DoorDash (DASH) 6 May 222022 Q1 Earnings call transcript

Company Profile

Participants

Andy Hargreaves	VP, IR
Tony Xu	Co-Founder, Chair and CEO
Prabir Adarkar	CFO
Ross Sandler	Barclays
Youssef Squali	Truist Securities
Steven Fox	Fox Advisors
Lloyd Walmsley	UBS
Doug Anmuth	JPMorgan
Michael McGovern	Bank of America
Deepak Mathivanan	Wolfe
Brian Nowak	Morgan Stanley
Ronald Josey	Citi
Andrew Boone	JMP Securities
Eric Sheridan	Goldman Sachs
Mark Mahaney	Evercore ISI
Brian Fitzgerald	Wells Fargo

Call transcript

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Andy Hargreaves

Good afternoon and thanks for joining us for our First Quarter 2022 Earnings Call. I'm pleased to be joined today by Co-Founder, Chair and CEO, Tony Xu; and CFO, Prabir Adarkar. We'd like to remind everyone that we'll be making forward-looking statements during this call, including our expectations of our business, financial position, operating performance, future results and guidance, our investment approach, strategy and statements regarding our acquisition of Wolt.

Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those described in forward-looking statements and some such risks are described in our risk factors included in our SEC filings, including Form 10-Ks and 10-Qs.

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

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

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

quarters, previous in into we'll As the Q&A portion. go straight

that, please operator, first the with question. So, take

Operator

first [Operator of from Sandler question line the comes Instructions] from Your Ross Barclays.

Your line is open.

Ross Sandler

one near-term. one and had high Hi, level Tony, more I then Prabir. just

worried the And little you the can closes the to across more profit U.S. which by a philosophy like laid how So I you're and areas new have think those restaurant a are precision. profit on I really going Europe. up, holds some from you line areas that all around proceeds reinvest in out pools just letter, with here investing these philosophy lot that pools into Wolt the folks of after

overall of first problems or having an about expect the on you inflation out just Thanks you're cost second lot. and fuel and should either per maybe Dasher issue. the looking take that So like the any all can in change quarter supply a seem from rate, looks no just how there inflation But commentary the And on might margin revenue doesn't we ahead? to then talk kind it post-Wolt? philosophy question noticeable navigating based anything is be on changes order

Tony Xu

I'll take and second take Prabir the Tony. I'll one. Hi, one first let the it's Ross,

would one, So well, on I say parts. first two the

general. investment just strategy is Wolt, First secondly in just and with philosophy then our our investment

the to commerce each build we that bringing businesses to want the local and giving business the where philosophy want they digital so that Our our largest commerce do aspiration of global, the neighborhood inside that powerhouses that's Wolt because everything up their building share marketplace perspective, the you else. tools in we're want to excited can how build terms why a about local and commerce is largest build going built to to We commerce and become platform take And we also same that with we're we're build largest assets. own to vision the business local investment from to with two where physical we've really it's similar well. global as to local they truly teaming really everything

new the in we built and kind outline a So first in by the retention letter, investments business that frequency. always an how last build start we example possible of terms years gave product of of the how the making from in effectively scratch couple in of sure we shareholder especially best order measure convenience category we

considering math we to unit economics the the to then We to on have a get work, efficient that maniacal scale and start focus unit business. actually ways

industry in restaurants sales. I even X% be disciplined think businesses. be team And in we're look about we these We So going you think scale opportunity with in of as to no up the we if outcomes, run experiments we as the leader to this opportunity total the achieve about how are those able while to immense. obviously different about category, input how we globally, these Wolt. think very it's aggressive to how the market we're U.S. the is only to at opportunity mean restaurant

on And add we unnoticeable that on countries combined best-in-class an the digitization power but or early remains the portfolio products retail Drive merchants if about these We're which almost that's on then of happening extend same, we're a you the through convenience as now maniacal that -- a if of Storefront, into a getting like apps laser websites investment to and countries, many DoorDash Wolt, on the XX in categories which of there with globally. of themselves, other on so us gets If philosophy percentage. significantly If restaurants we you on the building and actually focus positive scale even add top that's the products, before or then products. in unit well top where focus that combine you smaller is percentage. map adds as we're on ascendings we and maniacal of other sharp the

Prabir Adarkar

Ross. to I to And before on the move question. second add to of Hey, that Yes. part just point your

we If that things we you recall, Wolt, the when excited of unit announced retention. were the economics was and the one about

what engine why materially that's had would was which but deployed till EBITDA more invest after we can our engine, efficient the be for Wolt, through expect gives to internationally Wolt year is because have now actually we're a essentially even that So we capital more we we efficient. integrating the expectations unchanged communicated Wolt which us and redeploying

crux the question. So your of that hopefully gets to

shortages not supply we On position experienced good have supply our and feel the looking question, ahead. we about supply

