persist new habits run. formed,

look Florida order sort U.S., we of and you and was grow. that continue even to when open, reopened, at in even to Texas so the weekly that our And markets in though partially like these markets Georgia pandemic volumes continue backdrop, the against see that

So your a that's into question. of I suspect question a heading sort promising is sign. guidance

back behavior our vaccine maybe the reverting gets right which levels. we're rolled address So fully will start assuming guidance, and is that embedded in that as -- consumer I'll to out pre-COVID now,

people along And so generally in seasonality ordering. when with summer that's what tend guidance, embedded QX, the go standard out versus to QX

amount of we've that There's embedded behavior and post-pandemic, seeing the certain reflect provided. we're a does so trying uncertainty in to guidance. what consumer And with guidance to that our you're in respect

Ron Josey

Super helpful. Thank you.

Operator

from Goldman Sachs. your question comes from next Heath And Terry

Heath Terry

far. and like that the how your to by And of of see progress update it. were ship that Bloomingdale's to Great. give delivery -- you and going if came that of probably extent just work try others, but the of relationship I pace told third-party opportunity them, where that through general they the than you're the you Nike season so you're out the what address companies It's the holiday we was size us wondering could network to, bit being experiments. could seeing that an Macy's, an with kind you're a merchandise, in experiment, doing and more you're on

Tony Xu

I'll Heath, question. take that it's Tony.

that really on of marketplace it linings we our whether is e-commerce, If of store, you the some retailer, a were of a silver as they a this given of e-commerce past every pandemic, restaurant during as are I well can think seeing as the us, that any we think that participating a for And restrictions exclusively in year. both business platform. sometimes sides is brick-and-mortar saw in or

of a category And front, has partnerships marketplace already, Walgreens picked we when launched our and about X-Eleven, delivery estimates, with CVS, early, Again, given of announced just ago extensibility to according other have third-party frequency to that of of audience progress. the the some how early That of the quite the highest the convenience item we you're how biggest category goods others. types very there, stores able with platform building categories. very, but for up some the lot a the largest relative year in deliveries there most into the think other covering be DoorDash there is in to On many momentum seeing accelerate of starting restaurants are very already convenience I of second and And the nature there of are. many restaurants, U.S. number quickly us stores made many these of

for On delivering front, lot been of a from Drive these QX. a partners DoorDash XXXX actually platform in launched while. we've the

and So it's categories with And really whether Sam's of the with into came now. in the as mentioned and we PetSmart Prabir likes past years partnered pharmacy in or be retail Club. fruition pet Macy's that the Petco, about Michael's, supplies, of some four old that year,

a there presence, supply great what think how which every omnichannel I thing. both is marketplace as to And a we'll be platform. our to business trying redo well with meet expect grow. recognizes figure omnichannel they really our to you're so And is Every seeing that chains their is with out as them, to business post-pandemic

Heath Terry

Great. very much. Thank you

Operator

next your Eric from Sheridan is question And UBS. from

Eric Sheridan

to against counter come want taking back so investments Thank you longer-term opportunities. for I the to question. much the the

now either outside takes of process growth of give bigger about before and the the IPO expansion. about just sense and way you're both inorganic you building core markets? us your a globally the talked globally of organic puts thinking and geographic businesses sort businesses or acquiring post You've of Can

Tony Xu

believe, Yes, which Eric, growing we have that if on are you has our think of We're restaurants, Drive today, in is massive marketplace. -- the take international. of platform We're addition core area And fourth to -- in I'll one. adding our runway about the becoming investments ahead. we Look, products we portfolio Storefront. -- multi-marketplace goal our category to a on adding and categories multicategory

like taking given a opportunities Australia with the we've becoming XXXX we're what just run. our we'll terms bring our opportunities we footprint of also believe Canada a really even how saw playbook. respect improvements of in company we've seen, we and seen geographic against what ones operate especially in what really So them look gained opportunities liking to how and in, perspective efforts. With portfolio those And any geographies. some we organic underpenetrated into the enter, at our of and weigh view terms our and current in international on some very share long-term own see multiproduct a the long how over we we with is of where unit and we global economics, of our in large in opportunities these we as are, outside And obviously,

of a like for we always playbook, differentiated seek and to we'll our enter all markets far, So in the audiences. way

