DoorDash (DASH) 1 Nov 232023 Q3 Earnings call transcript

Company Profile

Participants

Andrew Hargreaves	executive
Nikhil Devnani	analyst
Tony Xu	executive
Ross Sandler	analyst
Ravi Inukonda	executive
Deepak Mathivanan	analyst
Ronald Josey	analyst
Eric Sheridan	analyst
Douglas Anmuth	analyst
Brian Nowak	analyst
Michael Morton	analyst
Michael McGovern	analyst
Andrew Boone	analyst

Call transcript

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Operator

Thank you for standing by, and welcome to the DoorDash's Q3 2023 Earnings Call. I would now like to welcome Andy Hargreaves, VP of Investor Relations to begin the call. Andy, over to you.

Andrew Hargreaves

Thank you very much. Good afternoon, everybody, and thanks for joining us for our Q3 2023 earnings call. I'm very pleased to be joined today by Co-Founder, Chair and CEO, Tony Xu; and CFO, Ravi Inukonda. We'll be making forward-looking statements during today's call, including our expectations for our business, financial position, operating performance, our guidance, strategies, our investment approach and the consumer spending environment.

to differ uncertainties materially subject actual could are to results from statements risks that and cause Forward-looking those described. uncertainties Form these SEC of and described are Many in filings, including XX-Ks XX-Qs. and risks our

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

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

I Finally, replay on this an website the and on call be webcasted will to available begin will ends. Operator, questions. audio pass is Relations after our taking our website, Investor you, and being will of shortly it we call back the audio call

Operator

Devnani first [Operator Nikhil line of Bernstein. from the Our question comes Instructions] with

Nikhil Devnani

had on the U.S. marketplace. I a X-parter

agree Can you the business about perception you So is accelerating assessment? do in and a follow-on, I that how your see given data sensitivity actually of your everyone discretionary, in consumers your the about headwinds that obviously the consumer, highly demand? you one, yet marketplace would with is And all of use service, the then is variety but softening think what how on, as a worried a you U.S. drove And comment is acceleration? think

Tony Xu

in. and start Maybe chime Tony. it's Ravi, feel I'll free Nikhil, to

right. I question, On the absolutely of you're first part mean the

impressive, line has ago we a larger given ago. a and where especially a today lot and frankly, in of that's than the unit its I think growth phenomenal economics. that fact certainly a quarter And year we we're business saw improved in were accelerated every quarter

or of the or you mean, U.S. a contributing of are the made. new restaurant but X few the of phenomenon we literally to the year added outside of quite and on, that's have ago restaurants front, the terms years of ago come the marketplace improvements restaurant that business on from or XXX,XXX going on a nonrestaurants we've now nearly fast grocery quarter to selection result into I X you the stores Whether a U.S. a convenience multibillion-dollar come growing in In DoorDash when significantly. to customers we've scale And almost business that or the a platform going product look industry the we've and the lot added over side, platform half outside into on general, at in of are ago, it's alcohol and look segments, really first. selection restaurants. And

certainly so of And that's in adding terms the selection.

Second, improve we've whether it's our the of accuracy. quality speed, our continued our service, to timeliness,

our DashPass improved we've well customer along the both programs, our as the we've as for support affordability the way. all improved non-DashPass for cohorts. And Third, members fourth, of

to years some all and customer QX. reported kind just you and of to many fundamentals of of the quality on to we that of of saw in the what that And and product to result so growth of that's it's work the the mastery in terms efficiencies of see U.S., the really improving of that's of leading in continuing and the in business both numbers the the lines culminate product, continue opportunities

lived through XX headwinds we've X certainly And faced question, in I terms second lived we it's years the through -- true that's in global DoorDash. peak it's and all been business always last that to -- respect a think with has pandemic. the the we've of our in been the been very think I dynamic years. of We building Obviously, pandemic. tailwinds

ones a We've today. ourselves through including have through things. other of lots important the some to of few macro factors, We remind lived And peak of I us impacting lived inflation. think it's

in of the if our than While isolate And a X as of to our improve about changes the question, answer estimate as or certainly dynamic, quantum macro the do we've these dynamic, think to previous control. continued I that we to macro the easier some factors, more within and any impossible that that's lot not product. impact to things face. control we it's virtually it's mentioned think And of