share you. Some with stats to

can base began we that a course year, investing where as to fiscal as as GOV last you undersupply we as we were of weather and percentage lower a to due well of anticipated. as well frankly demand quarter year will had over QX, -- last as the were this as recall quarter-on-quarter we build well both be bad Recall stimulus costs continue year-on-year. address in Dasher the supply if Our to

little second point bit is of this a nuanced one. and The a

and is because in see Our batch rates we both batch go undersupply, year-on-year ourselves some point find you rates are quarter-on-quarter that down to is occasions, my this up. if and may

make then to acquire year a last or is than And were of a fact, we even I'll lower cost had Dashers. rates ago matter quarter. batch As our point new last we actually today the

to our the it's is acquire Dashers So cost the quarters. in four been renewed lowest last

invest supply not because to for just rideshare people. with really don't standpoint because that This demand pool say, in we compete but from this all good is So we in address Dashers. to different a of we advance, a order completely feel

Andy Hargreaves

question. next Operator,

Operator

from next Youssef Truist Squali question from Your Securities. comes

Your line is open.

Youssef Squali

Great. Thank you very much. guys. Hi

think. maybe So footprint, Just just how a geographic me. just could you talk couple maybe that cetera, I haven't One, talk you talked considering letter, tracking business percentage into growth? to own U.S. can how how and GOV been yet, to And Tony, of your guys continue has opportunity but about contribution on you margin questions about marketplace war given of has you know from relative as Wolt marketplace, their about, cetera, the it headwinds, increase see et you the in performed? just then et closed the in I a

higher overtime, need Just think just get initiatives through, how you're next much over -- these all that that you invest the can over these in money in as you've help us year the as you. say Thank two -- to you new or you can keep letter? highlighted

Prabir Adarkar

Thanks for question, the Youssef.

is second street more good specific. the on to deal Wolt's specifically, is performance the closed connection on the provide of deal Wolt come but the transaction, closing in close track question the We comment in with quarter. to we'll So the detail the can't on before on back

stay So, that. for tuned

actually restaurant in U.S. U.S. to margins, driven haven't business, me do to let that reason both. your which terms, future, looking other, question margins that's growth. we is into on in in is the share, multiple business or the progress the available disclosed which And important we've growing because And categories the contribution U.S. easy sort that your increasing exact there's contribution grow outdoor one restaurant on the question thing, those made but margins of hurting without answer it doing is either have to so the is Now, in there. first qualitative margin try remarkable continue levers are category we while growing the

help U.S. continue network, that the in we margin efficiency of structure logistics as First, up, drive our to will the the

as with margin which customer the of of structure. as then support well costs as is that refunds. Second, help the as as improving delivery of experience, the marketing finally, quality parts we certain in will the sales continue well leverage will cost help single there And

as scales, structure. this tailwind an to the is ads beyond margin incremental this Now our business

So still grow grow and category will business business. U.S these Because running come and the not in fund share. core things -- margins is for harvest business build of together restaurant in but U.S. not We're investing margins. other restaurants U.S. all order the restaurant to reinvestment U.S. scale things, help -- to just the in objective restaurant continue our to to that the we're in

Operator

Advisors. of Steven question next the Your line Fox Fox comes from from

Your open. line is

Steven Fox

other of contrast -- sort talk unit categories U.S. convenience economic ideal these sort you into. good and some Thank on I scale? you're categories business you. maybe how could of as was unit at of some new since those wondering, be reach just economic Hi, the you using maybe restaurants as different Can the of changes a compare curves some baseline, looking the and the afternoon. you going mentioned and

Prabir Adarkar

comparing with that an the fact apples-to-apples so of remarkable. years. to in got business is Yes. matter I of to mean we breakeven that economics the in convenience two sight to years, a one that it's of matter a space two are need we've driving unit time, compare these to continue in to margin. pair -- two-year-old the that that to it's as given this will this convenience thing Say are of we remember XX-year, And XP in do those like and up you kind have number hard a line well. introduce is just quite you Over

gets time sort the the in from So to future, of in where to margins. more of margin our business, and now on speak, us U.S. breakeven and hit got and maturity are stage. Today, margin so comes I a the start areas forecast we'll you walk they continue to, to the the areas. to see then we're so over vast because restaurant right consumers, driving generate to your these the at but provide structure lot a We're want majority don't margin profits and as more other getting

Operator

question Your next Walmsley from from line Lloyd UBS. comes the of

open is line Your

Lloyd Walmsley

have two. I Great.

half. could unit year in you contextualize to driving actually help so? the is kind what you you In flip profit second or sticking Can you're that one this be the you shifting a causing generate variable you just you economic were there slowing last to Wolt? us And to the in hiring positive seeing flip just share a looking contribution talk is profit over reports accurate? big second in DoorDash the this about about recently. at priorities slow to some Thanks. what question. And there maybe hiring of see First what Can convenience Anything then Is of ahead the second letter, variable -- the and would half. talked great. press that about or

Prabir Adarkar

can Lloyd, take I'll the the first and Tony take second, maybe Lloyd.

