DoorDash (DASH) 14 May 212021 Q1 Earnings call transcript

Company Profile

Participants

Andy Hargreaves	Vice President, Finance and IR
Tony Xu	Co-Founder, Chair and CEO
Prabir Adarkar	Chief Financial Officer
Lloyd Walmsley	Deutsche Bank
Douglas Anmuth	J.P. Morgan
Youssef Squali	Truist Securities
Ross Sandler	Barclays
Ralph Schackart	William Blair
Deepak Mathivanan	Wolfe Research
Michael McGovern	Bank of America
Ron Josey	JMP Securities

Call transcript

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Operator

Good day and thank you for standing by. Welcome to the DoorDash Q1 2021 Earnings Call. At this time, all participants are in a 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. to conference like speaker to now Mr. today, would hand over the your I Hargreaves. Andy ahead. go Please

Andy Hargreaves

future Thanks, of And am statements making Hello, CEO, like quarter statements joined Mei. to everyone. including by during Tony XXXX our our us today guidance our and financial that Prabir regarding earnings this first Xu; for remind and results call, call. Adarkar. Chair everyone and forward-looking I Co-founder, pleased business, CFO, be thanks to expectations and for We’d joining be we’ll strategy.

including risks Forward-looking subject described uncertainties are and actual a in statements Form cause forward-looking factors filings, results our differ to such XX-K. those and from risk that described are in our materially could risks statements to including in SEC

rely as as You We any on future events. to statements any except forward-looking statements our of forward-looking disclaim law. predictions obligation update by should required not

available a certain non-GAAP which GAAP results a measures. we be During financial website. results Information our to are non-GAAP found GAAP call, most These in to the to considered in on of should our our is regarding our financial reconciliation comparable directly will measures this GAAP may including results, such discuss addition our Investor investor financial and intended not non-GAAP substitute letter, for measures be Relations be results. non-GAAP

available call ends. webcast be being call this the our Investor our on after Finally, will website, is Relations audio in audio its of call and replay website entirety the on shortly

today. We’re going questions to straight into go

question. please the first Mei, take So,

Operator

line Bank. of Our Lloyd first Walmsley the question Deutsche is from from

open. now is Your line

Lloyd Walmsley

can. if for Thanks I Two question. taking the

and product is on who it categories in more far convenience that. comment just within packages, put finer on increased convenience the question then as if the stuff? that I’m how the similar commission they more top is more the frequency the and even increases offer things use individual platform in cannibalistic? not people the food, other terms of app would dynamics shareholder Are just on more called you across, guess categories? just new first use letter, food where from as habituation of can And there delivery are second can the from of I maybe more just expect existing to that point kind bundles you react value it we Thanks. in to side Are share frequency new out opting is areas that should of and other seeing merchants the in customers And would the order a packages? of in Just just convenience they into you be that Is a you the curious that? or what the where Anything and rate additive impact on great. terms kind take full you be higher

Prabir Adarkar

Lloyd. It’s mentioned, these second. find and Why comment I another. then the you Tony is actually Prabir. thing the with on categories take frequency take one is symbiotic the Hi, latter don’t the we It’s are that first will what which question

selling categories who engagement creating new use versus to you with a categories, than restaurants order amount greater engagement across that And we our their actually do also multiple engage subsequently customers from stronger then who So that and retention once pleased restaurant are restaurants will consumers begin is found of those us other the it. food, categories. different categories increase that new thing all order customers increases pleased. Obviously are definitely, beyond said from your category. restaurant actually core the with frequency To not by with

makes the without of categories because So a we’re stickier basically actually user platform. addition strength, seeing

Tony Xu

Yeah. Hey, Lloyd.