lends that category and lends know Food we is I that itself the is greater direction not about only restaurants resilient e-commerce. and mean, think when itself I the towards that delivery the from meal convenience benefit comes when maybe every stems it while line all most to our in towards sense highest category, but of think first in eaten category. this to has or every category, every second, we you sure, that takeout, of the convenience. convenience, fact frequency true the be

the if quarter, that joined pandemic. letter even a those see single In during that our platform a ago our you couple cohort are cohorts every any than our about this you performance, shareholder virtually better fact, which talked at in just doing the way bit we of look including months little cohort, of

our I mean start cohort you the category, our of improvements on in that product think to we as customers just example, X fraction take relative of make the every than capturing see as of well the performance the think -- across And percentage in of what's double-digit final less number I a spite gain others across that that a we're shots get customer. And of we're addressable. line as behavior every of to the tiny in is, segment still and different leadership, U.S. goal every as restaurants you sales to the of time, of market I'd comment picture industry. fact so I

noticeable. we we if other all single-digit that you And I we're a the barely think looked included percentage. categories within restaurants, we're entered, globally tinier much now

have left. runway I long so think a And we

have think that improvements to work to lot certainly that to we've product be. the moments like to a made do us in where more up product would get our product the endures. these we We years But helped have leading it to a build I

Operator

Our comes Barclays. the Sandler line next question of Ross with from

Ross Sandler

ones, be ask If quick great. X that I would can

First, now, M&A that? we any drugs. the is community. that future obviously might international your from can -- think We're that any Tony, year company. How for the geographies into guys footprint. are on now international? Second in lastly, you integration. investment into about question to Wolt you it the there interesting the the keep Is air about how this there X impact way the you in the be think the impacting not an from there perspective getting lot well public future? feel Instacart clearly is on past business might Maybe then a do GLP-X a diet now. And is It's And

Just curious at get to GOV 'XX as here on you grocery any guys? we milestones sit of the from end

Tony Xu

the Great. one. my X take to let maybe take I'll and order them Ross, do in first I'll third best Ravi the

So international We're execution excited around I very question I the front. right. you're mean absolutely international. think on about our was the first

been any any of what is does geography. virtually is. with why that's business of still our categories I business or a great product order marketplace we look to a of you we I frequency room or because we've see continue what see world, size, our have fundamental why business, We and those our points international you to in left hallmarks in and new which execution. present. at have multiples around very where we yet grow We of have making continues at across the pleased that to the unit That And has investments And our of economics. And we're international lot leaning I characteristics see stem at occurred, doesn't retention mean it all see. think characteristics the think great from business interested go. at outperformance that when think But of the at the restaurant scale, these

ago a pieces. remind on I with thesis ourselves the Wolt, even behind it our big investment couple X we of centered years of if really think partnership

is way which they've hopefully and to frequency, behind the was that seen. invest already a that world-class execution business excellent of leading the and has and can here we add that concentrated One a question is, order retention in

And answer yes that. to been so has far, the

In are long fact, our certainly and runs XX United the population more also more and in, some is we a perspective. more of portfolio, of outside There with. was second from we portfolio too. ways There address. yet just where outside And merchant that the customer a to DoorDash from little we team the lot U.S. to perspective in fact some as of problems and a the given these is the lot a operate part is entire In partners countries, lot partner continue runway the that the thesis the we're for now well Wolt U.S. the we've Micky footprint. the portfolio places States. that, product bit adoption see there as a have that countries a technology are growth of behind in to behind penetration these a There's of

means you've seen there's to there's runway to the that's overall a lot but I now so the why it of it's company. also lot continued growth and a ahead. do, that of of And And work think adding momentum,

class around the I around of some think recent a your of certain second question was externally drugs. discussions

these drugs. I foremost, and First that work actually they hope

former worthy think and a science do big can of a meet I actually they're time scientist, great solving believer, problem. that I'm challenges a As whenever its the a

for the So the first I for work that foremost, and hope they term. long patients,

was to business asked, class a any noticeable to think commentary of whether what question is Second, kind impacts drugs. out goes the or factor, side this X in been I And first may see a be wind. relative immediate hard headwind, macro guess, little size this about the economic a really tailwind, that there we don't to, a any I it's of it's bit the which

continued make be macro that I of the play. we in our is what may on on just instead, that dynamic many our we product think changes quality I product and can at think product improvement And velocity, execution. focused the factors outweigh

