DoorDash (DASH) 1 May 242024 Q1 Earnings call transcript

Company Profile

Participants

Andrew Hargreaves	executive
Nikhil Devnani	analyst
Tony Xu	executive
Mark Stephen Mahaney	analyst
Ravi Inukonda	executive
Michael Morton	analyst
James Lee	analyst
Brian Nowak	analyst
Eric Sheridan	analyst
Andrew Boone	analyst
Ronald Josey	analyst
Bernard McTernan	analyst
Lee Horowitz	analyst
Alec Brondolo	analyst
Douglas Anmuth	analyst

Call transcript

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Operator

Thank you for standing by. My name is Eric, and I will be your conference operator today. At this time, I would like to welcome everyone to the DoorDash Q1 2024 Earnings Call. [Operator Instructions] I would now like to turn the call over to Andy Hargreaves. Please go ahead.

Andrew Hargreaves

Eric. Thanks, and us everyone, XXXX our for call. earnings thanks afternoon, for joining QX Good to today guidance, environment. be be and pleased position, broader our very I'm joined economic business, our allocation Xu; during call, financial CFO, approach, expectations statements the for CEO, performance, by and Ravi capital forward-looking Inukonda. We'll our making operating today's including strategies, Tony Chair Co-Founder, and

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

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

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

we're obligation financial outlook, year providing longer we disclaim full and any reminder, full outlook. a to As previous no our update financial year

Finally, and the after call this our an on available call website, our is website shortly ends. being Investor audio be Relations audio webcasted on replay will

our first Eric, I take will pass you, question. can it back we to and

Operator

comes question from of Devnani first Your line Bernstein. Nikhil with the

Nikhil Devnani

logistics incumbents the in about Tony, I the wanted new to model versus of your some ask verticals.

likes leverage competing and some commerce, bigger more grocery, significant Amazon, which models it you're has like of of fixed out categories and within local build you cost scale. baskets Walmart As directly at with the integrated feels other

prices somewhat there's that higher cost-to-serve on a are it. a here disadvantaged a model seems at less it and chance paying consumers for always basis XP be might the So

set what not with levers have at you over Or get the would your perspective So we context time. you whether pay quicker grocery, make or up your smaller a a broader effective segment disposal the for within love on, category of that's opportunity your that for think being example? deliveries cost first, about to like as and should of agree or selection willing to just more of market the a to kind perhaps model just

Tony Xu

Yes. Nikhil, a that's good question.

accuracy we right? from think give; of selection I guess I quality going getting the all like about especially always the to would offerings customer mean several they terms they're we've the about retail that something of foremost, based kind of you that that think, in of and, the how us, going the the as delivery; and of timeliness, both regards not as the delivery, specifically in with expect. whether ordered is condition how grocery, of well, first it judge exactly or if cost got of it. there They're that, they fast So on had the certainly, this well and we items I And we think thought us what are perspective judge to about to factors.

middle-of-the-week we're where about seeing alike, both being case, only the to you run, the your retailers. DoorDash's in was time, to or as started problem incremental fruits in that milks pull. top-up why as items if perished right, addressed items or consume an consumers pantry it that a a the consumer well solved And journey market so or things for the in this. berries the solve think perhaps earliest, quite or such like often evolution lot by we new wasn't occasion was coffees, category. yogurts for really with And that where process, not We you that grocers most introducing use that case, use this also really the as have it or or which may started And that of at that's a the

a whether was QX well dozen recently added as with Ahold of quarter. QX, platform and several Wakefern, it announced to in more as in the with lot We we in additions the retailers

consumers so And seeing increasing pull we're certainly, think, I from from retailers. and

And so front, making I the selection on mark. the we're think

for few built there our if highest logistics I category, question i.e., the build would economics always can and surprise Dasher than baskets the given go, smaller business seeing in network of category in that's unit you our been an have just density the category And specifically, I thought from a grocery we've a that that mean, network we we've in even you frequency fact, in last nodes largest would thesis and On of are CPG verticals local new the other I advantage has the certainly actually delivery, up think restaurants there more our cost positive where think without the with mile advantage. business. things. are has something in most positive had then ad we the retail, One, the that contribution dollars, we're seen. that that, meaningful any

so And flexibility an proven we consumers. make to which out. this I certainly, that's advantage the the And in of speed offering certainly think there's can and

