DoorDash (DASH) 15 Feb 242023 Q4 Earnings call transcript

Company Profile

Participants

Andrew Hargreaves	executive
Michael Morton	analyst
Tony Xu	executive
Ravi Inukonda	executive
Nikhil Devnani	analyst
Deepak Mathivanan	analyst
Bernard McTernan	analyst
Andrew Boone	analyst
Brian Nowak	analyst
James Lee	analyst
Mark Stephen Mahaney	analyst
Douglas Anmuth	analyst
Bradley Erickson	analyst
Kenneth Gawrelski	analyst
Michael McGovern	analyst

Call transcript

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Operator

Thank you for standing by, and welcome to the DoorDash Q4 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

Thanks, Mandy. Good afternoon, everybody, and thanks for joining us on our Q4 2023 earnings call. to and by CFO, today CEO, Chair pleased Xu; Tony Ravi very be Co-Founder joined and I'm Inukonda.

our financial We'll today's be economic operating environment. business, the call, during capital performance, position, including our approach making expectations for broader forward-looking and guidance, strategies, statements allocation our

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

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

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

being call be website audio available after our on ends. website. An our is audio call replay on this Finally, shortly call the will IR of the webcasted

take back you, it pass we'll Mandy, question. and our we to can first

Operator

[Operator with line the Moffett first Instructions] Morton Our question of Nathanson. Michael comes from

Michael Morton

of hear First market one grocery to what Tony, thoughts your for future the love Tony. And would on structure then think a Ravi. second one looks I for you like. the

of advantage Dashers. demand to more how more that order also consumers model in That you picked some love participants kind the and As industry think you a on growth Would plays might with see density evolving. increases see level, your store like see the to speed. merchant

continue slowed lot forward at then a have marketing And to guide. like Ravi, just you talk marketing? sales a the fourth then order to leverage we the looking the a the leverage and little and bit ability quarter it in per basis. sales on to might a down seems tad about and of investor It on get opportunity questions Could for

Tony Xu

Michael, it's Tony.

terms think grocers think what affordability what you're order Regarding don't I you things x the the terms go mean what going grocery, is several do good can exactly they I going to it, if in They're evaluate customer trying they how get order your customer. a of of across question really is customer on about and service order it for depends to in that is to happens it the perfectly. build if dimensions. the evaluate especially quality they if x from obviously, those support, with items, items, of on

dimensions, on And we're those that. initiatives towards and always so always building judged we're

this still really And a is lot nascent. of

really use coffee, your If the years and week about we consumed are top-up you think where often, items about into happened berries, ago, that which your by et the we're this products, run X delivering the your the solving case, nailing space, DoorDash's grocery cetera. most entry dairy cereals, started your middle of the

shifting a now of solving was baskets. concert lot bigger We're with that fantastic work of All the in grocers. done towards

solving so case use for And is just that the a for consumer. different

groceries to off-line grocery, where because look happens And are still when inside structure I too, do the stores. consumers at things, for think to also have we're physical behavior of I of other going just consumers the purchasing most

offline replace industry, we to tells that good as product still long have experience. an a a can to go the that enough so it that me -- And such ways getting

factors but for we of dimension. there's where can of make we those other is going it's that have Speed one that All be of to of this well. grocers. than is one to get sure be right just done in as we this more kind solve things, concert again, to with And going want to continuum

Ravi Inukonda

on into X the right? parts. marketing, break and it on point sales I'll second Michael,

QX had the and about Dasher generate the in about you're us that largely QX acquisition. to from The is QX forward That continue leverage the you to talk to cost QX saw support to acquisition. some able Dasher we be in acquisition we'll know, we a order seasonal supply then on First, as, change the purely expect well looking, talk that QX consumer QX, that to did higher for there's growth to volumes as to in in related as seeing effect what we XXXX. to QX. was we in

leverage right, when at payback look frameworks X payback within we like maximize overall of is periods, and continue sort One sales As and is goal I about to a be are to the think it, from to our I period. here. marketing perspective, trying

You're the not consumer of the periods on dollar side. investment. the looking payback still at absolute level We're within