Ravi Inukonda

around your of the mean, grocery grocery. the I we're with on really third business. performance look, Ross, question pleased

as verticals, really, the What couple that of of we that's do the new seeing right? increase not restaurants we is the Our well from usage? of are focus all fact, a business number as but driving ordering of both the of How in adoption business, And the grocery we're over users has things. do we the been our One is just last things, entire couple more in? years increase verticals. operate X in new today how categories

accelerate new seeing verticals are prior from the business overall the We quarter.

itself you business our asked, GOV As at has grocery the on to look the year-on-year. well as doubled you question the specific when GOV

efficiency that business, we've the seen efficiency the business. with If across you paired we've in look ton of at that driven a the

In improvement look fact, unit when the dramatic I in unit at a there's been economics, economics.

a realize have strategic we You of have to network a consumers. have because we advantage

of have at Dashers We to already built network a that's out, economics a pace. much faster unit allowing and improve us

us, look the signals retention. around frequency. business around at signals economics. way We at around For operate look is signals order the we look we We at unit

We continue all the pleased across very improvement with be X. to

improving behind long-term goal business that product us. be selection, Our improving strong to belief ROI is a is strong because is invest quality this our to continue going to generating for the

Operator

from Wolf comes Deepak Research. Mathivanan Our the next with line question of

Deepak Mathivanan

ones. ask to wanted Just couple of a

So the XXXX. for about first, ask to product wanted initiatives I

then trends common help the execution less second more it you a an 'XX? the use know, impressive. recent existing order in helping should a one, and scale I bit? What big the business of use cases orders of the lot That's of business refinement was incremental acceleration sort and first this the quarters? XXXX as the into frequency of is of refinement Are orders profitability, businesses? anything seeing at driver. year don't you cases, or execution in incrementally of and Can in new view like obviously, restaurant maybe core Or breakfast we some helped unpack XXXX. the of question. And as categories entered You a a are another for year pretty markets that's in little corporate that or opportunities And the maybe in

Tony Xu

free Deepak, and I can questions chime Sure. to take feel in. maybe start then Ravi, the and

about. question, some the first 'XX thinking which stems initiatives we're on The and that of

empower grow First, economies. our goal to to and is local

point be we're to always we solve we problems than, being where to done. at we for least that So strong jobs currently want sure solved. XXx however, a obviously, And looking better the do it make and problem view to is have of can

fact segments. a many from lot And the instance, continued the omnichannel for at, well, started we further came many that think has they the actually a came what of a give few help help well had wanted for thinking heard in I how 'XX investments other can said, to consumers of number looks consumers' heard of were with, up thinking clock years, merchant approached think came hey, way serve we as lot much third-party services to of DoorDash. And business how about other can there what solve. I to Again, even you the so examples. if of to or along as we commerce we which we are activity the our Many category, I as about the when our we today making set we customers is that products which we or merchant as think can we we we channel where started closely how could they Drive, their merchants, like you and about to a also Storefront, how as rewound problems businesses, is looked we that has core week, When DoorDash directly. I'll in started kind advertisers and show we their sure that the build of useful, become DoorDash in very all channel of about in quite XXXX, that's our think And we help it can And audiences? And further we many can first-party it build I an frequency local well many keep think, the were our start When that setup largest of into I questions before too, question, the ecosystem kind be to that a which 'XX measure 'XX, business. we you a more like I of this X highest way to pandemic consumers, would we help merchants XXXX, of was I where to everything the kind about you made else certainly problems. a businesses, things, challenges various because as and mean, cohorts all very, that which of the closer generally their with us And restaurants high-frequency certainly do that's directly. think really have for of X the advertising problems. me? different creation solve problems similarly times new business. And that's thought asking well. Is of where why and there continue but with were can doors as build the

hope innings, their believe the about even bit actually little complicated are each we detail, different be and a And as our varied a of all terms more it's we X operate to at can so solve. to business. But looking earliest still these able problems. opportunities up in we're at actually to solve because also businesses restaurants new X and that and we'll And deeply problems I more now audiences always listen more thinking to in level of lower the get of pick U.S. opportunities

believe really the Again, DoorDash, in this do always we fairly way. the we project. in think at I of stage towards appropriately a disciplined Now investing

believe way that we're actually in well of until usually, nailed all product to going bet for finding that an to we have do market we and grow, only small we it. fairly fit when so And go And as it's solving take concentrate as efficient behind problems bets. we've tend and experiments on, these many these we