On Tony. the is -- this

tested we The for question. and feel with program, this guidance we that six our as initiatives is about our all new as something merchants it’s we of in second reflected with months. do And business impact the pretty On comfortable.

rollout I of what our guiding meeting a terms far. principles behind so it’s we we design you couple But in weeks of principles thought why or I’d second expectations the announced bit shipped So of ago. the our a to take give a

If you back, entirety was that’s lot took would we quite the local would during that take a founded a businesses why pandemic these businesses be sure sure that successful, DoorDash make of to make succeed. to step the actions the of

took, have the proud investments industry. of very X that in well odds of And the these surviving of versus businesses so made the during the we pandemic average the times to hundreds as as the pandemic, dollars I’m actions we millions in allow restaurant

in And the in covering as on or get how depending of and excited choice very profitability, possible. to heading and rates programs form them start the growth Choice that, the terms as country we the them the over in the the I’m seeing of into the out is reopening, plans price whether of participation X%. and choice use where get which called of the cases pickup are like as like DoorDash app and is from pandemic cost coming they gate offering again of about, slashed greater DashPass, of the cost which owners recovery. channel, choice, speaking well as will of from that, out chance spectrum vaccination we form DoorDash increasing in the like in as things wanted in Now, rates into commission of we DoorDash form business months, orders they getting their where digital wanted where they’re delivery seven that allows we’re Storefront investing their choice to as or about as channels, give own where product own of allow build in higher non delivery XX% they which the to about case, staffing such, no him is free, six we and some these months of pick best for what given we really was, on and heard this, fast can with

And these And six reason in merchants with why all the we had our guidance. so in on on business, reflected about financial terms of been it. was that really working the impact of we to is that what for announced impact we the shift the or and months

Prabir Adarkar

Yeah.

point to if Just in the as one programs, fee, think not offset, look ramifications with lower is you keep perfect commission comes you just a that a actually offset add that the mind but about that, an it’s between at is higher going. consumer these rate there

Lloyd Walmsley

Nice quarter. guys. Thanks, Okay.

Operator

in Next line Douglas is J.P. Morgan. from Anmuth

open. Your line is

Douglas Anmuth

the taking for questions. Thanks

play and guess, in better areas? thoughts comfortable of out in I to six your months just with ago, have about just just some just then given hoping how more of relative some Thanks. that if to better thoughts question, changed here As to with get supply, supply first talk reopening, has? months DoorDash And on it impact do can perhaps, the coming other deal issues, ridesharing of the how you to course, second

Prabir Adarkar

question. Doug. Hey, the Thanks for

the first that beat initially the What’s consumer guidance earlier anticipated we is were being I’ll first trends sticky. at markets earnings -- actually the X%. we in QX is, to made at and to even about our say enabled the our consumer by grew, than call saw in-store negative driving was the talked that commentary that we encouraged we us behavior by impact quarter, So the dining behavior we thing smaller as reopened and particularly

to product, and better of begin course habits the tend time. as that’s the the of that develop So the persist been routinely product to by consumers use has and over habits new those bolstered par fact gotten

restaurants, this year, of support quality better. is course all number categories, these of the continue past the adapt terms which over continued Just in selection new has And the things platforms improved, affordability to stores is grocery well convenience as go. consumers as improve far of stickiness as our and as and the the on gotten stores,

people optimistic the about On to as which second XX% so they is a don’t full the less guidance X balance dash can pool on GOV. are to I they hours to different increase the of Dashers billion year, focused But Dashers. we important an $XX bikes. question, a look drivers know led require Dashers this. time XX% week. billion average per it’s a part jobs other or dash Over remember or And that car, than students about our your to of of of rideshare rideshare to by time on we’re on of $XX are future, than

Dashers to you Our individual. population because that’s have of personal tend another space skew female your likely more and share to with don’t

building that of XX% so our not say Dashers X% rideshare our rideshare. survey they And and for prefer only data in shows even

completely more of took pool little March So we’re We were our marketing acted issue. expanded and of actions improving than of conversion per We that Dashers logistics bit will for we week result the improving the network, We solve a acquiring supply Dashers one. the rates in efficiency bunch had a the a different including people. funnels, our quickly. the blip of now competitive

while the and that to be future. the supplies for So foreseeable case expect today

Douglas Anmuth

Thank you, Prabir.