U.S. We are DoorDash. new Over still journey acquiring their in of consumers the today the start healthy a level half consumers. with of

be to continued way going that's growth. continue us So to for to drive a

side, think so the done the continued second done from side I drive in improvements it's to in is ultimately What we've product. when On we've retention. one, you've Dasher last product. whether overall the the starts purely the leverage, it that on -- or about year improves consumer or

overall start up, the see and As perspective you'll goes also. benefits sales to an from marketing retention

an at XXXX, leverage generate sales look overall we do I from expect marketing. to and when So

Operator

of the next Our line question Nikhil comes with Devnani Bernstein. from

Nikhil Devnani

the couple, outlook. had I on please, 'XX a

points on looks into few and more QX you're So year like first a GOV it the for then for the off, calling QX of deceleration, guidance, broadly.

that's in a of in restaurants you U.S. that you're marketplace core what please segments? the So reflection or that might could trend a seeing consistently Is across seeing you business talk outlook? be driving that the about

on question, EBITDA the 'XX. ramp the back think the second half the for mentioned my in for then I margins in And year, outlook a letter of

Ravi, specific investments this harder is call the that out, can first be you you leaning maybe So half. something on in into might

visibility and meaningful the the half more margin into improvement year? back drives the what comfort wondering in Just of

Ravi Inukonda

years fast first the of I the point, we've can X in you're MAUs, even On frequency to record at growing driven been grow look, double-digit all-time is as we We've public both parameters the business a growth consistently Yes, set one We've that right? we've disciplined Even minute, million, Nikhil, rate. I goal growth for the if our grow. What just us. $XX on now. they're ourselves. overall quarter. our mean, seeing order look continues is within single I'll as our right, mean, for strong back up is scale, at which to to for take every an those, you at a hit

once side, users the on active order still app of everybody either that frequency portion opportunity opportunity platform are show last or in of us. the the who's the the goes That users ahead just the at look at I breadth you the When the are year. the to small on of used least a

the increase. in mean, about on is if are side, that the I as the order frequency business. business we we're the you're all continuing continues is usable to drive affordable the very more are the adding order we blended to have, still you Similarly, What making low that especially compared as the quality of to seeing product the categories think we frequency selection movements in number

frequency, whether it's to come seeing continuing that are order retention strength grow. or You're through, both

strong that we able is the across drive to we're product going new make confident continue I'm Our very to be as goal well to as as restaurants, better, growth international. long as verticals

if What the quite the Nikhil, business. nicely of volume performance in around We've to of 'XX it look, the year. things, been second profitability generated We the we've saw And the again, you pleased scaled point years. EBITDA, is over last at you few right? of very through mean, a I with couple improvements have course the look

half across similar higher you economic EBITDA, in we what put well. improvements unit of X all driven prior EBITDA as those in lines you the When half saw which have is very than year 'XX saw being the major to the We together, second business. first

to expect But the going improve of the and with our operate rigor same the more level EBITDA at trying be profitability than goal where to discipline being second is importantly, higher the the the similar, going time, be business. I philosophy we're at first the of very When to I look with would EBITDA. growth half half trend durable the is to same the 'XX, business and drive

we And in our strength seeing in to half, the first second I first half. business. national we're are strengthening are specific strength on the mean seeing versus half investing the we're factors around seeing new verticals, we the are, in investments restaurants,

the profitability that see as expect as well leverage can results. those generate to a perspective. second I a growth in half. You from investments both do in the

from the of unit the improve, the would volume half And see full first be margin to to margin secondly, half And EBITDA half I as to second more to plus you have you're first perspective, a continuing well in half. if second even year. than as economics versus the higher going continuing the expect the scale,

pull EBITDA b, profitability we and for overall the margin we considerably. because, to a, driving just right, guide driving minute, back very But year I'm pleased full a improvement improvement; with are are quite

Operator

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

Deepak Mathivanan

elaborate you business what Tony, or you these you these saw terms the how the even convenience years? new of about and the if kind think X business of see restaurant in international and scale areas products, the we maybe last should maybe can contribution of to to investments versus verticals, as core on margin X over inside I the countries key in wanted curve efforts, initiatives of

to drove high any end the the maybe the change XQ one in perhaps aim guidance X maybe X would of couple Ravi. EBITDA, you don't you as then On anything business? Did the of for investments last months? of beat or quarter, sort I And out Or higher of always the margin in initiatives know observe consistently. during call you that trajectory the