'XX And we're so in about that way, too. that's how thinking

even question and I scale. think there's of your of that continued our frequency engagement this. think second drive lot our was the restaurants a customer around in growth current Well, in base I things at

to business, the we have is, we're on think, work I than whenever There of this efforts". But surprised of as well improvements to closer more at single seeing that's say, the program, to is actually least which that's the the be ninth focus, really, the the the businesses business, upside as about I instead, versus of selection, we've look yielding, to I inning results. support, some lot go that our led X it's And progress. to terms the today. talk customers, value improvement. think product ourselves added closer just quarter's we over of results customer tend well like to third DashPass we've way inning ninth I that towards that did how affordability restaurants perhaps thing a we're as doing we year to inning compounding that of the do producing of to to candidly some to you're the in hard the to what we're of third really there the years taken quality working trying when to I continued backwards "Hey, of tend making the think It when that think And product. our inning. And isn't that of think the the time. make effects in members work and more improved we the always that do in oldest think to happen our as the sometimes will can U.S. it's I think, much improvements service, But lead results progress the

Ravi Inukonda

both seeing international is large, it's by that is, on side on line. strong line in verticals just investments what couple of to operate seeing work or that the well investments on had What thoughts we well seeing we've the growth about. really what customer investments as so made continue that we bottom being to fact, these new of we've the need product last Part driven as all whether across and categories made, lots as we're mean are we of I of we in the a lines Yes, improve. the phenomenal that about, to the as a add years. over in business to in Tony we're Tony really as we're Look, of operate Deepak, talked couple far, maybe there's in. all problems, talked year top

will continue volume we goal we economics, to business. really as this long for philosophy in Our is flow on us good years well the drive unit as invest because and many signal both to in see as the our cash to come as strong is free blueprint

Operator

Josey next Ron comes from Citi. Our question of line with the

Ronald Josey

Tony, continue year-over-year sequentially. bit and to little take down They a ask roll wanted a I about bit little just a basis. to more on rates expand

a on bit take Just little and/or talk rates the progress just higher. to making more drive you're keep

how spend, So any see comments some around Any quarter and a times, behavior where layout but incentive a change you've and of app quarter then we're new in progress grocery you DASH's rates go? around heard might fit that into app take that new advertising there? wait the prior, insights And in from now the on we're in? now seen

Ravi Inukonda

at one. we well seeing of lines underlying chime the not you're of across across the the net output business. the business, to Let What a as the business revenue P&L. margin of rate look really increased take me line has specific seeing the in various is, and margin of drivers mix sequentially a is are on you the on then mean, year-on-year. if on take business first I'll lines the rate you're second let let shift as of various alone the actually X target, margin What side the take Tony actually managing any Look, the I on

an result reinvest And contributor drive of we a starting we do than continue international the comments right. always this exactly rate lot quarter, take the perspective. That how efficiencies We business, recall and that seeing to the every earlier, take you're shift journey growth, terms the are you overall seeing that you're was business. made drive to efficiency our new as our mix efficiencies P&L use impact continue from faster in did the efficient line in a growth of business. their X that of goal you're restaurant to those gave using to upside is across said, business actually the some of that early And accelerated good in revenue to to same seeing back our we find that business businesses, If found the still the verticals, which in growth. that we the a which of in growing really to of is

Tony Xu

each in was each and terms we want weren't meeting think the before fit demand experience sure that evidence the it And they terms that wanted because mean cheese where vertical guess, of see be like you think naturally we really this you categories. And of pulling we across changes. actually showed market in them consumers them, of they reorienting drivers the that terms such consumers we think the was the within opposite app, that my consumer I this a, to pretty were that announced of of I behavior, our make usually product actually entire robust changes instead, see, behavior actually some whenever progress of of given where but your were this summer. X change naturally we that second app to I get across that rare app suggested that made the continue it's to about And fairly upon we saw who I line consumer different moved shopping business. question a to pushing was X redesigned we rather earlier customers like achieve more to tend the something that given the level to in we our were sizable of reaction. it pretty And made that that to suggested we they I confirmatory us

the many categories before, quite with across for category. to restaurant We're and interaction numbers many different seeing So tends think increase. naturally continue customers DoorDash we -- the the as first seeing, mentioned these those continuing outside be to I sometimes actually to cross-shop consumers, have of I convenience, alcohol are are them And grocery, the of half customers the first that segments, About outside of look are of categories first. coming look restaurants contributed are for factors e-commerce some to you in to at when and time. the that adopting that fact you DoorDash these

