DoorDash (DASH) 4 Nov 222022 Q3 Earnings call transcript

Company Profile

Participants

Andy Hargreaves	VP, IR
Tony Xu	Co-Founder, Chair and CEO
Prabir Adarkar	CFO
Ross Sandler	Barclays
Bernie McTernan	Needham
Deepak Mathivanan	Wolfe Research
Eric Sheridan	Goldman Sachs
James Lee	Mizuho Securities
Youssef Squali	Truist Securities
Douglas Anmuth	JPMorgan
Brian Nowak	Morgan Stanley
Mark Mahaney	Evercore ISI

Call transcript

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Operator

Thank you for standing by. My name is Heather, and I’ll be your conference operator today. At this time, I would welcome everyone to the Q3 2022 DASH Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Instructions]. [Operator you. Thank may you conference. Andy begin Hargraves, your

Andy Hargreaves

investment CEO, Heather. our third afternoon to be joined Chair, making thanks Adarkar. CFO, call. and for us be and Co-Founder, by business, financial strategies performance, forward-looking and our today's joining our local for today Xu; our results financial quarter our We'll pleased environment, approach. commerce expectations including during macroeconomic our and position, future Prabir and Thanks, I'm market and Good guidance, Tony statements of of opportunities, call, the and earnings XXXX operating

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

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

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

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

straight quarters, previous As we'll go questions. in to

the line open the Heather, question. that, first with please So to

Operator

Sandler from comes with question first Barclays. line the your And of Instructions] Ross [Operator

Ross Sandler

trends letter, question restaurant is, the you seeing international the very just the helpful. the then chart quarter. starting been XQ, possibly quarters, the what color U.S. macro, you've where that holding the thanks In far in U.S. markets or up that's contribution last Hey above margin pretty few level. a are versus the slowing for on either well bit? with guys, down for mentioned And Congrats across second any thus X% on Maybe on that you're

you some Any is that of that repeats there are out Or efficiencies? talk on efficiency in that drivers color what's north of biggest that And limit X%? of getting high is and there taking natural to higher Is a about digits? double just So percent get? are how marketing that could that? the of Or what driver like could markets the that? are

Tony Xu

with to briefly first Hey, hand the it answer and Tony. the Ross, one start and I'll second off it's Prabir.

the in last we in industries. the that's Only in have of seen restaurant last XX U.S., years On grocery the on continued U.S. revenues north flip the now. spend a first is north time war Europe, things last you've we've question, two. to we've future seen about the a current for and quarters of square it each tremendous each historical But the the in day way face growth the this I Historically, sticky of seen the been in and in looking really hard that to -- think an GOV, the sometimes thinking is on it's business, the and the years In XX% And that XX growth food energy obviously, two of of and crisis, marketplace in decline so at resilience a try pretty XX% business. specifically from in X frame. side, inflation the perspective. and

even think us though are resilient so the quantify to wondering And is all the most of how macro Food I headwinds. category.

is in something own same. day, what business Current true. our see be to shown that's historically, the think largely I we

DashPass membership we grow, all-time We highs that active monthly our results disclosed our saw also in in consumers the program.

those of and who cohorts so resembled behavior. And rates on you a impact what some who types the on Certainly, during the joined is pandemic extraordinarily about similar we're basis. pandemic. see ordering have those of relative softness the largely after by large, seeing and talking non-DashPass joined you're order But

we of kind currently. So that's what see

go-forward I I sometimes when much remember, kind that. we're market When So to of on but still of basis, mean look a as even a restaurant everything, industry than XX% than percentage sales. lower we're you square less hard it's U.S. overseas, the leader, the

than industry leading frequency industry-leading retention I the order XX% when U.S. at so in basis, you're business, particularly with fundamentals, frequency significantly why terms both with of seeing I Volt, order I in square, think, in the well runway And as in I future retention grew in resilience our was European who the and potential fundamentals on and square business, categories, then peers, think what the the that's the and its the faster guidance. euro a as that reflected strong these