trade-off sometimes your with cost. point, there a to But is

of the out quite Now do we which can is selection. equalizing progress we'll there's a dimension, right, lot But we other believe there. this of terms also what else in make what versus that is

selection. it So point-to-point first-party. expensive on offers hand, third-party then other hand, But versus more is basis faster on the the on one more a it's and

more stores, certainly can from store. get for single one just You example, than offerings

third see to selection what the where now in certainly seen I we've can grocery the I you is a to it's and we improve I I to And triple-digits on why a which the in prefer. straight model of cost going growth made reduce selection which we We going year-on-year. outlined consumers And work process. that come available, the that north of quarter results dimensions, so down that's has on obviously increase we've amount think where think that. offer, quality of these think are it's the And done that think

And I that believe serve. high quality. progress certainly, think we're quite we're fulfillment We making that lot progress and so on seeing making our also retention engagement the of to And usage consumers. from a and cost on we're

all the So right in pointing are things direction.

are So pretty things about we're where excited headed.

Operator

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

Mark Stephen Mahaney

in throw please. could I If questions, two

out? you're strength First, of just any there that's your on on nicely color like a $XXX progressing? over here. at in Are and talk about to you're traction rate, fill question, to for just million the comes are it a when far. how close some And seeing so losses so looking Any markets? ad little to you, want run revenue, Just international looks verticals areas of peak disclosures verticals other it then you we

Tony Xu

capacity. ad maybe on I you the investment start Ravi, the take Sure. can question. can question on

So Mark, think on well. really I point quoting you're you the in how is the question. making were on our going think ads, larger I but maybe than But don't that the I is estimates, business what it's know substantially ads ads broader

by that building on both as everyone capabilities going to of as working restaurants what's from all product small seen, serving serving spend. more started see adoption mean, that it large whether that businesses the in on we've think more well cohorts, just so terms can it's And extreme reporting their with category. We're self-serve exactly I certainly enterprises. I dollar now capabilities

been I the think on front. offering return spend seeing are consumer and good is what's on encouraging while we leading best-in-class that also ad engagement

that's something asset. our Obviously, turning CPG to that the attention also We're after. came

Our ads something is like old, effort X.X about years that.

up sectors ourselves pull on surprisingly, the was The marketplace, pull came the the been setting growing But probably, CPG first as X.X retail and we're market, especially years grocery which seeing from our have increasing restaurant advertisers. the for really from side. from not

products now with And up large so demand. to CPG building We're their advertisers. meet we serve do to the work just them the all

Ravi Inukonda

as you're take fast. Yes, is that Mark, the one. But revenue, it well as one, EBITDA disclosed in the the just first both the growing I'll ad about to It's but Tony growing. revenue what seeing talked to we've contributing not It's on right, business. second

consumer those. the for goal are of quality has we how business. always well merchant are think to ad we been constraints and we're the using of believe best-in-class our ROAS as conversion, as measure Our both Those do about we

Mark, national business, second a verticals comes question about we your when quantum to it's whether as around and the or it new quantum business, of manage of not operate investment, thinking dollars. are we

unit or grocery Our focus order a that or are been are growing whether across are growing growing economics international we investment any we we business. it's business always restaurant has make, retention, frequency, we

growing. We're business verticals Just the you on share. performance business, at touched XXX% a fastest We're our grocery, Tony of this for I to new year-on-year. that sense is growing give earlier, gaining mean,

that increased as focus positive quality make economics, third-party change more has our the to the component look the I selection, verticals year. of When from continued compared continue been affordable. unit last step-function been has the last unit economic comment I at to unit years. improve We've unit business to made that improve point. well the the more new drive for product economics I that When the Our portfolio, several call, have to economics look at as

strategy. invest that's are continuing to we seeing very economics are what If fast we we growing you and business to unit have improve, a and like the continuing are that behind

economics, for for our to very restaurant business where, at to our At for causing business time, several look faster. faster, business in which same to growing the countries peers, are Very few where good if business, is Very contribution which the quarters rate profitable. now. has margin similar we substantially that markets the unit similarly, dynamics Xx year-on-year international compared we're whole positive of improvement gain been unit operate. the of on as share portion some majority on growth I international international the a are the In a the there economics the growing Xx cases, we're us

are of invest. I you continue are well both to those expect businesses. nicely. of growing growth put unit unit that continue improving we right, to what the both That's together, the do in as economic like like through We terms of as the causing in They're areas year. seeing economics. improvement investment So the to And us rest