Operator

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

Eric Sheridan

on regulatory just for a We've to overall? continue updated X that thoughts how in potential on Maybe how and the York quarters thinking City the regulatory New on topic. environment ruling compensation are broader in Department investments a Any the of investors play seen ask out. And a lot about might ahead? nuance environment about against the in Labor aligning you

Tony Xu

Tony. to Ravi, Eric, start in. and chime free, Yes. it's feel I'll

because regulatory of of with general, companies want of work ago, like they -- lawmakers, is work Dashers don't you have Dasher platform of come tens on that apps really what they time same about the that, consumer why actually do Dasher app point simply by regulators, than co-create, Dashers earn future come think month it, that and had X because the to labor week. to governments, store ourselves platform of XX enough fewer of the have is even millions in the large, over or does full-time the fact Dash full-time we if we a future to or percent landscape today jobs reason millions hours and they to downloaded the shockingly is our think they over of have. XX% of hours I every DoorDash most X the The which think, X the And be. them productively I the as DoorDash to view XX years on is will actually week, XX-plus the Apple from our average have come jobs. a single iTunes

And DoorDash income they living. between income they so today of really the cost to as what earn earn to they're seeing hope that bridge and meet the a

York updating understand like New those day most think in might or regulators -- to there Seattle. consequences I X who goals. And this actually you, go City our will XX to still jurisdictions, of always discussions, achieve and instead, and we been counter that's but it Most -- has when which that of so hypothesis favors just policy legislation this don't their again, and paradigm And work we kind productively work this of kind want be that that views businesses regulators years legislation think We of But new probably proposed our and regulatory is original jurisdictions. handful want lawmakers the count with of our ago bodies. I governments, similar of of to see is outside point, that bad think thing all a the and activities to Dashers. hypothesis, companies with handful when DoorDash do support a candidly to unintended productively the policy right create up for

Ravi Inukonda

just Tony do not year the add I as from is everybody said, Eric, like That else. point, City, couple the We a judge one, expect X live to New of back to on well. just at questions about York any gotten this look we've what yet.

of as Tony we across included in great ruling for think for to goals the earnings transaction guidance not that going our in foremost and it's be has and New York priority goal from City system. talked perspective economics. internal sales Like lower changes financial well to respond about, the we unit we've do the extent the goal is from economics, any to Dashers. And we increased unit first activity the reduces these that to every there's have some and been as lower realize just given. how operate To are philosophy to do meet because Our sustainable market don't cost able means around EBITDA drive impact in always efficiency because merchants that in is ecosystem, impact we that ensure QX, the we our our itself, in which we've we

to we've range that about. the manage business talked to be is within that goal Our

Operator

JPMorgan. the question next of line with comes Anmuth Our from Doug

Douglas Anmuth

macro, geopolitical. outweighing are number some of or we either but volatility factors improvement product heard call early from companies macro XQ that out Recognize a have

can your Just path curious quarters? to little there more anything all has about at you think improvements then, can that And get in if Ravi, about GAAP should bit you changed just talk XQ? upcoming we how and a into profitability

Tony Xu

it's greater not fact and just that delivery, scale. X but at when the out efficiently have also trend that, can lots puts I the have has the continue things that improvements second It's convenience as the you that spend -- I every macro that there's just to the in increased hard question, think to to the think has you in. Sure, these execute spend on helped of think And increasing globe. that you and free across our there's world it's the product each question. with first of at convenience. I X Sure. category to with again, helped chime and everyone takes, to feel And look on take what going With there's the spend, way I to all Ravi, it we of in mentioned, to tend fact to very And these when I at direction and dynamics, also that don't today, we things. see size rates start sum and food really, things. macro and I respect economy, think, the is events is on you really of grow any X that certainly think argue even X of the it of also up other in higher when may

just And the consumes it convenience. times frequency they to And XX a so do more of has with tends opportunities someone highest spend, someone some dollars that given also start seek the that food to if category there's XX to where to week.