Tony Xu

Tony. first one, international and also verticals. is which Deepak, take into new into it's investing about I'll the

across efficient And to more the the I and we is are markets, certainly mean, that be quite investing say, majority say, of they our more given I So the way remaining in to are which would on former. board portfolio. of serve lower is are in But are board, similar about of then the still fit markets levels lower, in I certain low, penetration an the grow. U.S., the really market consumers we that but the latter. finding is product international, than have well where merchants there to see. runway framework, finding as as younger the markets And a with across the really that even coverage can would we where fairly it's about the in terms we

or that investing that whether we we're search sure of about disciplined unit economics. that you are growth market well both case we and and So efficient in retention making which as it's really in in see improving scaling product nicely, are an in across quite as fit whether improvement

side, X yet On on the That's row. I think accelerated vertical mean, quarters convenience quarter really a of the I growth grocery, DashMarts, continued another mean, board, across a retail. been has the just strength. investments coming this has into base I bigger in new now the category, from

we're take in and So levels. hour our so much products are unit don't There's the that quality within service of selection to lines would the seeing work service, that growth, we of the I all -- of the them than to improvements to investment probably offer, on. of support major better we're -- that the really, affordability lots retention, economics respect with But areas. the working all more the customer discuss trying across

Ravi Inukonda

around it's Like the business investment right? is new when in areas. the question, really we're across both as across -- I'll seeing extend material there's improvement, as side. margins the vertical take just Tony What I to we on start the the then Deepak, step and a at I'll strong question, unit point second function Ravi. your the well performance, side growth, look the been international economics, change but not on first

the the still lot at core are restaurant and of structure. as for of question the a actually overall contribution both business improvement I there specific is countries international if margin well positive look business, where contribution basket runway several to growth in the our as And on margin, your margin

What point, again, I second performance the seeing grow. great, around QX, your we you're call mean was like that volume right, is out. specific continuing to And nothing would Deepak,

drove top grocery verticals, volume new accelerated QX a in the be in In line QX. QX international fact, what also volume and where bright was That's the compared to the continues very bottom grocery QX. line as accelerated on both to volume strong, QX. to seeing spot the unit actually improvement. in as basically performance also economic we're compared well

Operator

line & from with question McTernan next Needham of comes Company. Bernie Our the

Bernard McTernan

just put York through minimum you wage. I increases. some City saw to start price New Maybe the guys

next how you then over guys is the if think the X subs in 'XX, And I benefits years, it to you of 'XX, X been contributor wondering year to of maybe how and or Just it's year. early X you big impact couple And million a math Pass the or can XQ think in a expect Dash on any if million base? commentary get? Wolt+ added DashPass do our right,

Tony Xu

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

business. most to that is DoorDash work want has work we've XX most it by we for and of large, governments to businesses, to we that similar to the work been is trying audiences. for mean, affordable actually with something to order the year it prices to Dashers. want work is fairly and see the want And us years most work, number they We the question for understand on work We're like DoorDash, for and to keep in local how for with to regulation. offer with way First all we want I we've that landscape maximize sales which always the building consumers. in opportunities seen the every

places operate in this The vast way. of vast, we that majority vast, work

has are you policies of some New called I one City, takes I a of there think the adverse of kind that extreme. handful And York think out, to which markets, had is regulation it in way does wishes, enter system. whenever overall see rise City, New like you the its impacts York a you place see for which cost against the what is

So are consumers, less costs. there's to about -- there to accessibility your point rising

think be sales fewer businesses, are which don't like that of lower reflected together ourselves. for with in for is will local there terms taken in of to And all have a how the guidance. policies. in fairly of much opportunities cities handful are extreme majority companies There central there But working expect work about We markets that that vast they terms of and impact, vast, financial we Dashers. change in are our the expect largely of

DashPass well. DashPass Wolt+ mean that mean, order as This DashPass terms includes your I was we saw a think second year I question a I its was around well membership of in frequency had it great record year. the with subscribers. as as