Operator

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

Michael Morton

the platforms. selection to a for just Q and any factors with in recently. all you've one time nation's about on importance if for business you've added follow several new to question We'd parity Tony, grocery of Ravi. and your love second spoken restricting the the lot in for at selection then Tony, largest know improving the the the the having a grocers competitors? First maybe and grocers there's selection what's onto And then bringing frame

for for kind new restaurant could understanding think of in we lot inquiries same way dollars within the like of us of into the verticals of the then still the you looking international, Is that investment hit bucket us if about a with investor test scale has and restaurant, And different are incremental Ravi, get feel especially or inflection 'XX? you any half for the of better there and about the confidence Dash going, second has. level investments segments it help where

Tony Xu

I terms segment. in true I maybe, or category, segment. Sure. in to in in the category. the of I home the repeated and also interest I think, offer quite first health That's the That's Michael, We add-on from mean apparel mean, guess, retail beauty can the electronics is inbound I question, other example, the increasing, category. in one. We're I message the now retail part, category, retailer we're our in consumers which we seeing what guess, a added, take first improvement grocery. as first active on an for Lowe's, true

grocery, would what to or certainly this this. also guess, the beyond our I they demand. goes customers I what I stop would way just grocery think mean not would It's retailers would think So think not I what at much either. about be I want be expect

are city. think I so consumers increasingly, for buying the and retailers inside DoorDash as shop alike seeing And everything a one-stop

resistance in terms joining seeing of platform. we're opposite So the actually of the

work selling how them them but e-commerce own job first-party helping map, we by one the can question their of do of we how and work incremental adding products increasingly retailers, that so consumers way. lot serves bringing we an with platforms, also the work. their demand, road like that it's a digital these prioritize think not these get just times own them of with just in sure I right, to we we own there, integrate. lot their obviously And Because right, we the make a do all too, there's which sequencing things is to to how in capabilities like of which them marketplace, with is the

matter is first-party there's sequencing and of work lot it more a both in than of third-party. It's so a And anything.

Ravi Inukonda

little take broaden I mean the business just in we've Look, lines I'll major progress about improvement the The not really before Mike, the second restaurant, the right? business last made international. I'll Maybe economics is a Yes, quarters. of out feel bit. question the growing in seeing in several but nicely business, one, good I QX unit I grocery, new or said question, we're across it's like Mark's And all whether quite across board. verticals the in

expect we in will plus economics half expect drive as across EBITDA well to half. HX, do we do in that's continuing thing the scale first compared improvement of the saw nicely. to second 'XX investments I EBITDA in second volume leverage, that are half. in The 'XX. scale making to second lines well half. to half What's unit be Unit half driving that to as that the leverage same the increasing expect quite progress first in I the higher economics. business. than is all going higher in be as second both as I to further the the the The are the lead

expect well. I when be the overall, pleased and very with well performance, QX QX So the I'm pretty look I as at as the strong to year full as guide,

Operator

line comes Lee question Mizuho. with Next the from James of

James Lee

we And wondering about Seattle think of you also is impact? other think York. is what should a a cities policy? New mentioned wage impact I'm should Obviously, to how the just relating similar orders. we saw impact EBITDA maybe regulations. question How also, in moving impact little My about to on in on guys bit EBITDA? potentially You and the X%

Tony Xu

it's take of making right? and accessible part they I more. happening can a clear But you a I I Seattle part. which do, less help increasing impact it in take our clearly the mean having pretty Maybe certainly earnings. have is to impact. regulations then, that such right? to James, the read, as first maybe costs, intend support instead, the think the consumers what affordable, And that and New release press the Ravi, Sure. lot think makes service what's to opposite lot they financial can It's I around City, have drive it's both pay in less you these I mean York are

and and Merchants effect consumers are officials the lawmakers overturn Seattle and regulation. are lobbying drivers mean to result, York, making as you opportunities. I see fewer think less I getting their are and the where what to work a regulators and Dashers, that's New in elected both I merchants mean Seattle in

impact. actually that's what's having think I part it's So happening, which of opposite the the is literally unfortunate