itself dynamics any activity industry have highest as seeing X but that multifaceted. obviously not least the decline. fact frequency. I well. XX this did commerce and we're can spend lot think, think So you at think categories a e-commerce, years, people seeing, for that therefore, And tends and the perhaps of the some the to in there's restaurant only years, other improvements There's see of macro which you product the U.S., the resilient where it's to, that food, past mean, has it for I the the are XX on in out ever of I the most lend in towards say it's category the I really

category. And perhaps restaurants earlier you I people gives or sense the service of categories, than where suggests. where merchants robustness category the a the than at I think affordability the our still a we of And this that means in and our quality whether terms of not support. the lot that our to need the scale selection think so new it's of in it final we're the program, of point we're And is think of are, be customer then

We areas. to in have make all improvements

Ravi Inukonda

at look closely. mean I'll lot Tony to watch on, second have more a touched in I the this I a that few signal we I When strong. question We just Doug, you what really mean underlying talk and points of the then the they're about very business. obviously cohorts, asked.

If I of and to at year, stable. months actually just not continue the very first cohorts look of you look improve, QX, X the at retention, performance the it's but

about continues fact, in we like at frequency, are users, Order digits. growing earlier, double Our to talked grow. our scale

point So pleased your we're second lot itself. of and in of that the seeing GAAP profitability the we're business around the a with strength performance business. To very

towards. international net business, economics we managing long-term overall well. we're verticals cash do and as maximize Financial to restaurant We've target every business unit is today an the becoming income business well to the seeing be mentioned every the line dramatically more is GAAP As new happens, I business of before, positive you're as we've business get do expect always in be business. as as the our the of efficient. driving time. net income what been that that to single towards. free and And that's across going explicit over the when the itself business business is business. has improved truly But flow target an is not the explicit that we in how profitable And not in GAAP are

Operator

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

Brian Nowak

you of the about wanted made investing I X back comments where towards stage product. the to go earlier to talked you appropriately of the Tony,

So that what faster state us on that So year can 'XX. there pressed a really in this the of beyond? in grocery what can would later, to we the are the we I'm this little longer investment X of could and investment be think give some maybe you lens? to are that areas about that I -- in an more year you come of in talk okay, on of the made that you drive based areas just through trying for more bit grocery? 'XX hardest to where areas examples product for get investment say, And business you've understanding do

Tony Xu

the think flavors time the okay, judgment didn't because, Sure. -- it's And about is really coming frequently. was hard foremost, can apply mean probably is build correctly first sustainable a and frustrating the consume customers. And product For we many project. of delivery question we many of solved, phase something I instance, the took my left or what's while we I -- perish few and the this what's X certainly there because the build. time, X instances, take on, most do spend take problems to create made majority what to product And the correct that perhaps initiative we actual you grocery to order that be choices fastest we example, what a the reviews, But consumers from heard, external is the grocery either well, on is think mean, every this really business. of to but I in that of beliefs first the on that as I depending of right? of grocery that of was, that I really for view right the things -- were items our which we have the to

and get for eggs and week, weekends middle shopping it. annoying the big the things on really the your into somehow berries in or other or coffees. It's your back out the buying I'm types about of go have a other if your less deal. I'm and store your to maybe milk cereals or think or it's So your of behavior, go for Whereas of anyway, already the to week

surprised And the had really problem we a heard. And I to smaller use first large introduced address the because which then actually case, built I ourselves how occurred. investing opportunity of been think solve think they into. product to that so And to case was everyone introducing byproduct grocers, basket we've topic this consumers helping hadn't that ourselves use a that was a then and much it too,

correct I everyone So look version think of engineers and of just and start that's by building like doing, and do out the foremost, we we of first X at And other this, is functions the therefore, that's potential. else the kind team's get what is before product. which of lot business has correctly correct on a implications product most use people and the building

a I version of think up. there's that shows

think building number came grocery spend really the would while marketing didn't we it I to another be, business. example when two, much on

to well, as audience don't local customers as some one, just of shopping the and reasons app those have largest of kind including app the echoed we Now well shop. that to why Ravi our coming the coming of because, do