the we for it by how COVID. completely -- you compared on when But were sale around it we we for, is what got amplified and those was knew So demand appreciate restaurant. what and category, this question that have to didn't further right, different the convenience, remember is unique XP started exactly searching a because to saw consumers demand we

that's the profitability. to the side so we is been going we've on the And turn as now learning that curve and curve other

at to like understand be to pick the are sizes We we how pack. into basket do store guide Dasher stores So inside the simple the they Dashers need lower. the way when store. The positions a our need to and inventory to things different go tend and

work lower to product because actually focus where it around it us products is to picking execution basket and and that operational sizes to the to shown focus muscle this with in have the looked restaurants make requirement. math and So unique take order really packing this allowed the and problem create our even

So that's what say. I'd

we super as suddenly in unit by Now old. lot other more things sales it's economics, for well of attach do including we're drive way early there advertising XX years up given the to terms only that is as a can up the cart and the

Tony Xu

Yes.

talking moving a be and profitability that I'd also line a product of building philosophy other thing on was context terms were On over, and that I build I which immense question, hundreds not globally. rates, believe it's very you're only like be bottom important has just, before into in of of lot moves we using and built hiring I the or parallel let the that to trillion-dollar catalog thing it's at items a new our of that the either Prabir maybe the of I front. item tens both customers not able move been read of teams To be in and of grocery, hiring you billions on something bit -- unit very per a investment with very huge to And about hiring Canada the team item it's of our before testament add all think how the because store you've than top just the in able on long the careful convenience again, instead economics. to the a accurate. and when would better in because fact context by they based reported. Lloyd rebuilt at the this. It's to mean of realize, just is I that the the opportunity hiring, store hundreds things a experience think think I what take would runway actually is more team were of aggressive I we think or of little first But dollars very similar. just how in do about first what talk a opportunity of of to of the guess is multiples got in it's thousands impressed that there's inside in in work has based about a -- experience. say terms a probably in still an search based, We're said that me restaurant it's I they top did of things a hundreds then and is, general, thousands, making items especially

process fact the and business. enabled the of six business. you of the years or peers. from that have of the lot this came we It inventing of history first a of disciplined how really the I in way from we of some fraction came the of we a If where early efficient X.X and sort how look at scaling of our in on financing a mean, for constraints perhaps we DoorDash business, the maybe had continuous to had of

I there subsidies. on the product, gain and would right increase ability so discounts the a And We service by had customer is lot that our All-time active retention, unnatural in huge to we've doing users customers our highs deliveries, our back things invent spend shareholder monthly of our quality restaurants. hire these doing and of returning of yielded teams is the and or is all-time more programs inside highs in by cohorts. that the not highs led spend that but improve all-time on order and win experience what which even has hurt across no support. finally form way subscriber to in now or marketing to things DashPass frequency and are superior things by other that customer DashPass building a value anything all in thankfully of industry-leading the letter, selection, as have would offer base, us that the would numbers improve profitability think And our the some shown

been scale built. the well has as efficiencies business that's best really building from as operations the how the product marketing, from and economies So gaining

built just that when of Now aggressively, towards a we -- invest category has investment also systems I same for one hire it we've systems it apply in be something can how be hiring, philosophy can't like that reapply designed to to And categories, most having or and to best P&L. give D, customer how a F. into building of actually lot, these make system we efficient all of the towards the and that experience ways architect E C, leverage B, us

Operator

question line of Your Anmuth the comes next Doug from JPMorgan. from

open. is line Your

Doug Anmuth

taking for two. Thanks questions. I the have

utilized way second, framing Rewards they could maybe how was Dashers talk DoorDash? inflationary Dash interact kind about response I hoping you? way seen about commentary the Program whether to changing of also, and with partners talk the First, Thank of then you much restaurant just any the could are costing you. from your And you that's pressures by

Prabir Adarkar

here. start the I'll first maybe Doug, with

obviously average order to positive have the and so on experiencing of result pass slightly we margins. as being We large as benefit a food. that all else impact our merchants our a increases -- increased they're this on values And that also portion price Our of well, of have inflation. they in cost the given the would equal,

thing now, I'll chicken the prices is, is reality cost year and inflation a one we've Now the over the other for seen right, say things. food

It do look have tell hard we to of step exactly the in gotten selection, highs. in and affordability inflation have said time. and because and an all-time your and Having specifically at in members fact sector it's so that add then sorry, of you users in usage we the all increasing of don't product to are frequency better to you engagement results Tony, that? the DashPass -- and terms fact that, quarter, highs volume on that to resilience in fact in better impact over counter-factual. the is and what consumer consumer order time that better something habituation quality, leads that back active has adoption, the highs, to platform And consistently order speaks the want and of terms monthly when an And terms the more at and all-time an the the are and

Tony Xu

Yes.