as Although I this probably alike. been and could predicted telling think been have we've lawmakers regulators

a place billions U.S. love service that mean, so to can in earn I most or predicted productive, kind public, extra where who dollars I that's of what of here the XX to adding GDP a started provide we even or that to own think that when with you? time. like that, that not guess, think think And of honestly, to wouldn't to in just this offering is most I wouldn't really participants their been serves governments the saying since, and dollars I think of going that But mean existing world, the a across broader service ago asking, we about what and income true fact and I local businesses you're you're mean, on question we've company, want want cities. and the working that? tens why the that the lawmakers the consumers economic be governments you're anyone I years billions

to since you public. the there I couple we've we've handful to positive But some of of when the But XX antagonists of started are forecasted this of ways, both a still them, hand, listed in the would cities. cities, as that's they perspective. a one saying inside company GDP handful what on we well cities, ever prefer their ago think where And going limited been they're opposite years of as kind that creating

Ravi Inukonda

disclosing that of impact did the we in EBITDA a efficient, mean, Yes, market in do of we and not our step-function That expect do rest point, second regulatory the taking We unit It's quarter. that expect time, be which in is expect exact absorb economic year. both us QX. QX. York cost that not First from be foremost, to some to pass making QX course market on to going from approach will to over the the on meaningful It in, of have will the has change. are I forward. cost that unit time. and I business both sustainable to I over James, operate changed, a did not Seattle going said, reduce go the right, the more did sustainable our New we fees right? economics. the gradual to every be perspective we're a consumers. priority ensure in we're amount down Look, over markets we to we But

Operator

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

Brian Nowak

Can a go these just an in are advantage. driving you on made in, times, last us to bit international that Competitive that you're the all is profitability you the a dynamics let durable have of looking in important little investing have help lot comment you're to You therein, I know Maybe side? market unit about countries to side. scale delivery. me understand international food back more economics. sustainable

about how time? over actually in make countries get sure the think of we international portfolio through, all and us the that profitability to how that the managing to can walk markets you're you're should sort Just just like different

Tony Xu

can Yes. And mean the international I Brian, very mean U.S. our Ravi it's pleased XX about outside countries portfolio. we're in. free, to I start. of with I chime feel now

your you up locale, where of more point, in each it's investments dollars that codes same at made makes efficient scale, ZIP you the every to comes complex a certainly that time, business achieve the ZIP use or that to point that you've eat if scale minimum So is a in business the an portfolio, after expanding the it code of kind manage. minimum can to all which But order can or market. collection efficient becomes

about we are where pretty heading. So feel things good

are I XXX% the that's I now expand. in international think in mean story mean that to I continuing not the that XXX% to geographies of the population. of we or even close even the really right in, we're in are we sense

we that to to to outside to in certainly we cities in have selection We restaurants. getting a go have so And go long reach. the long ways of a in adding terms ways restaurants, merchant of want

to do the work We over see, country. have to right? a But evenly that product like bring equally years the we we we've what lot kind of built or of every portfolio across

the you built we the team to it which capital-efficient to be to we international up team thesis example, on most mean certainly, if that order right? be product to been best way teamed operating the number when frequency; faster if were added that to many to that outside that's think we're of last two, can certainly and company had the I Wolt, been of back Ravi product focused I grow really came retention, have years, X was, leading for U.S. and growing mentioned find the had those but mean and think up our with the business, And business to this, with have just true. on that our would investment over things, may like two the be continues the side, we than we singularly case. I the that, think it both I sustained international portfolio, when X the very quickly was and running dimensions the peers, times One

the but team, then the running, the phenomenal U.S. the a DoorDash the on Wolt second adding then also in countries portfolio done and team And portfolio outside Miki job management the around on obviously, of have point of

they've business the really up then in U.S. and, those so the And all initiatives obviously, also restaurants which of we're new it's management future. job other across done ads focus frees investing verticals obviously, on, business, platform the but good growth, whether core legs for business business, of bandwidth the a adding other dimensions, the to

is So teaming I really think all that nicely. up of

Wolt time, You've team also had and line first dynamic we're for conversely, where impact, both the bottom and top direction. other certainly learning introducing this markets those is cross-team the nice adding which things the and to

think going when are look how I I internationally, they're So pretty well. things at going

Ravi Inukonda

all to at order the economics. Yes. managing every done the on a at retention, I city, where add of major what we couple by we this progress a last seen of I'll Look, each and talked about. We've course it's look What metrics points Tony dashboard years. we're When of have business just metrics. and X frequency across mean, the all towards look X improvement I individual Brian, a the over market, material couple unit

proof actually is the the for quarters business the Like portfolio margin international row. talked across is core profitable that the as the countries the economics our portfolio Wolt And well within the contribution the profitable. a portfolio restaurant pudding, about several there but in last in international as actually And unit fact is I several are right?