I of twist We've downs, leader in specifics of and On U.S. details 'XX. all category marketplace of grown the the respect pressures some contribution sideways the our pandemic, as kind turns, But let And talk step last of the disclosure. regulatory take of, and of second has particularly seen kind we've with even think, a extended in business. question, XX. spite the likes we've Prop macro seen climate 'XX of years, that I lead. the market I ups, there those versus that the the in and share We've fourfold one gained was has an extra heading happened I'll points into of obviously, -- as the of margin X.X business XX Prabir I pandemic. the back changes think when was There things think a to with what about a and of lot

I'm able proud of to the for operate such think being I in volatility. so really team And

there and have line business that in item so a inches isn't. that, really line there X.X last every happen? given really advantage and you these now seen did This of counts, interest has is managing think, line item every the matters, and line details. between but compound Every I compounds, their be years. in And the wish a interaction really how Well, affects us accrue was And the silver you've where all over dynamics items. to that bullet, the I item it's measuring

Prabir Adarkar

Prabir. it's Ross,

Just higher some product. companies e-commerce, a add in the other Tony's but to in other past, operate the have best-in-class impact of the and to a been fairly with in Logically, we've talked about remain our of of function customers. occasional there much who less more well that's continues it's tech point. is category user consumer to retention Look, on and frankly, for the think the areas DashPass obituated, comparison be from as on that things, of impact other to to as resilient, seems we couple the more stickiness DashPass limited macro, behavior strong. is to retentions I hand,

XXXX, we're just Order October, Pace And users establishes metrics so now pointed of that consumer in really well acquisition all in at and but has continues that the our seeing frequency as grown results. that's not a what both basically to say all solid quarter-on-quarter. to when year-on-year customer growth, year-on-year. And for metrics to and QX, you remain QX of monthly Tony foundation into in in remain as that strong. have strong. that continue grown consumer look active our to

than of have we've why the terms color that hours has well margin, XXXX all-in contribution So that average our includes Dasher improvements product more specific enhanced But led due question of in per that's is in the to a existing incremental order to certain two was Dasher was higher each incremental a the question Dasher I normalized. has of made market higher of supply these from cost think addition, your And by Dasher. our cost labor fleet market. combination benefit the of impacted XXXX things, that on Today, actually the macro. acquisition DashPass your X%. an a cost of On expensive costs. as as also retention actually and labor

this Dasher Those continue compared the to led in improvements general structure. so to our has benefit product incremental cost And average. year in benefiting costs will this higher XXXX

in Prop provide factors provide was into total the have objective execution well maximize percentages progression and providing guidance. so to in everyone what the we business your operate margin, to then markets X% we going which inflation on I our target incremental our rather our our all proof a forward. see COVID QX visibility on wanted you EBITDA -- we've the forth, to the reopening, other margin and so by that, remind was about but the dollars. through above profit trajectory through COVID, impact on to so all don't and on historically, profit of these XX, through we really as and said as And contribution to points and through way, just through And And question aim

And is margins so profit increases total practically, what that will flex we means dollars. that

Operator

Bernie from McTernan. of comes question next Your the line

line now open. is Your

Bernie McTernan

Great. Thanks question. the taking for

order, you or And percentages piece On needs the to grocery be to and rank largest profitability, drags whether then technology maybe can convenience those non-restaurant advancements. on happen put or it's unlock the some thinking around to it's just drag profitable, total maybe international? what whether company on through the profitability, scale

Tony Xu

on, and Maybe some numbers. hand Tony, of I Yes. I the it can think, to It's then Prabir start. I'll

business commerce marketplace can economy. as fruit. our are investing largest was local to think the I non-restaurants the understand be it's as platform categories. always effort important digital sure -- the as our really well in an build I it operations, physical of they category successful into to And that every some commerce into why we're DoorDash goal starts investments I to both think, our in the of these mean make bearing move local non-U.S. largest and

transpired variable business If with have into at a of as business X couple effectively that of dollars the last businesses a improving is billions as has category of in margin category leader run years, largely profit non-restaurants well of was the breakeven. you in economics. the GOV convenience third-party several a rate And looked grown we what

example, than a almost standing started again, restaurants, of years one any other the that start business we outside for of which America, instance, more platform outside is we partners restaurants have in couple ago. As Today, the XX,XXX category. over earliest from a North

And the see to we long-term we And projects, about to flow. investing way what as think we Prabir question according said similar is so what cash to last at. invest maximizing they're around again stage total the

continue we'll we'll product don't, so signals, to seeing back. fit invest. And market long as pull we if And as we're