DashPass actually we internationally, fact, In for double Wolt+ in saw the the quarter. members and

mean, we're month seeing certainly And quite of cases of consumption, so XXX a the lot use those for for think the categories average there. every terms possible about best I their per mean our subscriber, eating strength and and in I a we're consumer way it Even there's buying certainly retail. for or whether just in is, of use cases. the customers fraction I that's

be certainly think base I would healthy. fairly we So commerce, far. subscriber case can think when if every about I think I runway, use local for the it's the And serve quite

Ravi Inukonda

Tony's Bernie, York New it's City. Ravi. around I'll point just add to

absorbing as we we of the in we EBITDA the down costs can that overall to from portion in you your point take guide, in as as a of And QX As the ramp it's some expect business. well again, the do second marketplace. are QX. the volume volume, regulatory around I on other impact up ramp to small efficiency actions see

to volume on would expect impact be So the I very minimal.

Operator

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

Andrew Boone

it what to you're help verticals selection? consumer go DASH exactly understand understand more on guys what or is it that wanted improving Is in doing. such? international investments I Just investments around are doing. us directly back you the the new better tactically and the to Is

called Can overall? for press out you progress and COGS. release, the are you costs where talk And distribution profitability just first-party increased about with then DashMarts you in their towards

Tony Xu

to here yourself, the Andrew, launched So Even over U.S. adding awesome dimensions much XXXX. which We've lot most the I selection of which I Ahold you question. in -- pretty us, mean we're in year, think this all consumer I retailers the right? recently with ] platform. launched we're [ mean, answered investing is a we in the a judges

We're certainly work do the helping and the to lots of there's service, to there. affordability improve of

mean hardest inventory on it's on the We of is how is we're are the physically think grocer that the I always in biggest shelves. sales challenge or they get quality why of better. And I have digitally that faces, much the working is terms support sometimes terms to shop trying one of that to improving whether And knowing the every customer reasons consumers of prefer in stores. and service. inside something go

categories. it's verticals across but there new look I penetration also restaurant a more across just it's not mean, the it's the of terms I in similar, when levels. sector. lot And We're just retail, It's or earlier internationally,

more to launch. We have a places have we lot

have more and lot a sign have retailers We up. to restaurants we

a launch. in our lot programs we're make the subscription do we we in the to I better. mean And far, in then the terms of but have early We very terms adoption that great countries. more have so always seen product work can sure they've to of make launching

Ravi Inukonda

take Andrew, where of DashMart. really years is. in. Yes, with across the we volume the ago, a density have expanded I'll we we're operate the the question just happy mean second around markets couple sure all make look, to the footprint We've footprint I that

the better fit. Today, our market focus same-store driving sales product merchandising, continues continue be to growth improve to overall by

business, compared pleased. have the mean, you look well frequency. well retention plan. really It's the performance at as of I When to We both we're as order doing

material improvement both to where volume improve, that as compared economic drive well to to as a, seen is to continuing goal year. in continue last business Our we've the improvement unit

to unit as as while economics going priority business. XXXX, the keep As increasing at in well existing I to driving is that footprint look be continue our volume

Operator

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

Brian Nowak

I X. have

you're The one, Tony, I data-driven. first of sort on investments. of prioritization very know

try or at in and the you churn first And the more to you of to When seamless talked of letter data, in the to so of you when verticals, about new drive any grocery driving or what are study the look really adoption the wording strong continue want sort you adoption sort negative of pinch to more points solve want don't you experiences, back execution, XXXX? merchants, Where holding sort some grocery see? is adding to pricing.

Ravi, one, "a about, answers, on called change vertical second back the you we And economics. step function" earlier new to your one to of talked go unit

Just the which of economics the and any color that drove on step of areas sort blocking sort of tackling the in in business the in change improvement of year? unit