Like As well Order make to are high. rate. right? is frequency business more we to as we This we more that doing product confidence to double-digit growing add continue well gaining the compared share that are peers. is an at us as at continues to be gives as all-the-time MAUs the see really what selection, starting response, are continue a to we affordable,

Operator

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

Eric Sheridan

Maybe you platform incremental innovation, generation dollar that get do SKU over of how either driving product relative of and to where up you better term? new the to investment the I business, medium Would growth sets dollar how end-demand in and love one, the if investment the an further can. on picture in be SKU GOV maybe and innovation between some When to one measure about might in verticals thoughts big penetration spent of the long evolution broader compared platform that and $X ROI? think

Tony Xu

changed starts products I guess, is with to ways, new I start. we mean, X.X solve in right? it the Eric, that grown in really just it was customers was which in I sense upsized, of apply we Sure. of The are ago, what the ago business can surface some or that that was years build but has still Obviously, years going always maybe problems a thinking X almost for better, of difference hasn't tremendously. area which line thinking, it restaurants pretty applied business, more towards one kind U.S. unit. it the singular to

then you the business, severalfold today, scale. then I we've of are U.S. at stool added of have think of that But obviously legs has been you when about kind that the like restaurant kind bigger. now X But the which more have

small that's business. the ads international business, business, verticals getting you kind years have like the think started, thing And I business. the platform old, X.X which is a then the have just of new You it's

solving most we example, the same in tends to But where but the it of we're product for way expectations When for entered, build level grocery where than next problem X.X it's better first problem about time. the solving the still the and we the higher that same be first segment product it's of market who years better. finding it's next have category. was cohort fit what the or ago, basically the can Either to invested time previous to think that next customers meeting for for obviously the that problem, some solve a idea found cohort customers dollar the we capital-efficient

of general that's kind about how And we think so in it.

then like the capital but of whether and like slightly And decisions, or possible tend allocation to job with to incremental M&A other respect you start those be things how this, best the dollar customer. next buybacks types different computations thinking the done and tends how But there's it's spend right? by we've to it about do be When like solving done to things, you be calculations. generally for

Ravi Inukonda

I'll Maybe add Tony Eric, talked Yes. to what just about.

the ultimately and us, on consumers, product making our Dashers. For business for depends merchants our better

when where the product go we adding to always think about quality the the better. So product continuing to whether making And the it's dollar or more to first invest going affordable. meet selection, it's to improving is dollars,

flexibility when at goals both We very look as We We comes generation long-term that But short aspects of had all give obviously a it measuring on ROI. to are going very consumers we that basis. the build scale. order the innovate, more disciplined we to ambitious measure term long-term flow being goal a with if continue the come us, scientific. the product, that. which and sometimes, free teams We're well to are cash ultimately, best builds They're in to as the with back. drives going to business. And just

Operator

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

Andrew Boone

drivers acceleration talk the of you seen year? over about that can services Tony, you've last platform the the

Tony Xu

which thematic more through launched fulfillment really we're say I the more things offer think first portfolio, I continuing as But verticals. it's places, mean many of I there's into platform is Drive, we just there. product to DoorDash probably would two part the Sure. right, things been services where, whether like that's one, countries, services more

I shops one to other that's of is items, any channel. who importance whether in exclusively out to other think more that also and recognizes omnichannel valuable the companies every or the than it's sell food delivery there, retailer see beneficial customer really net customer their encouraging because sell they how

just And building second, things. really always it's We're products, right? new new

own effectively retailer beyond you so to about that do on is, fulfillment. their If what think what it's its marketplace platform for enable to services of division any DoorDash business right? the much And or does goes customers,

to in you to going online right? ordering, that And between do everything customer kind there's get lot support, a right. have of way to to activities of You're the from all have

second the new is So always products. building just

big think and we is So this sure this the how allocation, really deeply just I example as more to we question services. which how much in of, the is it's move job, it is on and job is in aggressive a just next nice investing can as physical that customer, great really we've that's that's the do solve to and around then increasingly worth, we what retailer, see, it a solve And seen I to answer for and previous the in But make capital becoming that for retailer, how job think, more every digital. think, platform right? I