Prabir Adarkar

And that us Bernie, of excitement investments. share around just comments, me conviction Tony's these let a and data couple to add to give points

in were these scale the large to point, penetration made are markets a our few first into, categories these international, expand of whether in points even large new these or we've business. and markets massive that trillion-dollar add The market past which is to could the attempting

less than very cases, Second, couple we've strong we're operating seeing of these And for years. a progress. some in signs areas been in of

our verticals, new is grocery Our business year-on-year. over XX% growing convenience and

Our space. year-on-year, over other companies grocery in that business faster than growing significantly U.S. third-party is XXX% and this that's operate

XX% you and a function the international on growing are product so built Our currency year-on-year constant is showing back that and to our to, that over order rate, that compare other delivery a basis. that growth growing performance players keep coming And European business year-on-year we've people food i.e., a retention and single-digit of frequency. fact is like better

these we talked in And in exactly we playing little categories, out terms originally we investment new our product out just is made market investments in or like both they're we that fit. investments, we so would. thesis had the what of had laid they as and This see when a

by And third-party to letter. and margins on of continue this unless that margins. to made towards had commitment. to to grocery attractive earlier get of regularly to committed being we're breakeven QX terms these a And proof will And QX. this the economics. there of to ensure wouldn't a convenience, earlier, which some variable of on the steady Tony early third-party profitability, better as path in year. was steady-state deliver in business Now alluded our We track are see expect end things economics. profit to do in is progress than year, we measure improve we the We're that believe cited the unit to things we these points, beginning we we any on

improving It's these there's deliveries, bullet. the areas factors no exact the silver like will in profitability around that at business playbooks so single those restaurant points are done exciting in great way. in rates optimizing get repeating detail help the about we -- the other not letter, U.S. these to ultimately And what areas. the shareholder along look laid have out it's these It's proof if of which in you we've efficiency U.S. same business, just did. defect the And

And so we but improve have a products. long way continue we to to go,

more margin along can We believe we growth continue with drive outsized improvement. to get efficient. We

Bernie McTernan

thank helpful. all data It's in the the release. you. And for Great, thanks really

Operator

question Mathivanan. next Deepak comes of line Your from the

Your line now is open.

Deepak Mathivanan

question. investing Tony, question Great. term. Thanks the long on a for taking for the

of Your have philosophy is that's last lot like restaurant three a And gone one made contribution second a can of maturing. sense. lot six a of and restaurant But cost up very clear, interest to that prioritizing internally for the makes that least at very your maybe right of it margin is U.S. capital it business, Clearly, payback on U.S. now? months. marketplace the great. many of we new address businesses then that higher. in for kind or faster But question, you concern it's of would this of help think projects context is this investing be of But growth of for should Prabir. about ROIs higher philosophy? qualitatively, the The you given periods in core you sort your are approaching There's oldest Maybe think how the as for maybe lot helpful. environment, capital how about that for maybe disclosure rates kind

Tony Xu

to low investing, one the high we you're I'll first to project? investments. when talking into even side, input our our you stage a primary some though the environment, see. resilient that flip we're one. environment, as foray a cannot then any countries that, that But how beyond category, sometimes make the seeing obviously not to want when With of good there's flows other we appropriate or be, entry enough the the we're frankly, invest other the risk, Deepak, in are into that the think disciplined whether "times" respect build-out whether you into have the always taking very on been to take cash signal strong, other it's these to as input just going a in And easy rate are to interest I of And environment categories. think we've gives restaurant been Sure. investing about or take interest categories the business. you about especially it's advertising robust, business I you our of overinvest

the of we're making years. that that I last we're not into as operating we sure from leverage investing the the where into of with we're of couple but allow lot future. see takes in cost that systems account company years we're us we've to tremendously but the operating to couple that making as make terms So were efficient of we're the sit, focus of certainly, of taking and investing discipline, sure And as capital sure grown people, last that takes it to that over intentional lot in the in discipline, a a into also just heading

we that the especially we're into or into as look And new categories these of areas, so newer business other still really, into into those stage we project? areas, it's to input, the to we're would discipline. But investing appropriate the are I are say make or the sure of doing overseas it's investments investing whether primary things that with some