Prabir Adarkar

to food massive. runway I delivery that core mean, just growth the And even don't add within for point, business, sight to the I want make sure is Tony's we lose to

a fraction just that. tiny compared overall compare spend, restaurant of to you our If we're GOV the

a lot alone. growth of runway there's for delivery just in So food

to Now tiny, further new adds as verticals you addressable that market a tiny and of grocery such tack fraction onto that. convenience and where our the

as grow where an opportunities. business So, early to relatively avenues the aspire we're important even those for an U.S. and certainly into, definitely growth, have but in many international area is priority core we

Eric Sheridan

so Thanks much.

Operator

from And question from Alex Potter your Piper is Sandler. next

Alex Potter

Thanks, guys.

things say Just within you're the But that different to brain a night, the these various maybe bandwidth, there. are verticals just were thinking right most maybe, bed important, were follow-on the international, all previous spending of power opportunities now, they're on you different management we go what discussion to the you growth to amount guess, it's less? I having question, divide just about if you're I know versus Drive, but easy at like

Tony Xu

surface and to take Look, and the business. it's was And we that. goal a marketplace which both many a every decades, have a platform I'll Yes. full certainly, always, build brick-and-mortar plate, can broad in area. we over transform a

that I when up And the different right to setting maturation about, aperture of ago wide we to of, opening So and guess, well think was we of It's we years started as terms And it in see, Prabir of is are these that often we do we're in the tend way dreams. projects right market leader that a remarks, more company. for as have -- in about very the they're tend what opportunity. is and development market leader the mentioned of that I lot measure of to some about talking fit both where success. less thing which X.X even team in The achieving -- up, invest, this with progression. kind my in we cross-functional most product are the stages we just comes as

and have long the the on it's like team that nothing just execution I have that making portfolio right really that guess and right it's that and -- on always we is the as focus focus area making single-threaded sure that So we else. investments so of not sure that

Alex Potter

press And potentially rumors, of Okay. the sort to talking state-by-state regulatory of maybe fight. on, been guess, I prevent fight the guess, kind of XX in type -- I another then, Prop nationally to in legal on question some front. unions There's a order

setup. one-and-done maybe like happens? that? with that like you labor that deal nationally, odds kind discussions can of guys you some then If sort having and What are unions onetime come Are to accurate? the Is agreement, it's actually of a you something

Tony Xu

to wherever the you paired want. that And what to And we about it's create how was the think other achieve and and policies look what it Prop in work to are with with tied that, for conversations. always it sides for this comes mean start and important have standards flexibility the been both aisle see portable any with XX% when post can in policy at discussions those have in opportunities what with we desire that of California. I there if just Scores this that around to State with to some you a Prop together Proposition flexibility And a maintain and Dashers I flexibility, of with support to that the achieved to think benefits politics Dashers. respect of in sided mean, of Both keep happy gives outcomes Promoter have starts exist I came I Dashers doesn't we're increase greater us, Well, security. XX of is type to flexibility is you opportunity Dasher. then Dashers' Net that California want and to anything saw it really XX, that that it the proportional set frankly, XX

outcomes or is where the this think I -- set out objectives business So instance actually that outcomes actually to an accomplish. it the the policy and achieve achieved

Alex Potter

very much. Thanks

Operator

Walmsley comes And Deutsche Bank. from next question your from Lloyd

Lloyd Walmsley

if I Thanks. Two questions, can.

kind us First, active of costs? competitive you How what I in approaching then incremental are How second in environment efficiency. along be are can estimates? consumers? And what on seeing Prop they the that or And you would along passing your inform do? are not to guess on just coming may those the how versus you give you passing update XX the you're just an

have feel continuing are improve. letter do left? Is in the other talked density that there years would Anything an margins or you Or mature factors to share more great. there's You multiple like strong where about give be there regions indicator you might there of opportunity, regional a you us EBITDA could margins? or as sense serve contribution a or could you leading