Operator

Next is from Securities. Squali Youssef Truist

is Your line open. now

Youssef Squali

on you congrats quarter. the impressive Thank very and much Great.

if Just two I may.

broader, coming recent into highlight First, seen was new I the -- a speaks the the impacting wondering embarking scenario in to Is trends that know how you. to but I delivery see grocery, in could how business of big diversification second, your as speak years time? the Thank contribution speak you non-food can quarter you probably, of take et over if the intensity anything could just growth where in you about don’t over the just years, rates But to well, half it? And competitive become convenience, that over feel non-food, you’re particularly you at just guys that do can to situation look you’ve business the just terms you on time? to and from also May far, say, is next think the in think business cetera. to the see the this three five you where guide so initiatives, it. your a how I and first, you these that

Tony Xu

Tony. start. Sure. I’ll Hey. It’s

I short now orders. progress. really orders our market We is of total muted reopening this launched off even under period the about for we this happened impact XX% in the leader over quarter-on-quarter, we to categories, summer. our convenience, in we’re than a far of non-restaurant is looking expected. of this some were been excited of prepare great I’ll we’re that, And With year. towards outside what our new Certainly, at even And totaling a has our again, growing mean, in now last starting X% just a So to category more really fall as quarter which earnest very the in of the respect when and to time. restaurants start. last second we’re pretty say

respect earnings With and there. So I broader to our things expectations this us to are during certainly exceeding of remind plays plan and areas. -- how unfolds, I call, out actually mentioned, call, very of think first on ahead the really as our in we’re investing four of the our question as all

certainly, record leader now engagement We’re saw into to cases, or the core investing, especially office where business, there, in the use like Work. our well we’re business strength we pick for DoorDash we’re other as grow also investment and seeing up, such as as market our as, greater quarter, the

We categories. are investing into new certainly

channels, merchants out marketplace as also market products that that build Drive, platform or of like your is then DoorDash investing own DoorDash platform much a our build help you DoorDash a orders, as grows growth. their the We’re as finally, so international gives Storefront into well and to app

for And future. where investing. what these both we’re all as four the excited how And that are in buckets well we’re very, by those areas, diversification are as very in mean progressing so of might the things

Prabir Adarkar

-- just $XXX And billion whether extremely convenience success rates to if in that’s to of unique convenience I you just months billion, of up in low trillion that’s because X-Eleven, in of our underserved it’s Youssef, despite CVS, third-party But can markets, very launching and it’s platform could $XXX billion convenience $XXX grocery, I is to we’re XX markets large partners these an grocery we is choice and the mean, like Because that enjoying these platform. business thing that and both mentioned, and some our first-party point, or like that, add this the extensibility them take market. thank But to are the we’re penetration a not like fact, and our approach marketplace of you have a own ago, we is about hybrid that Rite think also our together, that you consumers announced. provide Walgreens, the Aid recently selection order consumers bringing in in neighborhoods. serve pairs

low lot And runway so and growth. a for today penetration extremely there’s of

Operator

from from Ross the of line Sandler is question Barclays. Next

Your line now is open.

Ross Sandler

guys. Hey,

one last on and Just other then a quick one our follow-up one.

that of about your got-to-market orders is pool its and X% getting is business. Gopuff I the for unit can ads. profit talk you of So the Instacart business economics mostly a key non-restaurant, think like one from

order to you are and then it EBITDA think for going a question per do seeing customers the at think it drop off as which per past the who the came are we a or I’m those would like, that going higher data summer, guys that I a little color Dash bit helpful in ones like when be on convenience, XXXX Any you have new to order. that and as the the look So last, there are about would lower the everybody Thanks offering how And is is be reopen, month. like more understand blended drop is order the X think totally you on that guys. we can sounds that based things times you in guys get on frequency you order, summer. off of letter an the into folks that expecting bit just I little color helpful? a mentioned any EBITDA

Prabir Adarkar

of economics, What the that business we’re even the I these the expanding. we’re we’re in of first unit storefront core in with where like verticals new it grow fortunate as taking community is or its say orders. is as services actually out our to new investing expand cash terms to on breaking into will economics cash and some we’re and generative merchant So U.S. question not well with that

have So we’re to profitable core us business a variance. that invest to fortunate allows in

consistent all the is about into way we generally question later in to through across the the and have summer April bit the as the see starting trajectory go guidance consumers behavior weather been be weather seasonality improves, go going well acquired people customers as could improves to the that is we black both day usually behavior It that tend fact recently and that reticles On little new out that customers more. regarding while. the the we that to want existing as for dining baked a just see in and as a

if in it customer level of numbers partly cohort So it there because for the you on of pace at existing look you you don’t both it’s a see historical our rapid cohorts. acquisition. But and