Operator

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

Ronald Josey

take maybe, rates to, wanted and of to back it Tony, I take stand. we sort where

talked net press reduced release, delivery consumer per think order defect time, fees you average lower. about the I in rates,

or was going, but talk of the I on you the sort just continuum are improvements rates could how there answer call scale in coming And much it, sure just So is of improve? take can changes about was we are material that infinite, impact rates. the things of, more defect And to the when think think overall that take down, pretty I'm these on how these I is contributions curious of we a about where if rates.

helpful, any just insights delivery be on there rates, So efficiencies. overall just would defect time,

ago? more hear the would curious, And services, just a couple past platform it follow-up versus amongst we've are quarters, of seeing a adoption years love as restaurants on to just we today been few for to Andrew's question highlighting

Tony Xu

Sure. I can take both them. of

prices, And think and things where the They accuracy, And which look, first demand so totally then over That compound following to support. just of of always better selection, lower do one this you're always customer going to interest, across around to the is inches, the game time. deliveries, consumer of improvements just those tend right. true. how underestimated, I you're be guess, really benefits see like it's I product mean, laws mean, I right? a is improving the faster higher consumers like, more board. I question get was we want

think go. far thing I XX think, now the underestimate, And that function. marginal the always or I least human right? years, wants I And is XX these of just learned return that either kind because think compounding what nature, we this, at human how there's you I of how technology fighting me, surprised a get been for that's just just, a can works. up over is get And that but becomes over ends platform mean lesson doing I next by I happening you almost know concave by that think years think some surprised to nature things

so at And experience been my least far. so that's

And so going always pushing keep to envelope. the we're

make have we so And why ways to that's most difficult actually keep candidly, customers customer seeing expectations form And that's because more competition. the in always believed that been, of product, far, I've what the improvements always expect. to part

than second before. I platforms think and restaurants now be may question around was more adopting are your

things. I few think a it's

right, from So physical steps, any to I people wrong, things right? it about journey digital, have they that adopting it's who takes part Because to it more years think overall a many the I businesses get retailers, company today, shock you nonlinear then it's and and makes it's retailers, mean, work help impact it's if products to when really physical or if that business, one journey they And that sometimes the big the the that it of of just think goes the comes such become if a kind of perspective of to big system, a a where of any the sense. running and that have merchant, so their there. still

And a is would just just have I so may than little sometimes, natural in of that moving that is you one longer bit things direction. take expect. what's encouraging a these like think But the kind appetite rhythm

whether of that is these always kinds of lot the categories, of us restaurants maybe digital, And what out is like the known or is direction of greater But convenience. new doing or travel so it's in direction rolling other whether a in fulfillment, greater more with less predictable. that's timing or of the it's on products times, changes,

Operator

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

Bernard McTernan

Great.

playing restaurant factor driver in quarter? grower was a Just wanted the U.S. leap decelerated of be here. was And forma year law business basis. What willing that? major the double-digit year or in on a leap pro can a to to ex ask, of if core still ex quarter if it be know share large slightly I you'd the numbers the first

Ravi Inukonda

I of that on to I the Yes, at Bernie, QX, at users one. last look I take I growing point. of mean, and all-time was rates. pleased the at overall really mean business at the the is year. mean have number restaurant but about That we that to the the large both course in growing. the double-digit grow I'll since I look more than in Order I continued progress with business performance to this When not the has quarter, we business. It's an when the be last in fact and order the platform. just users at I frequency, The at have I point. QX, nicely. grow U.S. frequency mean quarter, continues XX gained continued of share quite Users, over this high. look It's consumers performance talked million

When new is in business is platform at you is of I size be as look performance, mean, X in business to DashPass nicely. cohort row. continue But at When invested underlying we business and to us. and it's verticals, straight scope record a strong. very talked highs continue the growing. of growing we've opportunity Grocery, quite for at expand the front that to mean, International the I that well. look, quarters I subscribers the doubling about look

multiple Our strategy many really of is strong going allow to years countries to drive multiple for to having in come. us growth categories