a of we yet. instance, there. didn't wasn't the a had marketing also And same want bit invest product so because benefit at in we to But enough the good

efficient then question where kind think I the are of the generating most think your is efficient think we with advantage going call an thought how foremost, the an sequencing something for large well, an I in if becomes, there's there. And maximize And right then to the we business that it. dollars to there build starts we're on that's about for out things. examples towards a very we first to so have guess, would grow, you will and And right of not And and opportunity correctly, think and being something building total it better, run. XXx whenever problem correctly. finally, path way And that's customer the then how us, going we resources. And have solving that go make see solved use about to X, cash what's to make long the those I I the call flow profit of to we're

I in good these we've bets. think of a lot so decisions grocery and far, made

decisions. results ways of of I middle in you're quarter. think some the go and have keep combination a of the But we this to impact to good long got the or making seeing we've

Operator

of comes line Our Michael with Morton the from MoffettNathanson. next question

Michael Morton

the Tony with then questions, for Two if One, Ravi. can. second start for and I

to retail fact about also business? How On in who now a moving there's feel QSRs, In grocery business, demand your into of that our media to with serve the advertising of grocery for networks goes larger the ability question. lot conversations sophisticated because concern the there. there's do following kind CPGs, for unit a growth the -- retail advertising the incrementality marketplace up about prior of product's solutions, but the you that some of enterprises kind not

advertising. So market whoever wins incrementality of for like measurement the can kind win the

think levels leverage. about impressive for Really you how of product to curious So your operating then second Ravi. there. And just

Like level we is some this drivers hitting if the attrition there? maturity, expenses in if of the this behind be of operating kind base. a natural forward And is and curious might employee details change of Just philosophy type like going like it? about some think Dash how could maybe should like maybe

Tony Xu

first to our driver really So that's or I robust and advertising that operations to incrementality is is there. question, premise most the to the spend. I why, think I agree confuse research thing which with return that incremental on the did, most and sequence huge view of the you of customer build your least business important highly about marketplace is And a the on obviously, advertising order my biggest ad a not the building company's at view and is of think

year-on-year, perspective. than of doubling start, so that's choices marketplace the there's to a And a I when is more think in grocery to look, growing good our But other lot advertiser's I an business from mean, work be done. relative especially

demand especially a the think where ours, categories. I ecosystem coming and also I they I think, our think the excited even We're addition that opportunity I our recognize a see out of to in across like advertising at seen. We're about, about the more have excited long our amount go scale, in product building the we've super they is to growth for think into different ways we product. growth

And merchants, whether in restaurant as enterprise as from both well in category non-restaurant the of so the it's there's a from excitement categories lot or advertisers.

But effort. the think And so certainly of about advertising, I all been we go. we product that's to not of it's a with more pleased our we've with X.X-year Certainly, lot in got a We're do. to products. are work usually how we where lot a feel got

ahead. a the I desired I think some Yes, have we long advertising think, online most already platforms. very road I of very, think amongst, it's

Ravi Inukonda

leverage second team's pleased Mike, right. really on mean Really on your proud of you're point I the efficiency that mean the the the with and execution I in you're seeing here. business. performance.

of top been quarter you're across for unit discipline has lot think row. point, have as relatively of you're on us, ahead, unit sales drive are there And onetime has as further to last we've look, QX. volume XX%, us the also see time structure mean, line, QX I a economics. well. outperform in that of things helped we've in is us of to a grow There driven you're the continue the helped a you to our was a combination One, I tax that or mean, as to is couple single the lot well business. quarters The can by a as look that. Two, as business, not goal the cost things given expressed X QX across seeing that seeing expenses. I operating general, while couple well EBITDA expectations, strong as the board. really seeing a that the Every business across that both strong as we're it's in a we've see, in unit north Operating said, done to that the guide continued economics. QX leverage what line of same in but that of your That around whether things. the fixed I was in the you in lot leverage cost seeing business economics frame. of being improvement our upside of flat of over revenue a is the in in But the could around A team for just expenses, XX% benefit also leverage continuity continued

Operator

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

Michael McGovern

a cohort on couple the Just chart.