Operator

is Next Ralph Schackart from William Blair.

open. Your line is now

Ralph Schackart

afternoon you’re you a taking is just period. Dash decrease if talked supply think thanks of the like on and over pay XX% now color incentive for both more low quarter, Good I’m It and and sounds for maybe seen maybe XX% the you’ve that the provide of in cost I little about curious kind quarter-to-date, two trends year increase in consumers could on question. which better situation great. pay

and consumer color on then over some driver think could you of time? subside. and give some you. the kind incentive then as more passed of that’s are programs getting you government the will Do curious incentives on normalize if signups Thank Just eventually recent trends

Prabir Adarkar

earnings is be actually maybe Dash summary will back resolved back earnings and context is because our year by improve customer be Yes, should step XX% better merchants part QX said take fees reduce just that our has reduce that philosophy. -- consumer we’re rates I’ll state before, will per in market the is take drive Staris with the in and from so to health. QX normalize terms sequentially supply North and question. increased driven Dash problem of the commissions Taking in Dash overall Dash in strategy, prices, consistent the expecting and and prices, to the over of increase overall just hour, and to in -- been that’s a The fact to will we’ve the should per be to general active to

a squeeze that economic as logistics by that the Dash unit of back to efficiency So be lot increasing ecosystem by owners. network, continue results and we as we to continue by improve invest down into out we fees and in taking improvements of out fact the more

Ralph Schackart

about opportunity, And Maybe it if and about post-COVID pickup for the Great. are I this on more. sort your can under a opportunity And of on you. just and by how just seems that’s talk consumers could environment. been we’ve What as Thank you to opportunity? call received sort some innovation. pretty of you learned good squeeze had what long-term later technology that one you views the talked of

Tony Xu

Tony. it’s that, take I’ll Sure,

doing XX week, is is to think someone or during that it’s business method, of greatest never I it’s when that to maybe that eating this kind of have privilege cooking, all it’s but people say be a in deliveries. what to in this out less eats will never XX in pandemic, probably going getting I happen in the one to be more, in is going going times eating or maybe frequency consumption, we never all

a governs stuck the people so excitement of to is and the just there I of pick continue pandemic, lot and have back the I I excited we’re coffee so think get But this home. that a or snack are grabbing think you mere products, often a along cases tired very on that colleagues not we think of to behavior quite by of I because think grabbing natural your investing use fact our consume to a of being especially just at the because there. is block one doing and to as a the that going to some with what or are a now we the walk out priced so work go seeing doing things we’re we’re way commodities

Ralph Schackart

thanks and Prabir. Tony Great,

Operator

Wolfe Next is Deepak from Mathivanan Research.

open. now is line Your

Deepak Mathivanan

guys. the entered to desire Prabir. integrations about offline business expanding think and shop on merchant’s companies for taking categories? lot software One about kind marketplace follow-up companies, as with but mean you you like for the for systems, with Facebook one even it partnership you’ve Can strategy to [inaudible] like and retailers of sale directly, How of both next side have your years. for thanks the rapidly into is about the new should online work a we that platforms drive? few question your partnership further Tony presence Great, over I think and of the scale point talk

Tony Xu

I’ll Yes, it’s Tony. Hi, Deepak, start.

all for the best that to how really to own to successful we’re digital perform be way before to them our all and that tools things build their to selection, products look marketplace how that allow across platform they and do business the activities is So the we about we price digital we have It’s means best merchants we do and is really the where quality for allow building grow at customer service build our in with offer them how businesses. business. a order very do

as the on that they components. marketplace and system our not with that app inside building side, and grow your we they those in is we that years. our two then and the merchants all the replicate hours different DoorDash, so guiding job fit And on and which power top on do achieve are all any your the whether days. And and grow that, to commerce you trying would not of not is local at and to really for trying the is business can empower so other minutes we or or means to commerce into partnerships neighborhoods I platform, are which bring the about suppose One, local four-wall of grow thinking into or we principle, fit both everything they whether has system depending look our consider or