Tony Xu

of north the are XXX,XXX first of to the that barriers to I Brian, general I in the outside customers category mean things America. we well. but which going saying there mean XX% would stores adoption, are for the nonrestaurants that all North of now think are have over start on our be I with to in pretty by plus we're restaurants time. a platform, few, estimate that respect are I largest ordering in of we

and consumers time grocers, are in retailers restaurants. more first on even category grocery more more More ahead then of for coming and the inbound, DoorDash and shopping are the similarly,

what this think knew it. case, top to launched with to People invent, lot and So had been really lunch DoorDash goodness as dinner you think a centered see. I on on, which about that's think really of quickly. the we very effectively there's use that's that And get we if fact to centered about place a of if you

of But trip or week usually a eggs possible. get fast this run the to that fulfilling you or also you And product want as of berries, be the physical quickly. you we your launched yourself. cereal done as can inside store something run it's When isn't go to so done like most middle your where out

so that we've well. pretty solved And that's something

e-commerce. of the digital is categories At or if And the the pan lowest amongst there's industry, look same think if of time, I mean, of barriers. e-commerce lowest, grocery still penetration I not you out sales a mean, at I across all think there lot are reasons. just the and many I

There's grocers you make you barriers their not that do that their challenges look how knowing whether I can the you exactly it's it's have, their stores a get what inventory how through to they other is around of wants sure much online delivered channels, that First mean if affordability. home. or actually at customer physical one carry.

to largely when what to store think pay inside they expect I similar delivered. they pay the get customers something

I consistently hundreds mean And of when dozen service. that maybe launched and selection, pretty We that's we're a stores. of our ago, of with were it's just when with of working look towards. you happening actually X couple that's thousands something at the years hundreds just where rapidly we retailers now in working

a I remains to So bit the think dinner take has that people think I get a most is very going -- to a DoorDash in thing Wolt country lunch mean, the and the it's final or of in I delivered. and world that just or know time. place

takes a to everyone delivered. think it made your get some time can get certainly on grocery. to that bet I We've know priority city you

it I from it's well. we every X think numbers about, long the terms but it's years retention to where excited as the it think economics. paid to day a But multibillion, just in I we're I off see unit into mean, well growth, went ways we look, of in X improvements we're beginning. really it's I which go. as in mean

Ravi Inukonda

Brian.

in On businesses start is the like things more that Because improvement of second that the the economics, by step important we and function restaurant drives terms these scale of as in saw off right, business, which the business. one, ultimately, one we saying, drives in change ultimately volume in growth, I'll in operate, efficiency unit scale. the

refunds density have, credits in the to on where and platform or across efficiency. the it's quality we're overall side benefits the that whether accrue with able platform If Dasher you combine that we improvements

P&L there's the economic parts verticals driving you're many the unit driving seeing we that across the that of of across is All of the all in both and board. across And the honestly, efficiency portfolio. are improvements parts improvement new restaurants

would have -- give break the was I breakeven well that talked when Growth, dimension you in unit right, few to several second apart, and has business grow economics. the is that, you overall something Look, the I improve no as ago. to where about realize for I over have a are businesses to improve. economics think data, about these continued doubt profitable business I unit mean, as it quarters be there's we portfolio to third-party convenience, time. the at that similar question we've fact And all is overall look That economic seeing unit profitable continued new a my be in going vertical But if very mind us. the I when are parts of our going

We're important But in still it's very growth in seeing early great remember, journey. are to volume. again, the across signals we

saw unit as well economics. in where in business as growth that QX the accelerated You

So to our ultimately flow generation continue goal the because will free to is in that cash drive invest business. the

Operator

question of Mizuho Lee next comes Our from with Securities. James the line

James Lee

need hire how the can plan same can or out plan try And salespeople? competitor? you get And grocers expand mostly integration business. sense on does as you your the at you And give system Do that Maybe maybe lay you you more what question Tony, process size point to entail? also a to retailers? maybe, explain is largest forward? to what going of how to -- grocery to My supply the

Tony Xu

X XXX,XXX whether I quickly. me we us. would if asked James, mean actually gone that grocers of been you and ordering I'm onto issue yes, we not north stores I asked I'm have really for America well North restaurants. mean, years I if in And close really to you ago, as say XX% thought not X, to the me that as would it's getting of things of of they over continue be customers also platform we you that And have I have. supply if do would -- an has mean quickly sure. think sure. not these not not from would grow would ask I'm or I outside sure. me,

base we why seen means that more terms they more with frequency, partner grocers that they And they've they straightforward also mean we greatest had a highly show the with cases local one in it's shopping very work that that with decades think I for it's with the see centuries just in in are of new of that they DoorDash, fairly think reasons users these that and the sales use which to commerce that been onboarding I is And continue frankly, see largest and future. grocer DoorDash, each incremental. previously is solving saw. can DoorDash incrementality also, conduct into tests I build adding them or that the of