and are and your we've certainly is, question bit that Prabir it's it's could said just a and day, times all at core a concern, audiences just -- look and of the categories the one things. Doug, the a echo eat front. say of times taken consumers little Inflation on eating take one taking on I'll when Dash are And a possible has I a very is behavior certainly resiliency restaurants I and where and merchant spend your things U.S. the I'll consume, definitely I question the merchants where highest we frequency would take month. largest still of business a the where which couple of -- care I'll think fortunate first. think of what any people So, I three because areas to making that our also we're of by on see, Dashers is the seriously, been doing the and be then of sure XX all that foreseen of

If inside to you're to to day, a looking that's you multiple we to you in that in, a because dining looking the XXX DoorDash marketplace most delivery. to shopping I some and engaged user that even eat they gain of and with dining face XX shots at into fantastic. actually times that's complementary mean is was recognize the and complementary thing categories experience are which to as Dasher like is when front, on and what to that's a while way right which into goal because It reinvest done impacting you see the earnings stores, now programs, though bonus well gives order a inflation seen expenses merchants and and want the participate in two per people start something the their gave other have serving then would business is largest in really built program see inflation. satisfying so in have very where over choose very XX% was in other going Dashers And grown also are And month. the we've on was definitely most materially of actually other to its times the And delivery, audience software. And our sales, person benefits audiences did. order cash Dasher was XX Dashers. And and retained we for they on consumers a out base, continue when we U.S. a you're can offered us haven't the maybe most results again occasions position we all of week. that's we far. just so Merchants, it have translate the also and in fortunate over for that Dashers when us the two couple do, cashback excited having far profitability of only very, really, those last we driving. that to a what flows the is a that's that very that very the had such but years of that XX% to be we the given XXX% tied one distance the been that's not about of We restaurants have increased really we that what fuel the,

Prabir Adarkar

the an of then earnings just what And more offer a costs preserve to color we order benefits to Dasher we described, little and to just Look have to elasticity, costs. just chosen in on these Tony program consumers Doug. chose growth absorb to that would and pass price chose to due had could absorb impact the on cost but the we instead have to consumer

right. When we flywheel quality explain ensure the the that way, me the different why we we maximize are did because having is that. let keep growth a us preserved, earnings supply enables in Dasher preserved prices drives of ensures unchanged slightly consumer growth adequate then to which and if consumer So

fund there is profitable is U.S. the you we the do well, very And the then of, how out, business use two a So Tony for it? and restaurant restaurant profits question from pointed business as things.

and on. to First, in new as invest previously international so we about in areas, talk

reinvest is second the in core restaurant business. The back

unique need prices, taken growing core prices, growth restaurant consumer in because merchant business. scale lower we've increased earnings. DASH we're for this of commissions, we've these So there them and Today Dashers. lower and efficiencies generating is gas the use to Historically,

to that. earnings. revisit we're investment future, increase revert help where If more prices DASH gas the allocating in so actually And we'll

is net EBITDA costs our absorbing neutral short, in basically expectations. to So these

Operator

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

Your line is open.

Michael McGovern

revenue? still What's new these are 'XX quarter you click for the first been driving to from restaurant marketing for I was the Thanks was more metric as the are would non-restaurant taking of QX double despite sales for consumer acquisition have are wanted -- this? the or and curious Thanks. since time? restaurant percent they year And a coming frequently that if category these -- my coming last customers QX primarily if more lower from I for see a question. largest into --

Prabir Adarkar

Yes. Thanks, Michael.

take at every this QX other so other me you I'll to still be thing under-penetrated question. acquired. terms Let first quarter, order year on so, categories, speaks Yes, is change QX these we're result just look of of that interesting we quarter and of stimulus. as customers our But where use you if in join a the 'XX, 'XX, of not customer our seeing up business did fiscal so this say the more last of elevated was acquisition to to and Ignoring look restaurant their restaurant. some fact if acquired restaurants. a joining that then got and last back business that interest mix in more of the we're actually category customers And we majority just than customers there QX an place lot these is, now we've number is customers and the to

undoubtedly commerce, percentage all destination DoorDash change. too use gets customers what it's because as DoorDash a early for will source product talking you being local things were for over but of your when about, these they first it's so small time And joined the known

Operator

from Deepak Wolfe. of line Mathivanan next comes question from Your the

line Your open. is

Deepak Mathivanan

the questions taking us. for questions. from Two Thanks Great.

placed there subscribers differences of non-food it's impact drivers of type is revenues? terms frequency adoption Is on And you very unit financial time can change convenience any kind Thank are cost just economics? that adjustment of gains? pre-COVID sustained you. the you underlying first-quarter some Prabir, and of maybe when consumers the Can a basket accrual between how in sizes? seeing strong, unpack on going -- question. back and reserves insurance in to and the categories versus elaborate but orders look then you First, or non-subscribers? does it is With of DashPass kind maybe lifestyles, of the

Prabir Adarkar

Deepak... So

Tony Xu

Deepak.