is If a these little slope slope even as after GOV in trajectory seems the Covid you look for spike. the at some of cohorts the cohorts, lower though post-COVID for it pre-COVID Marketplace bit steeper than

So non-restaurants? cohorts see seeing more slope Do confidence curious from newer you gives growth? from you kind what I'm you in of that that same users what to then contribution curious post-COVID the newer older frequently cohorts? in you're And ordering can versus also get nonrestaurant cohorts the

Ravi Inukonda

Yes.

the X cohorts. to Like one, those. Let every XXXX me cohorts takeaways of actually start second the at at is actually chart, single least going as X X the continues cohort the grow. look take right? if annual is, chart I years. the at you still look mean, back as over the I port on And I'll that big at both

the product operate underlying best we the see the continue as that to COVID. Jan second some service across the cohort, only in the we've of In we're the seeing second that fact, are ever continuing it's the quality cohort cohorts from making strength in. as selection is to cohorts improve What the impact 'XX are better levels had all you we had, obviously increase, to which we as

that bring from impact in the do overall restaurants is being fact, older a And users use cohorts that which that frequency we've back, single for or the than order number are many it helping continues to overall see cohort. Again, frequency as well new about of the entire is reflected both product frequency up. the what base at level new How rate. a order out to The the on do When of how verticals, cohorts seen as perspective, verticals, double-digit is cohorts We're way order cohorts in every the restaurants to overall business to behavior starting new we well quarter. them is, users very both as to are get in going more second starting we're higher at engagement drive the to that's trying contribution is at newer the an newer from just lifting out. we be clear, verticals. order the having think starting I of which drive that us your increase is of The what's frequency around users user point number as up. that's more, use the restaurants the from we not the the look

the In the very that of strong we're progress, seen fact, mean, last you've contributing I couple to and years. over with growth pleased this the is

Operator

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

Andrew Boone

pull about your in of make for for then the past wanted to to out of to levers have out share times you to cheaper the question, you've responses. back my It acquisition couple can But ask be there wanted delivery costs. marketing. acquisition on I specifically letter. grocery customer consumer? customer I What go a mentioned second largest the DoorDash's higher? to and is grocery costs guys sales continues operating awareness be Dasher to are expenses continues you and costs Tony, in delivery elasticity the just anything to cost very the I you And called efficient. understood as

Ravi Inukonda

and Let right. Yes, if mean, second you general. of ton we've were leverage on marketing marketing. a And sales first Tony, me in seen X the take and one. I sales take you're the to on the

Dasher. biggest of of areas One is ton the where leverage driven a we've

starts For us, Dasher side it We've the of with product. in done We've the on whenever redesigned always years. app. ton last business, over we couple the logistics a the think efficiency about

Dashers seeing by up. it it go on what both of retention, own dasher combination well things, have by seeing opportunity improves go The We're We own both Dashers the to levels the that as on those effort. improves frequency given time engagement side. We're of up. is as does retention order

P&L Taser cost. both as on pay we're leverage is the having that's effect as the Dasher on seeing acquisition well The

acquisition, the your when we point payback around we unit are operate consumer seeing specific a to business period, Second, to healthy economics.

We to are unit continue grow. seeing economics the

comfortable with we period, as to long is user drive payback As adoption. continue goal to our new the are

see growth overall acquisition. the still driving healthy was user continuing is they're MAUs in auto fact, In levels to of

Tony Xu

With few lowest respect all in on. there of possible the detail mean be lowering share I quite to I dimensions. second do are I starts structure cost -- question much probably your about to create there's obviously, we're won't about with, But the involved. initiatives think able everybody you for delivery. of how a grocery it the cost working

do the continuously can obviously, always we what of of that want all the the we cost can agree degree the I lower we program. to actually think have you lower to to If profit total all choice that, way drive And dollars maximizing we the the then there's want the of and especially cost in greater I program, business, things, adoption long think in for that makes still too. greater we sense it so engagement to run. But that when can and other comes a

delivery as hopefully, have. their also grocers just for expect should cost us been continue continue through their they it co-creating And first-party channels really DoorDash, to together on challenges different well. just interesting of won't that to the solve all and and the lower grocers you see businesses built but so in-store And for to on haven't of work yet with grocers that products

Operator

for thank There concludes call. now to speakers all further today's thank our I'd today's are for joining time. and This this no questions like you presentation, at us.

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