Prabir Adarkar

Lloyd, maybe I'll take that.

of terms XX costs. the in costs, of vast XX Prop majority the we're the Prop absorbing first, So

it, to prices benefit are we're the first P&L. majority order orders why and tend more. passing consumers, merchants benefit the in them But it about merchants. foremost Those in think you absorbing in vast we're because ultimately of certain to we it's consumers And if to We instances. cost California, in doing keep along if for order low our our

can and the continue consistent manage discipline maintaining is to also extent in we line philosophy overall business top our so, so And with to doing EBITDA. maximize to will. scale the we growth while It

embedded XX currently an that we're QX Prop the I what's this the So as costs XXXX whole we IPO. assumption and degree time guidance at continue have. going to we absorbing had even around second the remember your of for a On active in to that our efficiency, discussion is question

restaurant is prepared continue and quarter-on-quarter There's traffic And grow restaurants. ton both wasted at streets well, a time on is eliminated time but on also at or Our the simply are batches obviously a for that is year, the active on. so product efficiencies product reason the year a efficiency to waiting of a basis. not active work on the goes dispatching into ensuring the that ensuring Dasher because appropriately, that's of

terms active a at at there's but fact So where efficiency have the it about we this good that we've And found ceiling of in saturate feel will don't view continued the in point. not I yet. least are improvements possible,

Lloyd Walmsley

Thank you.

Operator

from comes from question next Jason your Helfstein And Oppenheimer.

Jason Helfstein

I'll ask two.

about more docks yours into whole how driving but end. you storefront? lot there of integrate maybe a Just in are suite the Obviously, your thinking for there's back out SMBs,

kind Is kind cash that do and number pricing bit some then price just about pretty adoption. the jurisdictional of about ways and of -- a that's talk see a using healthy certain way so Thanks. general, that there you kind one, online of in secondly, prices are to just increasing a about kind of behavior are nonchain drive caps And more pushback. prices way and, how legal? to And out manage? or maybe And offset then you permanent maybe awareness there? could I can you get just share restaurants that that fees mean other that the the you're any to talk information how of mechanisms any

Tony Xu

Yes.

question. Jason, of part the first So take I'll the maybe

a It's Storefront. bit over question very So we've right, old integrates to their extremely, little merchants, I systems it grown quickly has months because launch. in that sense on was and some first had extremely as think And you're already a product, Look, it's since a no-brainer the early. do back-of-house Storefront with for is it marketplace. six all of our of a on

of and so flip lots merchants. -- it and with serve the to their proud work that a thousands of wide done, we're works of lot complexity to making on terms serve and operations, and that with there's of of a side, -- businesses, hundreds of in forth. very be but privileged sure variety their things On so reporting comes their requirements also protocols, We

where really Right really horizons the manage phase. now, about how product we think we back We're investment in that's so is to Storefront and allocation. market are. fit how And we capital

so digital trying more in see that more just we're our that such marketplace features merchant's and the it we channel. more create more own can deliver and to And own of to a benefits

Prabir Adarkar

Jason, price caps. on just And your question regarding

As of controls the of XX the third is XX were jurisdictions, end in of at to subject which the up end quarter. from QX, price we

orders had they're Now nature, in tied price with city that these all all based to we've on to officials, and emergency the temporary in-store are dining. related conversations caps are

in-store fees. continue when fees is will of interim, begun long the that to term, expectation In to Remember, consumer order our our controls. related to implementing away. reducing the consumer fall price these incremental caps mantra some price we've the dining it's costs in So resumes, in recoup

-- fee QX, do our once temporary, about drop will terms away caps as in XX impact away. to we'll an caps rate. points of dollar we that price as on And, are million the impact we're long increases those take to revenue, go this so in the similar and time. manage planning over And had $XX basis price caps But of price

I the permanent on because of terms to temporary but it's comment indications regulative of so nature. far, a on all are In conversations price caps, that in that the want hypothetical, don't all based

Jason Helfstein

want separate in-store that if fees? using just about there's pricing for maybe recoup share proportion you of And are to try versus to restaurants online anything to