Prabir Adarkar

Go ahead, can Tony, up... I pick

Tony Xu

order question Yes. I gains I'll will reasons product. on Deepak, from The coming frequency subscriber for parts complementary. and our improvements -- mean Number increasing order are very, came you the points and frequency think and delivery the couple is dine-in the a base. if of Prabir take contributions then from there the first very really from question, I handle some our very you important. of are the But DashPass when in are step certainly one, in gains insurance. back, still

In fact, various world, every where pandemic. U.S. perhaps at of others geographies various we the this more had than reopened the states phase almost including certain aggressively of saw There the parts and were some are where we and the saw people substituting in currently, couple eating first that even we're with not that this out. in and the seeing certainly still where past of of in years quarter year eating

constantly The second making products. the is, point to we're would say I improvements

grocery stores, getting stores, quality et cetera, restaurants, So alcohol pharmacy the deliveries of increasing whether we're of increasing convenience constantly stores, rid that's defects. retail stores, inflection the maniacally we're stores, by

their customer and sure increasing from are is which expectations. that support meet DashPass in of We can customers part always we we're coming improving affordability continuously and to investing delight make

So are frequencies that's why gone. our the really

Prabir Adarkar

on in frequency increase mix user Deepak, also DashPass. specifically towards order grown has And that DashPass got and an you've

by So in those we claims. two outsized the insurance the things an concert on driven large experienced very increase for on in of amount claim reserves, impact act sort each few average of your with And question other.

about XX XX than compared line cost As see items the like in which customer of a had cost lower point insurance as sales, by well as to payment increased, it's of a claims and adjusted for support sales. to million, it's future Even reserves certainly relatively of portion a though other processing claims both for our cost basis you might impact small or rideshare. the result, we existing what our

the we while these -- manage to saying new long opportunity haven't to put near place begun we haven't we're in it's but it it -- this so, because in control long processes the costs can these EBITDA now represents to to cost, term, reflect also say near a focused we small claims the term costs takes an to because term. have on it, the And is a going in in area we where within elevated is been an changes where range. Last remain in data, but for thing insurance expect I'll our we

Operator

comes Brian Your Nowak line from the Morgan next from Stanley. of question

Your line is open.

Brian Nowak

my I for two. guys. have Thanks questions taking

put convenience see The sort contribution. in any the a restaurant the Thanks. raising Maybe And start qualitatively, line going a one, Was year we that or the that just first the XP Tony, at of you to it always Then of we process. you too That's ahead improving room point the delivery that in U.S. positive reinvest, if reason full-year first EBITDA, talk of and schedule, still all biggest it the little of us is about improvement core for one. the efficiency sort what of reaching ahead is not thought or schedule? are small, bit. variable if is why about on I a about touched with we're the second can learning focus one, to know business? couple you you the of areas maniacal

Tony Xu

go and to kind two Brian. terms of still efficiency large of and these. more in more ways think There room really about I Hi, finding Yes. general is there's a

everyone certainly just I side of give and even is sales second we and The next leverage of the the find even times to say, inventory P&L. then do the Being find should our see But and improve lots seeing still on more restaurants for those do how efficiency as of this. service especially it the being efficiency convenience first able can marketing how operations. it's or next more, are times the really on grocery consumers example such sales is or it's management which order the areas. wait given wait on it's the feeling us Take which we efficiency times P&L, build all fit, retention at, stores generally us or that the finding really makes gives stores, level the that of I side, to frequency further, general every stores, variance. have even increase labor product you're marketing really overall wait variance certainly from -- That challenges level thereby efficiency some industry management, you well front. I then higher leverage. as this grow the item. is, approaches, two that line the And and manage And cost the And love I is in of whether but in whether at we and think other lower able inventory think our the product-market would mean that

Prabir Adarkar

on XP Brian and raise guide. then profits your right secondly, earlier and why And and so scale reinvest I that convenience a drive small we dollars. to the any profit question, not generated and portion growth we try long-term It's now mentioned on as maximize we

Operator

the of from question Citi. Your next from comes Ronald line Josey

Your line is open.

Ronald Josey

here and more Great. prove categories we've saves being because Thanks that to or value bit and side, on money. ask for say members? surveys to I one folks here question And talks DashPass The same the other do run, taking order it's the wanted I But understand why more, usage on just parts best a have to how want value. frequency the and to expensive. a DashPass in is importance service it the greater added amount too available of on of that here. seeing of the maybe picture you we're of the given overall the I'd people bigger

in talked how us you're those that questions. Tony, hear DashPass and about bit to to might and value talk under then a about what wanted I a little commerce you. here. answer more help and terms of the little penetration Thank drive you And you about on can doing in the there? So letter, marketing first-party

Tony Xu

start feel a sense, lot DashPass want One some a in or of really product in of of kind multiple month I and can part, two right. that a But our free chime users you Prabir week. Sure. of especially if to and for I And times us your question possibly times around in which think I take think foreign multiple I that the you question, makes first answered parts. kind state, to discovering are on came these. think value, the

by more is that lot investments. experiences itself of or but categories. fact outside is as we the markets see QX, make other subscribers. also much introducing But last that would product we're certain you the product in making customers from say types your that announced we and question we'll think again? than I I thing in know well that made category that And for overall that me that improve to we the DashPass XX% DashPass and DashPass I our that continue number to are a of the much, second coming who buyers either number available want higher who preferred ordered offer as many remind and exclusive was those only ordering of through are sure can restaurants so