James Lee

can here. Tony, Right. on add I

grocery to the time terms last that to app, seamless, you think more experience, in I talked Any rate. about substitution of it in and fill the will you update make on the you user tried improve rate help improve specifically? that

Tony Xu

acquire platform convenience more segments alcohol or kind in than of themselves. or I grocery now gone other any who customers the else. mean, it's Yes, think than speak results really well. I we the for mean, anyone I shop

think many to which QX think growing I triple digits, is peers cited we in that our we're by business suggest that compare outpacing I multiples. grocery you when

for themselves. numbers speak of the think I kind So

Operator

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

Mark Stephen Mahaney

missing DashPass is members. want -- Is of can about to growth think in most that ask adoption just Wolt+ is the the that space it of pricing interesting or features base Is is subscriber it lower do years? competitive of today? double -- the DashPass? further about a of I going What and the features are things more to retention, you do What forward, accelerate do program that more are tool. When you and pricing? allows couple customer great it find the What a engagement functionality? it to this you you customer it think

Tony Xu

think respect Mark, few it's to I here Tony. there's a membership I adoption. Well, things mean, with

actually the aware they're members sure that first of just that I is think the receiving. making savings are

within if shareholder DoorDash, XX own you in us. we active letter have we think we who've saw, our that million I our think millions of ecosystem, have customers monthly wrote hundreds with of customers. you as about ordered But

have to we of pretty possible are meet could aware in a make of I terms that savings their there's think so large behavior there the then and them them And where they base usage be. who

So number job thing savings within sure bulk one understand really is I make we be number customers can receiving. that that all would think ecosystem the they making one -- to DoorDash the and

number members increasing the receive. value I think job is always that two

And time. always so we'll and more more and that that's something working add over towards benefits we're

Operator

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

Douglas Anmuth

highlighted us Dasher to And details trajectory. how Dasher supply it in current individual XQ the feeling million Dasher you're levels good about survey. was of X some satisfaction also you the Tony, Dasher Dashers about earnings Can talk from then and to just 'XX. see and you

then second terms generative you'd efficiency benefits question on, call the thus side? AI around on anything new in far product or of the And out business anything in

Tony Xu

week. Sure. is And Doug, supply. the Yes, healthiest mean that has was #X been on in because the we've I DoorDash Dasher it in that platform seen. we called Dashers precisely your said, something I hours out the this of I XX% it's engagement, over believe, we Dash first such in on there $XX the offer we question, billion really letter, a where are think than high levels average, these is hours feature Dashers of fewer that have Dash right? -- mean XX about X million plus X a you I week, the of year, them only flexibility earn as who

is of mean do. a full-time work. of So complementarity to XX-plus and other really percent have what it them vast already the they they majority, -- I north

So you're that that's think seeing the of reasons there. one I

I do we That and to that high, sure the a Making we we all-time opportunities XXXX have for the that sure work by is to highs, don't that a use is the first models can app making been work time Dashers doesn't payment can satisfaction easier us way. more do, at and sure We while. easier. engagement to the for So of lot earnings make the Dashers. a supply to some in mean lot friction roads. for we have easier new create that mean it's in for in launched

a innovate work to services create as well optimize there's for lot So of and as Dashers. both new

at lot instance, We've solve. seen. you the certainly mean, efficiency technologies. in with you structured where on and repetitive that these probably a LOMs. see play with generative the see point. that gains of best benefits working it's digests of I seen AI. that's these generative the And newest models question, which benefits lots a to done I to manually, work a lot do been of for for with we've of that you our years always trying information couple On -- some be do we've of then was We're second serve been large into this can AI They areas nicely if language lot can a that think,

the think same at ask the tool. always time, of But I technology is a a I lot myself is times, question

we be make understand job to tool. have sure the to correct and We done the apply

many many we generative seen think explored respect with have come. for something think to it's to I So that's AI, areas. efficiencies to years I in But be going