Prabir Adarkar

Yes.

order Some using in and to inflation recoup fees. menu are restaurants price inflation

the with down in will the impact dining their in-store of is But a as consumer in-store price that's right So far, possible of that that that may dining merchants because again, relatively hopeful channel. forward to delivery actually elasticity, the demand keeping boosts loss and this recognize minimal. it is path we're in-store be consistent fact the prices function resumes, amount price that shut

Jason Helfstein

you. Thank

Operator

next Ralph question from your from William Schackart Blair. And comes

Ralph Schackart

afternoon. Thanks the question. taking for Good

after especially And end EBITDA a what well just so. outcome I fairly or strong about just just can obviously, contemplates with either on off but would coming strong XX, a the end, high drive the XXXX? controls guidance, the you sense follow-up as competitive you First, a tailwinds annual off, us but range as know side. on Prop price give and a between COVID, talked then, Prabir, million the some zero that low or $XXX wide on maybe

side. restaurant particularly being but a about to range. looks talked supply drivers within more add the little a CAC and continue side on You expensive give how bit to for you. the Maybe just your sense Thank your merchants, normal of ability

Prabir Adarkar

outperforming there top To as we're or regarding the Sure. Ralph, level new objective such the is we discipline line. the of or convenience, the outperformance high the guidance, toward really, question end. that verticals, as food first on the to line, products core would so on the on such be due EBITDA the Drive your extent either ensure to business some in guidance in

some we've as us, ahead other pertains opportunities On interesting the got particularly of hand, convenience. to it

having about the year third-party launched after that space, As saw, a you less likely shows is particular us online and than or leader data the in vertical convenience ago. maybe a being as year this

try seeing start EBITDA. we signals top me to the that merchants intent to long we're beat channel. first. merchants inclined to we're And it that then And which maximize as became need side, will end meets to invest it range thresholds, -- on case, business, Drive new delivery managing recent projects, respect toward reminder, scale things, second pandemic, some progress opposed and they question with try about just in line clear COVID an to to growth, with talk EBITDA let and the supply land to a as with Storefront these if and range. to likely inside the we in as your and of the our so end and return incremental as from Again, a including low of other positive the up And we'll

that merchants that delivery pandemic So deliver to that needed to -- the weren't quickly. prior get participating in

saw chart growth. in so on can selection led to terms the continued platform the a available And merchants, see grow. in the the to has we influx you shareholder of in included massive that which selections And that we letter where

on acquire of you've side the sort cities. has been to the had same goes terms of of relatively two cost where Dasher a tale In stable, merchants our

our degree as hand, Regardless of but you in where of expecting. of of realm some of acquire result expected Dashers stable of within of were On offset a all was the been Dashers stimulus that, unemployment, that would to sort the large heightened cost terms to have a one have we influxes by checks.

Ralph Schackart

Great. Thanks.

Operator

of And Lee your next from line the question James Mizuho. comes from

James Lee

taking my for Thanks questions.

that mentioned letter, costs increased the shareholder consumer On XQ. in you guys acquisition

go forward? you're the into second forward So that contract specifically, And talk can trend revenue like Any after rising you maybe channel that you what And or think on want you that well? a very FY to is Thanks. going about well are bit channel particular 'XX? is should you, about trend expecting for we more we well a regions improve? going working as what how expecting advertising, little aggressive? Is maybe thing, that to --

Prabir Adarkar

pay business start manage be our with on to thresholds. question acquisition your To customer clear, Maybe I'll cost. we first back

an in from the simply acquisition the pay resulting to output a so we're hit. CPA And payback that trying to period cost, acquire we order customers that customer

the more profitability, such increase customer that continue LTV gives us through the improved to to our through it CPA. base improved our flexibility extent engagement, increasing so as through of levers And DashPass, we

I able when higher in increasing amounts to share new where attention, our the acquire and and couple gains industry, market continue as fund a the So, our you higher feature to industry-leading share to acquisition joining customers which larger view with we're CAC order needs in then that of a larger customer of future.