Deepak Mathivanan

it. Got

half? then Should How the second helpful the into Tony, Now can and XQ are like that’s you much. about to that Prabir, we you about the Thank XQ GOV. improving expect start half guidance XXXX. GOV out in slope second thinking sequentially very you in talk and in so it on bottom

Prabir Adarkar

Yes, has two half GOV the second by factors. impacted

it respect consumer from to then second start continues and is with there QX notes we’re baking to continue increase until [inaudible]. is rates, as in even to region see there setting start the some And Labor that your season as Day some QX uncertainty markets of behavior growth to vaccination in first we to in The and but seasonality, right winter you’ve reopen now. point, got

you thing beginning than is the what The Deepak this will one we the guidance it’s out. I at just higher the year. thought GOV So year say the stepping for materially of pointed back is what

you to today earlier than picture, which that you So shape right at novel is anything were more I’d curve may feeling point cited were the the the see but a you on. optimistic of big we

Deepak Mathivanan

Got very guys. Thanks helpful. it. That’s

Operator

McGovern from Next is Michael Bank America. of

is line now open. Your

Michael McGovern

Great, I congrats wanted news -- on thanks items like just and It regulatory maybe overview. been for like a maybe ask taking the recently. there’s to of a quarter. the my about seems question side just on great lot regulatory

then think the have gig of federal side? what if side with about deals the any potentially long-term look your could on I and comments maybe XX. economy on So, and the in similar about peers Labor first space might could Secretary views recently working the happen to out that states Department federal the talked from in you Prop of rideshare just And some comment

us with regulatory on share about the kinds state in you. are you’re developments as discussions participating of those potential side think you can what the So well? Thank if you for just

Tony Xu

it’s I’ll Yes, that. hey, Tony. take Mike,

which What private DoorDash the I very that I worker. a and construct two instead companies think for how XXst say about optimizing years excited for us us into or takes actually stands excited sector out heard Walsh and is guess century buying if XXth of the with that moving the we’re So the backwards you mean it. century. model about administration very what figuring the we they’re Secretary to was with

that existed deserve case labor before, they labor true anyone our they protections this and And how that independence is heard hear marry number level, environment that that’s So platform. the and from that willingness we do with engage construct drivers we millions never we the the one flexibility and Dashers is definitions on state traditional third with. in of Dasher, any what believe question the can thing has that with two benefits true that’s official and our in in in to face want at this the over to this federal flexibility and that level, any and the from conversation in we really way we at we benefits forward which is and a compare and elected the we stick again speak

Prabir Adarkar

And Mike, this to be dialog, which to level. in clear, the deal we and the clear in that from we we said we’re with aren’t comes government taking immediate want action state give

Michael McGovern

especially just rideshare the Got quick prior to between the side. thought drivers about and it. follow-up one important, I Dashers Maybe regulatory that. were really the difference comments on

So development? that delivery regulated response different you food like gig talk lumped like in separately of and together could are could about of that couriers possibility in or do economy the you rideshare regulatory long-term that all with workers think terms be just drivers rules kind just

Prabir Adarkar

out, this with Yes, as I’m matter. sector Walsh’s figure our economy or so engage that there’s good the full actually signal we’ll rideshare we on an if broader to we’ve early mean, comment drivers suggest topic I stuff progressed. sure Tony not together come conversations to whether with Secretary on a any this openness the as could private little it’s got support, this a back confusion update gig to the in indicated

Michael McGovern

so it. Thanks much. Got

Operator

Co. Oppenheimer & from Helfstein Next is Jason

line open. is Your

Unidentified Analyst

call Shawn the is on This for [ph] Jason. Thanks.

pricing there? is are and competitive. at are less you you the competitive about environment same, the you how local you. And non-food does good So this around account the can with competitive, on cash through take to guys talk around merchant relative about the risk What more thinking sales doing the new one just pricing second, model? into guys deliveries then environment Thank how

Tony Xu

Yes. it’s Tony. Hi, Shawn, I’ll start.