Prabir Adarkar

GMV penetration And Deepak, in amount where be one just go my large given comment is our These these there's that, made. cash small size trillion-dollar of the comment are of add back that can committee markets, lot a convert of which more markets, to And I'll a about flow. money free markets. to these can

the our execution opportunities so pencil work. ROI and math will in And success of with just you historically, the scale math if out the these

essentially are is a the have or even percentage regarding combined of our sometimes to execution. and sort what fact of And say that On it's couple seen sales you continue were enduring eating to and regardless our in sort but business category. a grow, through quarter-to-quarter may little back remains despite of Whereas you're overall following, of to to whether continued of points what these the we actually and that growth resilience and to despite third-party we've at pressures this grow. data eat. store, and restaurants overall opportunities the People the sign. which got provide reopening, that to is a a a stuck items to restaurants is of or of business continued restaurant Even grow. makes which expectations providers using point they're has you've which penetration in that So with growth. percentage had behavior eat I'll math is you've which they easy reopening, that and the good population their the modulate question, the small, in and get of of what's the basis. portion of work very the been They data in But cities to People the going scale DoorDash what will taken it numbers. e-commerce, the that from inflationary habit I your is fact U.S. dynamic, things. actually our down. small the things, of that opportunity, U.S. our in level is is on, be of the basket into honest, the other areas it's eat. with that, MAUs adjust number still seeing an happening other And their people so

us want as and or items the Part grocery make affordability. the get quality to case items scale we're of forward is to for their the restaurants, reason for use of And to use they those it on we convenience selection, or talked now increasing continue order We the the categories. of use so in because new their their flowers business the opportunity the get on is progress bringing or perhaps new people new is get don't look for liquor about delivery. can get size categories which DoorDash a to it's that fundamentals,

growing growth to a as of we new and number DoorDash unlock our this of categories, U.S. continue so And leg the going population. to penetration actually is now coming new to increasing the try are customers these our of next

So a growth I on go-forward provides about basis. how perspective on hopefully, some think that

Operator

question of Sheridan. line the Eric next The comes from

open. Your line is now

Eric Sheridan

Maybe Thanks so question. if the taking for I can. much two,

Wolt couple against? acquisition. us most in years? market-leading focused share moving next you seeing in delivery would on the behavior think months? some competitive runway over to First, last as industry of brand aspects a the and how and last markets position today step a the changed is that are lower some long What of question. of the where played more instances see you're I of that seeing of result where back levers your a taking to on you informs couple you're you market X impact leader executing in a of the going bigger maybe more just how then after of understand Can the at opportunities there elements of some a has X one. in markets understood better only quarters? intensity of picture the X the you consumer do you the of the needle than of And penetration. that more potentially market the rationalized sector a ago through more be in capital from some mature has in players of over challenger been was market acquired different What couple was help of of the some all where number That looking position private the X it or a some quarters lot a And markets

Tony Xu

Prabir Yes. chime Maybe start, here. in Eric, and can let I I'll

competition that there. competitive intensity. that really I a both and I think a to believe that's there's I that's questions at where growing, those out sure terms industry not answer it's to And in very is I'm ever always been expectations. consumer "letdown" highest the the because, competitive of And form least of from sit, of

to maybe the in runways stores see. the lower are retail grocery greater industry, quality the to can making think leader been customer biggest I at still challenge industry, say really are categories. one whether is not I is out that restaurant its superior think say end wouldn't the of market are an also the that and I the consumers the more about we rate they that to that I not from, that to selection Consumers it of is can second the have market question, when product. discussed, is. form service that a common And going investment day product it's really actually whether And order market would expect of But sure to intensity where quality. the the the the what we premise the with affordability, large to or of penetrate that's really competitive there's yet leader, get markets I in majority limit miss a another. or me, and going actually leader better that there's always respect both in ability support. in our Wolt what's Prabir to think it's we I try me, there we

our there's is I U.S. teams And this to so some instruction would might unreliable teams continue that But give think overseas, just where be we sure both that our it's what or I as we over the some leader I so the reporting. the someone say which third-party to only do of sure order leads entering that retention making that's to quality our see market time, us gains in market. whether and in or product that's invest whether advantage the frequency, that just compound making