Prabir Adarkar

you before right. second I question move just things on, to you're couple of exactly to mean Tony, Actually, on Ron. a add the

probably savings So we far, been Over the program dollar both because delivering that and and and benefits that had to recognize start. extend in just and somewhere that start time the value to has the that's got we've to why, you something savings, merchants the consumers at that's start right. program it's about layering consumers scale now can natural and beyond place

them. We items We compared wants exclusive think the way with exclusive part to that is of your more restaurants actually of as to might maybe can have the use it savings so if stores, from cases we need opportunity you population billing for DashPass interesting other to and and available grocery the to don't do consumers. restaurants that result, market I can -- more vicinity. So a restaurant segmented We offerings. today to a our be for as way items the specifically that can add launched to do that segment in might but We of you convenience now can which something certain We restaurants to student this isn't of exclusive you provide are plan make beneficial. DashPass. is benefits in DashPass selection, add and access these

we within on the audiences do So can started. the and there's is benefit order to DashPass just in depending we're getting tailor things who

Tony Xu

or the major I interactivity. a it's And complement And positive every the premise And the digitization of can in-store was from become forced COVID, think of everyone asked digital business you is to compelled first actually that is as of so, their of lesson almost party I second on about any sales -- somewhat absolutely first learned that result, kind kind your is drive if physical is business effectively a and right? all, overnight. Ron, and digital the right. mean, operations experience, I there think question

those fact have continue their have benefited to shown who operations In have in think strength. invested I really aggressively and e-commerce very really,

demand -- that us and and their effectively seeing. we're merchants in the models business digital so with work And to and terms to operations. of to And what that's becoming transform willingness

has well. to from was even services serving seamlessly bit globally, that And systems so latest these of into only online That stores in integrate stores, part of drive storefront, in also have a restaurants. a and it a has as And the these businesses now becomes businesses really serving restaurants non-restaurants, right products their part but systems. aren't really runway, introduced large will system the that's capacity inside or manage storefront we small it to in now both liquor runway it well diversified of And helps platform as acquisition ordering because a that. of lot back does business, talk our able an called in-store product operating a that that Bbot. as played the we've our operations actually, big has and felt big large retail convenience now the where everyone U.S. stores, it's why small as grocery obviously stores, starting from with pet effectively enterprise stores, And

order lot work restaurants, power right to businesses, these is restaurants absolutely have in digital we but And of end-to-end so and operations a really do outside system build you're an party opportunity to it's an to of globally. first there the that of within

Operator

question JMP Andrew comes the Boone next from of Securities. from line Your

open. is Your line

Andrew Boone

Thanks for taking please. my two, questions. I have

really you can think and first to the feels is, question guys same the think you breakeven of the profitability? that much. you overall? models, starting of from to next So, of second behind kind you convenience so remind how about larger versus can letter get are opportunities, question like picture. to is you margin is investing allowing the in scale. lean margin And category guys excited terms a of kind So then that really just flow and the just into of to as Understood kind what's contribution velocity? to of more and it is get us invest that kind the you framework you variable about do see you're that bigger Thanks about think expansion how growth there. through But The

Tony Xu

can Hey. reinvest Tony. take maybe I'll we on first model. economics into back It's take and the question and the the the question Prabir those how

US, pads, the look, and is retail, even billion. you convenience, enormous dollars U.S. alcohol, larger if you get all first, in grocery are of over in an if $X the looked it's right, the On to number. we the other include of at outside of the I U.S. $XXX pretty categories to much pharmacy, And mean than that. they and and these larger add categories restaurants then

markets, or Drive the or with best the platform the math possible the business, Storefront achieve exceed actually we're marketplace, we expectation kind which launch it, at international ads is goes of philosophy first was from that DoorDash product we and the is that is really investment restaurant's right. is how the how it then the we think think and or that. for amount all business the products build We that. the actually unit when we And true the the we what's do worked I customer about of can cost right that so, for like positive and all the which first. convenience ideally -- the get just line-by-line we to down really business And going so meet the say outline -- much place, whether invest businesses opportunity there that businesses launching when to them to we back think in before don't do one to consider to instead and and doing which do that And how that large, keep about of this

Prabir Adarkar

Yes. we term with the profit so the And running question, maximize business of we're maximizing right. scale flow objective on dollars, the through long margin that in the

as as so today And very we're build they're They scale. community the as large. path very strong these is to for that's product-market to And categories Tony well what attractive combination that signals why operating count. in look fit investing and are of underpenetrated of alluded to this we're we

size example, the an So third-party in we give let you me convenience example.