make to we’re commission first caps and rolling Chicago, is job off we’re I the really very earlier what allowing roll off in some even allow what Cincinnati, question some seen in soon large everyone like elected of that which be and excited City, already that’s and go so have, think is work the more saw and all commission to its and we’ve very audiences inside to augmented more occur moving will lots back as -- and to be DoorDash forward. of for folk reopenings portfolio think one do people the at businesses as we’re I folks things they week to of that think these see first delivery capitalism these to this and to and of restaurants, continues around we I pretty physical will way an encouraged Kansas seeing caps will business grow help how as be expect part some this officials happen cities on So by the do I fact

that competitive is exceeded respect I and with you to the our about would environment expectations. think which these I think things some the second say I question certainly around asked of newer categories. mean, I look,

ago fact and about convenience started our year the year’s market time, a just a at the non-restaurant we If in category. first you that leader that in become in category look we’ve

how receptivity see strengths at the actually have the day, jobs how at types hours of just different solve will both different week on categories every comes are frequencies demand across I consumers different The the really do access audience of of across to that how like willing help to times of the and merchants month. Dashers to to willing to food to think largest show highest our and us audiences. different platform deliveries different the all

the the these restaurant the But to less in for business of mean XX% earlier to progress had or even we massive quite of we the unfolding. of And a just an us you earlier even largest points question, the sales of up Prabir added beginning in the all remind restaurant industry. lot I are or far seeing core transformation so if entire U.S. a areas. to about that’s just platforms of all in

same some single-digits. for the and very very, you we’re that is categories entering small of math grocery via If very, these did other number that convenience others

there so is massive runway ahead. And a

Operator

Ron the from is question Securities. of JMP Josey Next from line

open. line Your is

Ron Josey

users I than in year-over-year wanted to answer, together. prior And I is in of the joining new about the quarter. consumer for XQ you more here somewhat order DashPass longer the reopening about on to about frequency really and the reopening the a was of food all-time thanks be we of categories as behavior to categories, you see subscribers for reopening you be question might talked taking order can DashPass, then, actually just as of great and are both a you more it thinking how and think new in could you. restaurant but are working Great, categories online ask new Tony with this cetera that MAUs how one just but penetration average amount increasing is this Thank record, the how consumers think -- tailwind? on you’re that the strategic new DashPass might high and a et term and change doubled actually question your please maybe, two how increasing things mentioned the about and as talk nature specifically you an follow-up weird you help about maybe

Prabir Adarkar

price deliver fees its differs the introduced as think selection. is as pillar the digital of consumers the so affordability consumers the grow at have you to quality in one, be of cost the refining orders to will ups proposition are do into industries into that start both orders this out derive allowed selection continue seeing until of the and particularly number delivery DashPass Ron, multiple fact value superior wider the another on of to heart a of the DashPass to services what sign that and multiple be Xx us aspect end our first multiple DashPass could been as a verticals deliveries translating engagement take to Prabir DashPass fee to their to was value $XX of we the and DashPass. the and DashPass is ago strategy adding know should well we right the because about the subscription consumers, increasing year the The best and we’re the Tony will and going strategy for second. the core day take ability and of

So That’s that with over DashPass then multiple consume proposition. time way DashPass Food much vision continue to consumer we’ve see our the products Prime to stores improve the Amazon as across categories. value into convenience get Starwood time, you same added the for categories and allows we to slotted and

Tony Xu

categories towards the and Yes, was. happening and be as of of say to would what think that to discussion tailwind just perspective convenience be type to shape is greater other this would comfortable and the to some power which is people otherwise that by from I that was allowed respect the in the that I this and the over always it time who going how the think faster a what when I the to question we has into long-term you occurs, all more it reopening how kind is guess, that terms has of suppose, but I recovery knows slope that second possible all one happens, the that it’s period it of possibly happen the with the direction as move of which shifted around tailwind. is the of of thesis that’s with earlier I allowed commerce business, we’ve long-term more more look crystal allows means example. for convenience, that comes ball things trend growth some of change local more no entry if It in at and

a mean just kind convenience. And to we’re to wanted want of where in do think to remind that thinking takeout delivery we’re seeing I I and convenience the they’re go so that’s they if moves go never inside people probably restaurant direction the example, about I in about of if restaurant thinking eat was of or inside first better going someone Conversely, the delivery. not probably they’re but it, for instance. only

privilege have the see into of XX XX do time I the is and greatest some And always moments was it’s times where slightly we’re step think to we again. to like what a people is in so convenience. like and longer we to trying out horizon that more week We to question growing that very think difficult take I yes. back answer seems here share figure a eat a believe

Ron Josey

you Thank guys. helpful. That’s

Operator

from Spencer [ph] Tan our next We have from Evercore ISI. question

Your line is open.