Prabir Adarkar

they've built. And just super euro Yes. I that, team if XX% and in one grew QX, mean to point Eric. In look they year-on-year add of we to performance, you terms. just at proud the Wolt's what were data

think of those they're that's going digits’ growing year-on-year. rates. what European I've And seen, I company another at can't an of Now single delivery from example food

with and just on given to gaining sit hard so approaches their the on. it's So versus rates data not disparity issues growth and say share third-party here and relying is that in Wolt

around absolute fact retention, is, in I rate, product rates has them a that posting. experience proof and produce to mind, the and a what's the Wolt order team on growth they're has rely my point growing reliable frequency, that which allowed the the that's enables pretty created that So growth higher

Operator

question line Lee. the Your from James next comes of

is line now Your open.

James Lee

Two please. here,

flexibility your the given First new offering or room pace of increase your your in guys Any fees and consumer and DashSmart, off, unit to any in also I there expanded value geographic you to DashPass, of investments there? terms or was you wondering, there in stores customers? proposition about And to can help change talk economics behavior is affirm long-term expansion? thinking to Thanks. kind of on

Prabir Adarkar

the Thanks one take for a question, can the James. with Tony then I'll talk first second. and

quality general a Dasher selection philosophy, it's that's in the trying consumer caused on increase the by fees earnings. means affordability friction third us and And as improve means non-DashPass and or whether trying reduce -- we're particularly fees, reducing through affordability. dimension, DashPass merchants Just commissions or to to It's product. to

making unit don't need taking of in we our a subscription DashPass their the the without rates increase case, work current into to account because DashPass word fine even economics rates, at economics So as way fee. even

membership in So partnerships have those other slow remain I despite other down being in frankly hit or consistent that mean providing. be may very highs program despite paid growth program largest been of this things, record despite of has may DashPass so in competitors the into entered we're our the to bundled competitors the dashboard I we've We would been of pace far. DashPass food the the offerings of seeing And continues which category. It grow. at of all that DashPass that pace some adoption view subscribers. an the happy with fee actually something terms as in increase subscription

way terms the the there's growth. like anything We position it's we structure. no intent right change up. set for fee us of way it's to the at in So least like And now,

Tony Xu

line of we James. team most if to which I'm of a the letter, the increased basis last DashMart both for this could, proud the for been that and reduced able a heading in things Dashers, that for fees Yes, of of and the sales years over I'm -- I'll is bit in in I for bottom X.X earnings before What think the of growth seen we've accomplishing even in the the that I consumers. increased And business. years, on all is top last is really question, add into shareholder we've achieving though proud to one our the for continued that stated platform, just X.X merchants all

And front. so that done has the improving the part DashPass a consumer really on the lucky serve. each and of big for been this offerings certainly we're we've -- to But while audiences of that

delivery is for something, of optimized delivery the of the though, that On really the And to why in large I for say, of things has been Obviously, offline growth, certain third-party of delivery reached why non-restaurant with do grocery It's from so that DashMart store, studying question, or a level or has think runway that like to that delivery. closely it delivery certain we've lot With a reached and they industries setup one fraction doing going we've stores the only seen even far categories it get restaurant has penetrated? we're start again, from for do for what of a one browsing. the move industry, penetration isn't other delivery inside really it. these DashMart, it's Or optimized the why of. important types very a things doing online? we're is for retail

get product on always haven't it you doesn't these than they They a inside own. always pay what exactly consumer more know up is of And shop even result, a result, store. as that delivery as a what's don't seen when third-party And would is expensive that shelf. some don't penetration. actually than their they you exactly a As what stores sometimes the and a see someone buy the result, can what show it, on faster want in