of at of at on on XX, top all most stores stores majority strong the in you terms you DashMart data. and a the that customer off of popular right, because any look the in the that's That's If signal product-market look the see given DoorDash, DashMarts. orders our day, and I today fit the speaking,

is growth And that so the it that of continue to investing coupled this see signals economics, come. others the this solid years with and many these will to unit product-market gives fit confidence is we -- belief us to because what for lead

these that Now restaurant from those the and the business core increasing using to profits profit it's investments. U.S. profitable, business margins continue make core we're growing is and

right business that's the we to the because to extent for areas. core build don't profits progress, business a from we're U.S. fit a to definitely, us the that right new it's unique progress dollar after U.S. areas. amount numbers these perspective scaled increase and business. will point in whether trying grow run to We we're not perspective, margins a the the or these essentially with of EBITDA, core indicators order product-market this But that profitable allowed back margin those discipline the even said see reinvesting or manage to So the other

years adjust these drive the we are reinvest and signals to there And so intent signals provided many can to is the depending right on but see so profits now we we come. the growth flex for that will

Operator

from Sheridan Eric of comes line next the question from Goldman Your Sachs.

open. is line Your

Eric Sheridan

more periods and are thinking for and Thanks and sheet you more a decision for and playing quickly broader think of gets capital a fortress take versus longer-term the if the bit have in. broader one very growth medium becomes balance very maybe bit maybe to bit public picture valuation long long your elements you the little as to maybe about industry company I How build like using little questions. versus over platform sort a as the and we shore could. accelerated where things of in industries. sort perspective buy this taking differently. given on the structures have a about see constrained up ask Tony to that compressed you capital term? find bigger where broadly Two ourselves you of a I'd capital of environment market you often on Obviously love the then question And to want question.

demand do directly partner, back lead this make you come drive reluctant to their current we're years cycles platform can dynamics we partnerships in have Could the to to fulfill labor digital. hotel in about partner Thanks. time labor the wanting Given you constraint over from we embrace folks, historically maybe you on needs? have different see of been and environment see people of delivery companies partners the saw that with either platforms? the business with that more platform or periods Like think utilizing and been OTAs either to maybe where to reluctant

Tony Xu

thanks Yes, the Eric. Hey, for questions.

north of But point, to to a important capital your your advantage. $X use cash lot And know flexibility. to of to quite we gives balance really your not us it's advantage think billion, I maybe and use in capital we're position to best right. one, a I our think cash-generating restaurants the allow we in marketplace make is from U.S. way to And that privileged business On us flows, grow always our why have most cash of the really which a to to have investments. when first your own very also a where that's when very

achieve I really businesses. fit think to from think before to deploy a first, right, those I actually product-market building businesses we it's perspective, scale capital we important and that have products

of from then consider grow very organic then that and have deploying kind business. the how aggressively would are that that's ways In and very, scale unique about perspective. efficient I fit we product argue first that And to time an think capital to find product-market fact, to deploying we capital

more we think is sure and just it us, know, think track operating I record M&A wanted to team And of they and wanted how difficult capital by build efficient right. really we actually what you think is to bar really from we we of metrics things, same geographies, run historical of actually really us reflected of the see aligned we their all audiences. a it, the class one, And in perspective, keep think in a success, building that years right. it's efficiently not come. very giving if business for first thing including I I'm our this their as an did high build. that incredibly an consider then a the that team the very, high that's for terms loved very we on two very close example is but a business, only investing the I of where order attractive with should secondly, again that best for does Wolt, only we show upon accretive inorganic the that if P&L really not in the how bar retention very have it acting we a to And to built and to for in to we area if geographies. half long build find find obviously advantage saw which year long in of And that they had an that similarly in many product is this run world-class and it is it rates they

really is organic built have inorganic, times where a given cash decision no have it's the really are we as balance And we very, debt. the money now, certainly investments deployed think or making think sheet these But a we a lot that with how that's so we about seriously. capital flow as fact that a well whether privilege on of I very business positive when is but take important there I do think we

Operator

the of Mahaney... from line comes Your question Mark next

Tony Xu

sorry, I'm don't Prabir. answered take think you're question. going Eric's to I that? second sorry, Prabir, we I'm

Prabir Adarkar

Yes.

of to particularly leases. I options categories and was mean, and getting labor an as beyond in scale particularly really our with is Tony a fact to partnerships. such of the restaurants hour alluded these space tight. whether we And comes this And around in this U.S. looking The Drive, unique where second exist in that relevant particularly they're just it delivery are everyone, the it side -- in platform question the on the the or some actually customer it's -- that of earlier these was question a to around all and interest began customers -- it's unique now sort outside restaurants. of all to reach don't of simply this have, expense. fleet same-day it's business. different is the with Drive, inside that products more it's with now fleet given more era And market side state interesting, when when marketplace

successful restaurant the partners, are the the secular different seeing that well in the are we so outside same drive, towards as as convenience drive in embracing conversations of with And greater interested category categories and shift deployment. actually increased

Tony Xu

Eric restaurants behavior are incrementality, noticing same really back they incremental not the the and as and a just actually but just friends result, that consumers is The eating and are just I'd I seeing thing sync add orders terms in. Yes. And as the incremental is I at starting families again they're of exhibiting customers think think time. together Restaurants too. delivery only argument to where also inside are that going ordering of again in and

Operator

the Mahaney Evercore question Mark line ISI. Your comes next from of from

Your line is open.