Operator

next RBC question the Brad Markets. line Our comes Erickson Capital from with of

Bradley Erickson

value of that adjacent or example? more just you talked that kind even, Tony, kind of think a of be you like when DashPass, about with would in think different maybe minute you to partnering you for likely kind market, end an adding added homegrown, say? say, Do I for value would that about about ever anyone Or ago. guess first

now, really your how sometimes for the and nice quarters time. of your guess, laid up economics just highlighting kind geos unit same Ravi. were losses at were second, chart then also a on I verticals going out improving kind And few ago new even you've though of a

as is that's we kind of lot start guess, Or same where end happening? X are point great. at lines the look those So of Or would any -- or case? there where a of some still reaching the to we go guidance, be I there direction? point already that geos at a are markets Just color kind the maybe

Tony Xu

within, on I understanding yes, benefits but whether through think, on a partnership benefits here, or Pass and starts within. of I come our bets ecosystem. it own Brad, Dash build those -- of question really your can mean, There's portfolio

can mean We isn't larger when than are the I offer fortunate as well breadth there customers which think use any the largest category we have cases. of commerce I of in depth think And retail. use eating really and as local these benefits. space we you about that cases of the

if have have do sense I partnerships, #X is to we'll big we think of we opportunity think our we ecosystem for so job and an we job think what how first own #X have. sure our And job customers. I But certainly realizing makes with consider best those. just And is have certain I within building the it to products make great a

Ravi Inukonda

right? investment an dollars. business we optimize you're Like overall business, thinking trying we're growing share. is goal new not second verticals flow the of about the is as level, maximize right? business cash nicely. to I is on to both the well look, quantum as overall free across mean, When seeing long-term Our one the very are take international in operating volume for I'll per the investment What

in verticals are like with to continuing to our drive the grow. we volume across business, for as question P&L. Brian In my fact, Deepak, mentioned is in is improvements we Combined accelerate continuing -- earlier efficiency economics that, seeing both second new to to I the and in business unit half international

of both a strong as as for put well us a from signal those market product You perspective. together, fit both profitability that

free I'm as the long and contribute for profitability are we're overall for that. as cash driver going those is us. see to that in as both efficiently. the as to to growth goal to continue behind confident are long drive we a our business to of because long-term to entire going flow of continuing business, very invest able Our that's We're strength generation

Operator

with Our next Wells of the Fargo. Ken question comes Gawrelski line from

Kenneth Gawrelski

I if may. Two,

independent is platform believe model Wolt exception Germany. most EU the to Europe? I have be side, are the directive expect day. workers markets Wolt like currently do published It And work regulatory you with of of to going in contractor any the seems on First, reclassify the to

You returns? capital more Can about I what talked about little doing is the purchase was medium-term your about And you could a is return on lot second side, share. maybe on know maximizing 'XX talked bit free you're thoughts the renewed there? then capital you denominator per update EBITDA the about cash on based talk us guidance you numerator. the on authorization, I a hoping based the share the and flow one,

Tony Xu

can to is I Tony. And follow. This Ken, Ravi, free start. Yes. feel

the I first for your on is mean, a industry And workers I work an regulation productive up directive. Yes, in news here think in and it we piece EU and expect I very it's everyone. question, that the of which is the ongoing doing certainly partnership with. they're outcome platform think that about with regulators coming good are

and of I the comment to by there large, I about handful my that, an think earlier think earlier when made just was regulation. across cities mean, there I a -- I the question are world. really

to I So not EU or productively want which governments companies. with in or other think places U.S. just work don't

consumers. I work that mean, think we've want mean, and more seen vast vast, companies. with economy local wouldn't for the the you? for you why why more vast, more of increase of scenario work and I majority want majority the I is GDP local businesses governments accessibility to to wouldn't sales opportunities, create

that for that's recognizes a every positive we think situation the sum their I in government EU. that, And that see constituents.