Giant the our it's Sephora, with, industry. in to industry or of Eagle the future really believe Markets really, to we And or who going gate, -- fantastic be but Dick's start we in demand to also the to Sporting to out offer how to is future want really has invent by want that we the a give belief right product were in that is the they their could understand they all when or greater we them or expect they of certainly people on working these so than they pay what do whether own. at to exactly Sprouts store can privileged categories, Goods around and with And with work of working addition like prices same Loblaws it partners incremental Farmers of retail with is the customers bring what in order convenience

so part we're DashMart these doing really And really States, of important doing with the we're team that United It's infrastructural to that, going very that of and component we've concert lucky DashMart what in doing up partners here is. in with. And is been the that that be to a all for a that's we're future. and overseas,

projects. investments we can the profit it's Now how the strategy with that also invest said, maximize how can about discipline just just according dollars. of to at we It's not DoorDash, long-term the long-term like stage all of about with

to if keep that what business. that, grow, we're that's sure DashMarts We're investments. third-party fit. that the we achieve market investing. will so that as we It's And doing make with we're DashMarts, what too. not can we those continue continue seeing see we making doing doing And well, just with with we product Once

what couple far, just And a road we see. there's right? the ahead, started DashMart long of business so We've a But really years ago. like we

quality. we So we're have quickly, improving our keep very learning very, to product and

James Lee

you. Thank

Operator

of next Youssef question line the Your Squali. comes from

is line Your open.

Youssef Squali

Two Thank very Great. much. you please. questions,

looking just maybe the at P&L. First,

gone up efficiency Your has tremendously. market

I think year, a percentage last like your by X,XXX the as of sales points. something in revenue basis marketing dropped think and I

QX? EBITDA And second, on us not the for higher wondering spend but coming only category, was U.S. down on from? Maybe acceleration that. the drivers it's of the basis, kind GOVs terms on dominate? for absolute unpack of a better for is little primary obviously just help understand So Is an the ad bit the Is of it the us help restaurant a of there. in it on where less maybe the is basis. percentage rates? in where Wolt, understand And us that kind just you driver that even you expectation efficiency I can if maybe

the things is impressive think which you an just customer considered. at all-time high, acquisition all talked I in really letter, about

just maybe maybe as us we you're understand, where performance. and you. such a forward that again, So go huge of sustainability help Thank countries specific seeing

Prabir Adarkar

maybe of both those take Tony, there's add. else to if anything I'll chime Hey, in questions. And Youssef,

materially, went public in just marketing on the first when we want you've comments go sort to cohort that declines that's Because efficiency some fourth had cohort and So It into spend" S-X, the required. is of of I of gets there the spend cohort declines. marketing once its to which a we right? with associated no back third, maintenance year the acquired second, life, back the point, that shared "marketing is

and And marketing. so leverage what business of that base larger our gets sales and existing as that gets in our means consumers larger, provides is

apart the leverage acquisition and but of to driven that in made. a is actually fleet Dash up. product has platform. are at CAC, The tear making been if merchant perform by on There fulfill -- particularly means our specifically, 'XX on platform. more compared our acquire CAC retention deliveries that's a of there's of that versus gone And easier were Dash. it costs. you fewer acquisition into leverage -- We're acquisition improvements costs, look as our our need acquisition to putting are in and Dash to sales we've marketing to result, more to we and to happening the Dashers terms Dashers been that hours marketing to Now versus versus 'XX, cost line lot

point in about of leverage base existing made the the to increase an addition And provided so I that's consumers. in

response the these a couple of When So have Wolt marketing that's operates in levels the your I of Wolt right? are to I factors. efficiency question. XXX penetration. million question, markets And mean people, that low to markets having down it comes on --

adoption Wolt than markets, In less fact, the are XX%. levels in oldest even

they lot in just new operate there's the So in they expand for which a customer expand markets to in as growth as acquisition cities those well of operate. which to room in countries

they high utilization Wolt of them macro has only order therefore, product, the the the with like frequency in is and that, that these drive retention delivery, to food that the things people as end like X helped of point increasing increase convenience fact the combination up of coupled app eating, So people and the continues that the the you're results the seeing. super

Youssef Squali

Super helpful. Thank you.

Operator

next comes line the from Your question of Doug Anmuth.

Your line is now open.