Unidentified Analyst

thanks taking for question. my Hi,

guidance. question one around Just, I think

like guidance accretion looks to midpoint you it if that prior take quarters. So guiding GOV to EBITDA you’re versus and the were of EBITDA your

recovery. you service how any about they a storefront that specifically. the more seeing a should guess, Just that your offering do has And that software wondering advantage structure some the gain restaurants a I utilize platforms and quarter from competitive from and secondarily, that that’s from think if by consolidate change think we types maybe looking there share direct little some out of of smaller comps? you then i.e., bit just providing commission color other little of Are a the as ability and Thank announced you. into this maybe that competitors that. Maybe you around versus a the bit DoorDash the more having to standpoint

Prabir Adarkar

[inaudible] margins is I answer that to of do the picking if question correctly GOV there… with slightly, So the EBITDA the up

Unidentified Analyst

Yes, got you.

Prabir Adarkar

The compared do reason day don’t flows. line money but right say a our is and to compelled to invest in range prior the to for guidance I’d If try the scale expanding to you all find available it’s opportunity top manage reiterate want if be that cash to the spend provided to will the we EBITDA, don’t beat to term to What We long. we order maximize the quarter. the just have quarter. the in of we extent way that feel business, the to so would

increase normal. allows peak accretion sequential expecting in investment is is the slight the margin And right this bottom to in side so the supply do and us opportunities because that what that event is in the the line we’re that that to QX rate of you because drive see the to profitability

Tony Xu

it. Got

so where stemming it’d a Yes, times source And business cases be consumer we’re where us platform Okay. power But course, the respect our with that office the to and only XX I ordered we also space take piece fact a to week and question, mentioning we’re you we delivery addressable greater perspective, then from deliveries more merchants to of thanks. of by was their are that serve with gives we’re the bigger but the incremental instance products, the in that XX a market people up in from used of their the largest up app. having pick wider their is earlier majority own serving regard. kitchen demand on through not by can that whether having channels certainly so. which more first the of And use food cases, fulfillment do believe entity, a it the portfolio as produce we costs, at lower also both second that allows capacity greater as use time, respect this up to the being powering us drives and to powered yes,

powering or grow take wide us at program in or extra of work are a more the I DashPass. largest of demand products but either the fact think we’re And giving with both just delivery those are earlier of that all also merchant channels terms some the no a categories lot our of charge source their adding things capacity. which of some merchants the as suite generating that said where app choose value production like into competitive ways as for certainly the the to allows we’re then more to consumer beyond through portfolio more in we on side, advantage of their well of products incremental more,

Unidentified Analyst

and Got it. the much on so you congrats Thank quarter.

Operator

line from from Next [ph] question the Linton BTIG. Clara of is

line now is Your open.

Unidentified Analyst

and evening. versus up entry weighing good that? I M&A some specifically sort revisit, also guys options are thinking to that’s speculation on see Tony does for could you why doing about how you. buy recently, new both or wanted build we if come Hi, up Thank Prabir somewhat and market of

Tony Xu

opportunities mean said M&A We one of we is is organically the can look, these operate us. outside it and is we in look Yes, global that to expand fortunate in horizon, Australia. out it But right high, it consider. invest in at now complicated doesn’t got frankly, goes the is nation. that to be just sense we’re all the as M&A the extent, that time U.S., previously company the makes core M&A And I as long And a the cash and might we difficult. in is bar something aspiration and a we that say a build generates matter the extremely we’ve given to over business Canada I’d around our to U.S. regions, To getting of Italy. what build will we’ve over of go far

will So on is mechanisms. unless we absolute usually we’ve conviction that right got inorganic tool, rely M&A

Operator

turn I No further time. the at Andy to over Mr. this back questions call Hargreaves.

Andy Hargreaves

months. the thank talk evening for for Have today. and joining thank or everybody you Bye. to questions a Perfect, a you afternoon great you again and we’ll us in few

Operator

today’s call. conference concludes This

You disconnect may now

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