So that we're making reinvest our the increase in customer acquisition costs in to the business. are choice profitability a

to at have resulting XXXX the just Prop that we point revenue, XXXX, the question XX cost the XXXX didn't -- fact versus I On for but we that guide from don't incremental counter an again, would exist the most around revenue, in part. to looking

as XX see decrement don't advertising necessarily. business result will to front, the in payback absorb. a channel a cost, we're And We're managing of reference take we the on to XXXX our the that And vast Prop incremental to over so rate one periods. lastly, choosing again, you another majority which of

-- capital flexibly as our long channels regions, hits deploy across will we so And we'll across payback thresholds. it as

James Lee

so Thanks much. Great.

Operator

the your from And next question Bank McGovern of line from comes Michael of America.

Michael McGovern

a a a throughout if level in was guidance. my points about just AOV talk the little kind for maybe of orders return the on in negative color -- AOV on you to normal XXXX down expect basis, five a maybe, XXXX wondering seasonality bit fourth for little versus Thanks expect of if with taking the territory XXXX? like, also you in in quarterly just kind And you for could provide the pre-COVID of quarter, cadence QX? more could to a question. do bump to you maybe stay total trajectory AOV do the With bit I

Prabir Adarkar

Sure.

with is orders orders, includes our the Drive question our orders, So divide not the by AOV remember in order our value to I GOV and clarify total first contained part thing the that is in take AOV, driven on is you GOV. total should the the if Drive first by respect that with compression it but associated fact

you when being in orders. by deceleration an of so that deceleration AOV, portion Drive caused And increasing some is mix see of

make I sure to So clarify want that. I

alone, as over it's of modestly assumption not QX And soon above will question embedded if seasonality, of a our in-store continued the is course the look marketplace a by see They what reversion will of that the course other and a a levels, above be high our resume -- the continued more more. say from is a above around result up but I the a And of expect toward at Second, AOVs that's that relatively vaccine summertime normalizing in as as starting frequencies are propped terms having at obviously, moderation and pre-COVID upside. to pre-COVID customer continued levels. the still order compounded To dining remains onwards, on we'll as pre-COVID then, remain in vaccine get perform your what available so pre-COVID On the that QX factors, the That as and the includes lot traditional the has guidance where levels, consumer we frequency, a broadly into delay was AOVs over since seasonality can restaurants soon. an XXXX. said XXXX. I'd that, going impacted base. well were orders result, in consumers order extent to within reversion just to or out see but behavior we're massively sort of the normalizing of and go behavior you

Michael McGovern

Thanks.

Operator

next is your question Squali from Youssef from And Truist.

Youssef Squali

know evolving? creates not at some harder clients, go certain and to consumers, even a just kind the have at even as unit Is prefer with X-plus you look GOVs, very you're you of XXXX, business? jurisdictions with -- say, point much to are going I see you not wondering, because you for maybe at Two And with much. but me, bring the I which thresholds do take not time since Starting years, then quick internationally. pay friction with you how was a business then over above look potentially just economics so your harder out, per rate of But your to just look just Thank -- beyond, from guiding questions please. it next there to the the se. revenues it restaurants

in your X, be market? to No. I'm talks otherwise, of X. X, of markets a still wanting main I No. think No. just As Canada. in But you interest you your Japan, is they're the about primarily terms at you press can about some can U.S., flesh that market. and on articles where what -- that are know out you an as focus there I X, and look Australia, etc., beyond, not people many the look seeing not in be attractiveness No. competitor

two a you're great. for your So that -- markets the strategy that maybe international the just three be flesh can you would if bit, little Thank out expansion us beyond other around in, you.