Douglas Anmuth

'XX and questions. also investors, update EBITDA. increase up quarter, to your regulatory come to last given just you insurance a kind Thanks two And then environment things if lot from just secondly, status the DOL ruling want that modest a suggesting higher then XX have for outstanding. in costs just still any I and commentary the with Prop of taking ask

you those. maybe comment could So on

Prabir Adarkar

want. I'll in start. Tony, chime And Maybe you can whenever Sure. you

some on XXXX think and its will in that our profit, said we've the right? We're and taken tops, so reinvested and areas. in U.S. to EBITDA. the we them profit and dollars perfectly create will point, happened both at getting a the of investment increase flow-through contribution are continue the where grow going margin these letter, contribution profits in those restaurant EBITDA impact in we is -- offset point in we improvement, So the expect margin in areas that's business dollar Historically, I what's these exhibiting majority so business, the to and restaurant to increase investment the have don't investment

expect insurance investment both EBITDA. in growth investment The in insurance restaurant our we trajectory GOV, to the our margin annual which were cost terms increase actually, identify when improvement So at mode, increase we question increasing in at we look caveat flat. coupled change our portion annual a continue if attractive and current us to profit, of approach I'll as But and costs percentage opportunities. QX so this remain your on you things, On two QX, and speed, current the insurance, versus today, in in is with XXXX. dollar of will make margin these EBITDA, combination areas, help only I'll is

I So QX. won't to progress percentage no been to at in in but good there's got as watch QX. declare closely, a increase a winner QX this We've least relative yet.

Tony Xu

we're our with that on that of of work. we're line exactly expected. recently, largely quite broadly, seeing, respect much an business I just they're determination the mean, made regarding supportive doesn't I we to seeing and regulatory Doug, or there. DOL the it this model think what pretty we're are question announcement and reclassify was change ways, to, on affirmation there that what have make Yes, would same Obama's basis of And just sure independent fact say, President out largely contractor drivers. more And is workers in many administration's the

and think to been and of what so and want. I seen regulators, count perhaps is abuse policy I let's the productive cities has frankly, sure say, we've would in to And outside that we've we the in everyone trying Dashers again, it's remind power that industry, by of same mean, handful of been have, are very what a lawmakers, serve I together. large, anyone can cities, overregulate terms that of that spoken making Dashers their

talking a work Dashers in about average their than we're are X XX Dashers hours of terms on the is Dasher, X of Dashers week every activity, fewer hours week. the quarter, and United a This fewer XX% In average, than States. working million

-- their saying about you value feet DoorDash they voters And vast XX look preferred it thing with flexibility as look an we the XX% And -- the at California platform what say majority of staying at they're of XX. as really offers. The supported Proposition is Proposition that in independent so they Dashers and the take what Dashers is number example, when contractors. preferred one then

account up which of that regulators to and work And that's control like will where be see reflect to is, ought they so take I'm and to catch this able people we is they'd what work, which of candidly what actually Dashers really realities that the to policymakers into optimistic what want, is labor when modern-day future really and see. work they laws the

So we don't any changes expect we've new said versus what before. really

Prabir Adarkar

Tony's cases, that the efficiently comments to just in And to entirely as Doug, way to try add our execute new goal the into situations, try in is be some onerous optimize we And this system. be away. regulation cost. to can the might and introduces situations But in and cost to optimized such cost some as Obviously, cannot there.

we act right to protect the costs profit so operate have our if overly able a onerous, to to expectation will a in. And generate in are those an EBITDA markets we and And guidance. we

I sure And so clear. make want to that, that's

Douglas Anmuth

Thank you.

Operator

Nowak. Brian of line the from comes question next Your

now Your open. line is

Brian Nowak

of drive walk where holding probably we investment in my stock? of and sort maybe flow far. or just your for of improve well more philosophy on your through of the both morale, Can to to you're these have to part businesses industries 'XX, world more U.S. and developing sort more for Thanks sort taking ensure maintain of macro. consumer scenarios. best positioned to the sort you on business developed which The different decelerates is matters put weaker cash Europe post-recovery and generative philosophy sort around just in if great us about while I that earlier in as can Great. in a so the risk business impact macro But you you just management question. also products a business as into best in doing employee scenario your one from and has or the potentially U.S. some have us talk Tony