Mark Mahaney

revenue for touch anything may just timing. that's on a Could then etc. it very become the Thanks. X order help then or but of on months a months, curve I who and average early usage stages new any you're seeing XX detail us you they maybe thoughts mature? the gap over think the DashPassers frequency ad wide you become lot. DashPass wide is And high, gap reaching people how a still in frequency Like then -- think have They of on on can future? just how time, and Thanks latest that between and for on on order about been will yes, provide average start

Prabir Adarkar

of grow. say still for nascent Mark. On the revenue, of not attractive a disclosed are our -- frequency lot young our the just us, number in Hey, been given available. as it base, that there's I we ad user the and size that monetize. haven't a it's would as we've of said size on Sure. platform, to rush we is a surfaces room well interactions And there's Yes, to an and the business, opportunity

appropriate Our the focus make use tough order this it's would any cohorts. by a your the -- core consumer we because mean, an On frequency, business question return time question And with experience. restaurants. these need sure balance certainly we incremental business beyond continuing to negative be as consumer coming into as U.S. scales, advertisers profits we're into well growth invest answer as other impacted to strengthening way. to see initiatives or regarding experience to growth if across we the will I It delivering conversions impacted a has to over period, in our

example, their once DashPass, So over frequency, cohort has so DashPass order that time let's as take continued joins an increasing. a just user

widen. that's just spread continues So to

be static, the cohort And so, taking order level. just frequencies the at will you've a am the is It got different I trying story avoid an to I'm it's question, remain but trying growth imprecise -- place these question. if reality not

Operator

Your next of from comes question Fitzgerald Fargo. line from Brian the Wells

is line open. Your

Brian Fitzgerald

of guys. couple the centers. micro essentially Thanks fulfillment DashMarts quick ones. A

kind you from base and we checked marketing locations running time SKU got back of growth the terms talk American last consumer the DashMarts? U.S. of or think trajectory of we asked a meeting versus Ad got you about around you're just every carrying North were I in how's European. Europe then, Can SKUs. XXXX around we that

dynamics America, any Looking with geographically? strength of Wolt or the respect out the sensitivity price to consumer there at North call to versus the

Tony Xu

grocery Prabir of how we're I problem how can problem for be, then experience. they to the the look think if just solve massive actually a could delivery And on today really when around take levels Tony. gap DashMart, think offer it's inside DashMart isn't build U.S., you anything I today relative and where the are there the the SKUs is penetration DashMart. and and example, the and to either in a penetration is solve where at way take levels is kind the I'll perhaps do to question the Brian, differences terms convenience build up many The the that on what think Hey, about question DashMart low or fall geographic buying in-store shopping largely the maybe picking suggests of has fairly convenience and post-COVID. On store actually and customer noticing. prefers that I this whether perhaps it's best we of stagnated to grocery inside just And to altogether. second online,

a their SKUs that's how the that is as can build from ground build what consumers, of of do we And it question trying lots for as that like exactly grocers, solve which if point that I way well. their think the from well make And grocers have as them to both more so getting another to them think work that for these what we help will and conveniently, case and about convenience. point can that's retailers built at they doing invention, an we and in-store right add the give think do And very out can figure your can such Dashers. And they merchandising, actually or it as buy require online are ordered, well we that use how a the case and greater is out, as about that with as retailers like optimize then we something well can inventory warehouses an to incremental as experience that that they use going them up are on effectively that as pickup how we selection to matches that service already particularly. do successful is it expectations figuring price consumers, with as experience can management

DashMart. really do with trying that's we're what to So

Prabir Adarkar

is price U.S. And foremost. levels you restaurants penetration European delivery exclude Australia, quite not for Europe problem outside be the just honest our reason it the or your the countries, know sensitivity and of that just then reference, of couple low, point to things, in-depth -- international was at the if And are whether you based on and I Japan question second, of look question, a an in whether is right, sure terms is the whatever. of one it's At it's to and to selection there I'm available at of first are if but a a that as with least also number food and on for analysis, because you. UK

I be is iffy. mean to experience the that to to then that have consumer means that of what it's food whether quality is going experience the the and fulfilling don't visibility some lead-gen, consumers countries these is the and in lower delivery that which leads just to is the of leads call lead restaurant to Second, order by delivered, in essentially And that adoption. ultimately poor who order into actually

blocks dimensions. we Japan. quality is as I countries, of Australia, as Europe address terms in fundamental it's very affordability their So is there or It selection, in these the these whether these and opportunity along development building of long think early

Operator

time. no over team. I'll There back questions the further are DoorDash at call the to turn this

Tony Xu

questions time thank and in forward the to today. And look We a your touch Have you Joel. you, Thank being good everybody of for soon. many you evening. with

Operator

This conference concludes call. today's

now disconnect. may You

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