parts see world. also in most of We the that

to look point, to And we're build general, per can that. start that feel to second was Obviously, I to to Ravi, we that's trying take for parts cash allocation. I your In think think rest. flow maximize there's share. Maybe way then and best mean, the free component free to I your customers. X around always the question products capital long-term

first fit, we product in state the in of but different scaling we're we efficient a to of of component of set to as how There's of we we they're disciplined their the parameters flow if at, set and there's best fast phase If generative. as business metrics at. set isn't for that look of another operating of possible just they for of run cash also our search a that within operating grow. ourselves. grow whether against another metrics budget, There's A which lot set different looking a in market doing projects look metrics. a set operating they're just and run There's that ways are progress,

certainly that -- make looking to think this very to sure that's with former or mean expense. a I I is denominator, is on So compensation always real latter We that revenue disciplined pleased period. grown we've the want on fact sure flat we're do we're considerably count the X I'm the quarters, we the discipline. headcount. has with though the same as on share with that last over possible over been relatively as make the time even stock-based

how culture. And operate in the DoorDash -- a well to that's it's to like company we'd mean, quite and very company speed how with same healthy look, of for I think and operating terms like I quality. also we been is scrappy we continue

Ravi Inukonda

that. share focused the from add, Like leverage a year I mean in can drive both to of cost stock-based just expect you as a given SBC last around to real Okay, We've guidance points as continue we're couple business. a driven mean to right? true leverage it's we've leverage see and to the well I on driving count. -- compensation.

overall expect in lagging RSUs down share we -- ways. to actually SBC given, that it's the is an the indicator from because And issuance perspective, overall some count you can a come we've see RSU

Operator

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

Michael McGovern

X. have I

you down curious, you is kind churn under the mentioned. merchants is ask X% Is as of want that a for rate, new all I out long just which mentioned signing function a about term commission as up lot restaurants, new partner partner you these going rate have what for your rate? build to expectation just First, of of down of partners, for your commission features year-over-year. you and

advertising in margin when does was business. you guidance business if the contribute going mentioned I the that could you net in revenue significantly talk about to second year up secondly, half then And a potentially, year advertising wondering bit your of full just the the that? And

Tony Xu

in to Sure. add here, Mike, feel and Ravi. free I'll start

first every generated would I fortunate these past and of be the value the we've the believe their right? is of in to trying And years which we're which of on question, that level on we've to spend spent billion always for maximize we So think of we're single that these commissions, that bring very partner, helping R&D, sales, difficult/impossible own. I merchants, replicate behalf team lots sales $XX merchants and on over around partner achieve sales marketing few over

frankly, continue and actually, lower. are see I you to think those that And why they churn that's numbers get low

us, we're to more will to such customers these for together. So always it's sure value grow that continue making that delivering

can a I every companies own there's the merchant think on compete runway truly digital in before physical as their ahead long argue economy. and

first have in I our there. just do the restaurants, outside think and get think we're I started of lot But nice a we done decade job of more restaurants. restaurant within we've I think a to category helping getting work certainly

ads. at. second not that business I question I business the gone around to mean it's I size mean, about grown, that probably Yes, think, I has something we're really think well. that but talked the was ads your commensurate think much, it's certainly of I we've

the in we other cause to is advertisers marketplace. business. again, ads for to way allow in as experience healthy which consumer it a delivers which the best the tenet healthy And allows as to us, the for I have operating growing returns believe, or around. and well causes have for that key is one here That's industry healthy what business, think ads -- a have best-in-class us continues not we

for smallest which advertisers. or that making so the returns best-in-class Which where us, And consumer accomplished. I'm have experience, it's has we for really on sure that we done we can the well proud we as those degradation ideally the really X always in the achieve as X believe well. dimensions It's have team

Ravi Inukonda

year. is contributing go well expect net we context scale through that to I'll a to little to the margin. more increase how margins through the take Mike, I bit question would broaden expect around just of your the your to as margin, Definitely, that gross to both right? the the year. point, as rest give revenue I as the Across I around you as of rest revenue that.

from consistently expect that, efficiency cost to the on have to on overall I addition consistently to and drive promos. perspective. We're In overall we us We're leverage trying improve working Dasher discounts an quality.

second as to ultimately from first gross should you year which half the of year. which across contribution as a well drive will and the the Again, the will to drive of margin, in revenue half through margin us P&L., improvements see EBITDA compared flow expect the both perspective also

Operator

Ladies concludes today's this call. and gentlemen,

disconnect. may You Goodbye. now

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