Tony Xu

think Brian, commerce investments into to and we've storefronts. consistent think went in last I operations when done. I businesses of I from what yes, investment note when are to local the drumbeat Drive XX line the into outside mean, telling making with business, business we with the of that the overseas want we've we've now, basically S-X, narrative X become important products platform mean happened company, public we're both company think think an local a the I I we mean, about one like ads Dress of business and has the years. towards now a restaurant category, kind be investments just the I the largely X.X largest outlined that. been where mean in in even I continued largest platform the I quarters, building And commerce it's has doing philosophy last marketplace, how how what local commerce marching with take towards of of to from what we we

disciplined been that we lot commensurate continue biggest thing today, projects. about think I of stay when a we investing what about those so do we stage make thinking how the I've to actually And about sure are to the is

on the for Now and obviously, all me, put execution. it's going is you would accordingly. seeing there's not But signal of point changed pressure a we're as some past lot think, headwinds, have macro that in But in and if mentioned, our on year. back that of certainly to which invest suggests consumer, the just not that I -- if you're areas, pull investment we these then it towards we're the and going puts is, pressure obviously,

the our size really, into our now those businesses. now keeping and non-U.S. it's larger also of going me, non-restaurants everyone for on gone from ago. DoorDash have are dollars investment business a just the all to years And built again, investments five of about few a that just lot than even we've category of that's businesses. for And to business in so a one just discipline the And line, put though perspective things

we what if so we're will because macro seeing see. invest we certainly But behavior come like accordingly. pressures, of down obviously, And we

Prabir Adarkar

is the vast investment. just mean, another, cash the are in other right that scale terms we're alter not comments, of can because in or And that we're categories, the And new these growing remember, not areas, grow this or the historically, whatever, these add to we've of in demand, means U.S. business restaurant to improvement reason invested Tony's generates by And seeing discretionary. majority flow. one pulling of economics if the on of right for consumer we better back served seeing the in Brian. pace But investment I unit significant we're terms signal to core into and international. our investments because

disciplined been allocation. capital we've pretty with far, So

You results the can plan equally going now terms forward. the to see and the business, being that of U.S. restaurant disciplined continue in in is

Brian Nowak

both. you, Thank Great.

Operator

line Your Mark of comes the from question Mahaney. final

now open. Your line is

Mark Mahaney

more supply just by Is EBITDA Anything extra said into modest your know precise somebody Anything want answer this would nuances. secondly, annual finishing carefully. macro missing just had Dashers? you but a on impact quarter, And you the your hustle always you side I 'XX. out parse demand about not to that's increased read when in please. there on time, the increase questions, ask very to you'd amount. the the Sorry bring about a question, modest I you for you to That led side. word. asked We question, side? words Two Prabir, maybe but call And already comments then anything annual need such last EBITDA use about make to any said your the didn't that? sure to the we're

Prabir Adarkar

Yes. Maybe I'll take both.

Dasher So year the Mark, this question, last normalized was market being it point through supply around the year. on the more this labor today's is made I than conversation sort of

but advertising And hours in that's the product supply on, to having supply actually generating terms Dashers. benefit obviously, fleet incremental Dashers. some improvements now improved rates and has impact degree, by available retention the turbocharged of is been have that from so an that existing And that's become to also of

to don't And you those Dasher. many need acquire things just of -- you so don't as new means have both

that and as to shocks the labor of a provided better environment labor the our well national it's long the because there's of short, no story So that's the as structure all-in -- benefiting made, we've -- environment QX being environment. expect been costs labor that in cost today. has And in improvement resulted XXXX, we product continue

share the reason not perspective, And X. with On We're Really, contribution anymore. U.S. both our a 'XX EBITDA, providing as soaked around trying which the of a the about largely point not are the guidance terms guidance. what in investments was in generate with see investments. a lot to when EBITDA you throws am we're continuing It We'll U.S. from to margins, therefore in not to I cadence. anymore. or you pickup by was the grow line to perfect specific the better improvements not and margin dollars and be, terms. word of used a where overextrapolate business, from it's going back you in think getting in and up offset going to the business come expansion 'XX from on business dynamics I'd the QX, now in But continues right quantitative while underlying question and margin off is you terms at the of normal didn't because incremental XXXX a that's is dollar on into profit the to XXXX, with you urge restaurant more

Mark Mahaney

Prabir. you, Thank Okay.

Operator

now further call time. you. are at this There back over Mr. Andy questions turn the I to Hargreaves, no

Andy Hargreaves

you, look a appreciate and your talking for many joining us everybody, today your good We soon. Thank support, of time with Have today. to both you evening. Great. forward and

Operator

This conference today's does conclude call.

may You now disconnect.

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