Prabir Adarkar

Great.

can -- of equation let lower to you take term, on me merchants fees question think the about and first, then when call trying and international. idea simple that talk Tony we and strategy so is the to waste defect the rates P&L, in is costs efficiency or to solve that That's and help the earnings. customer through increase consumer Dash well sort so lower merchant through when on, Actually, as and the our the to the stage our we'll long Youssef, fees for. the unlock take side rate we're we in commissions on by consumers through in -- whether invest -- active support reducing then that side. that it's as eliminating we way do efficiency And or side, as greater both on merchant

take rate. has that unit As they decline, natural an And consumers. on among than we for keep DashPass deflationary the as adoption increasing side, example, in a consumer up of DashPass, take are on engagement the the increase made rates although impact more

consumers. MAU doesn't user non-DashPass than use somebody of that you dollars revenue total of for DashPass DashPass for versus so dollars DashPass, And gross for be at consumer or look to they per total total tend profit the if do revenue higher

actively we're So, to trade-off. make choosing that

our that more growth. enable but that as we'll it as translate doing only And more fees ultimately growth dollars long the services, have run. additional efficiencies we those provide overtime, it's commissions, continuously merchants we in will reducing continue is growth and sustained into unlock to belief Not will into the because the and as to merchant idea Dasher the and so, products consumer with access adoption reinvest and P&L, increasing of these we earnings TAM so reducing over

Tony Xu

really really view. question the And XXXX international, it's player would States the were second have bit in I upon a we candidly, a otherwise, your we founded on long-term first not in us, company. this United around little as not for launched earlier. the taking Youssef, we when either But touched

do levels of of long-term difference think so for And can all us, on it's view looking for something audiences, what can consumers, really we and unique the bring we and pretty is merchants for areas opportunity I it where of a that Dashers. taking of players penetration that you markets, And large mean, in quite U.S., the there. I these have already it's very frankly, look days. some low pretty in those well, are The the even geographies, early still including existing at if

the us, do it's for will just for I And over think Dasher. always consumer, themselves. speak products merchant and our obsessing So if we that,

Youssef Squali

Thanks.

Operator

Samuel Lourensz from question last our Arete. And line from comes of the

Samuel Lourensz

Hi, thank you for taking the question.

your And talk thresholds? a in So you could the more material envision this in firstly, progression And new you bit secondly, term? business model do testing little about then bring to thinking a little -- about longer excess you're could here, becoming you how the maybe your in verticals, how returns DashMart, with bit talk you can attractive batching? of and order as about Thanks. your if it add

Tony Xu

Yes. at And the experiment on earlier something efficiency, active early What respect about second end very super excited XXXX. I'll I With the been take the days. question that It's, DashPass. an batching. of we've the Prabir about take into let to we're question DashMart on I'll has XXXX since think into again, turned him talked first business. DashMart, invested

consumers. about DashMart, the And and cross and that really has means And existed so if seeing giving think -- our stage for to to it's selection really, right thresholds for investment it's the win-win where before. this merchants input we're Whether certainly it behind merchants metrics not really capital a bringing allocation. you further thesis

it them in they wish. depth in, want or into geographies certain the to bridge they merchants, may the that aren't For but be in opportunity currently to magnitude that gives

other on of retail For serving in selection carry that are. also getting places sauces that them walls had merchants, for through in beyond sell chefs it's where, if an where Caviar. wherever in many to before. and example, also of never it's items, we also is they've a had that's they the for which their they to and for like restaurants now we're mean about Equivalently, I serving Stephanie consumers, of the restaurateurs, others them think We're products you mean, again, four other Izard happening example, they've DoorDash this access like before. bring And never consumers, Chicago, DashMart. an I some categories well selection their extension giving lot as as

Prabir Adarkar

Yes. batch -- Samuel, have batching, consistent relatively since question QX. on your rates last been on for the

of a efficiency, sources And network. the driver that and of so don't from are to only we increases what the want consistent several that logistics is make make There perspective rates I sequential efficiency on, led other sure assume batch ensure course restaurant. progress year. efficiency eliminating the restaurant of are that past we to the product active which better the than active be kitchen the Dasher ready It's spend earlier to so prep food the time of in at doesn't time show and might of in the -- Dasher a a It's up like wasted on. over things predictions that

So beyond batch rates are obviously source for an important -- the resource.

Operator

no in further questions queue. And there are

Tony Xu

Great. Thanks, everyone.

Prabir Adarkar

Thank you.

Operator

Ladies call. you this Thank and concludes today's conference for gentlemen, participating.

disconnect. now may You

DoorDash (DASH) 26 Feb 212020 Q4 Earnings call transcript