Operator

from Deutsche question the next Lee Bank. Your Horowitz comes line with of

Lee Horowitz

environment wanted Great. I on ask macro to little bit. the a just

restaurant restaurants weak up maybe finally being quarter the with of the perhaps longer, macro the sort chains and environment overall year? place may environment, for outlook in seeing into you're and the terms a higher your incrementally number this from heard of Can impacting at all demand rest catching XQ in the for the be consumer You've demand comment how overall business inflation you in indicating of of what to consumer. that

Tony Xu

those take perhaps do that to we're is understand general, not think, which of operate headwinds there the we with segment Yes, think on digital can the I that merchants in, the I the example, the is actually the restaurants strength. think traffic. certain it U.S. for to same business, in-store signs comes comes seeing growth not I when digital, are I quarters. signs of in some things consumer. seeing, mean, something all even, has mean, to X do over that. I it it I last pretty strain But face I that mean, I consistent But in and delivery. when we're

at or that, has that's, So months whatever, for. XX that something roughly true

that's sticky high see we input even on has you're digital in think very terms I there. strong which And stable of in tend still seeing true relatively items. grocery where prices inflation see to a prices, And or it to to led be the see But high side, pretty to categories, growth. categories demand. We that other so tend even why like you grocery very true we on see

Ravi Inukonda

Yes.

to Just like demand to very right, continues to that, add be strong.

quarter. in see And they're we've that grow. over joining cohorts. That year, I as also they're the at compared at look previous When to well. had of ended we talked the in continued as other higher of other cohorts QX. subscribers. very record DashPass Last DashPass question, cohorts, an platform the You the can earlier order good XXXX look with seen. to set XX has at number to frequency a frequency has cohorts order newer million the actually we when as I all-time cohorts, continued strong at the many the any on

business gaining the we double all at lines of are X as pleased, So share strong X the when across across all digits, very board. business, I growth look as lines growing really of well

Operator

next Gawrelski, Fargo. the Ken line question from Your Wells of comes

Alec Brondolo

is Alec on Ken. Brondolo for This

fee You but York the Seattle, operational also investment there's that component the through minimum you're that, sure changes earlier going profitability. the there's to making going to markets around noted of in it wage probably to call improve those like I'm that in you're was in the year. New City, make decrease sounds in that a consumer

you those, could you of speak maybe to the So specificity, anyway to level can?

remain secondly, And people supply that like was it's very about little to you are it the Should Dasher it's the it speak then last XX the and it next seems to a like 'XX, In over XX would two? think been or too. I environment supply helpful, changes tight thinking maybe seems Dasher maybe Could supply? been potential to checks, favorable cyclical. over months. getting for outlook stimulus Dasher COVID, be when supply since healthy your year just Any

Tony Xu

maybe on the mean question. I can I Sure. start

of know want prices, the just right? best widest it's best expect. They you They customers think making in the best the support. what regulatory, want lowest general, I when with it and to what honestly quality we comes mean have, selection. levels I the the

any expect regulators the we'll with market. And what when them, what And of in results, that's us we I of same think, at impact you too. think also I the especially to they've they show it's So do some want achieve, hope to contributed. those to work then the work should of time, gone that them to show opposite certainly

Ravi Inukonda

Yes.

some unit But the in I that's economics. of about, through credits go all in costs sustainable we improvement we and the by to despite the goal take our drive to We're at further the When refunds. right, basis. on And at gradual, look it's same supply, P&L I efficiency, rest that New to the that Seattle, time, a there, of the cost chain healthy. operate improvements I York, leverage where as driven in general. And the regulatory in you're in we going add it's did Dasher are do to year-over-year of Dasher expect I absorb supply very continues markets efficiency around economics. drive on Tony to second what again, point the reduce a amount Just mean ensure being QX. ultimately efficiency, us for whether be entire and continue costs that unit to going talked we'll and to to we've have largely be see absorbing costs, to year. going goal at we think is the driven That's will quality, but logistics, which look absorb

look ahead, efficiency the we largely going product on us, are make I As comes improvements for to that from side.

same is more the Dasher from increase driving updating And Dasher number Pay the Dasher we app, is that last existing all whether on seeing Dashers, is it's which the Dasher making way of redesigning the improvements, you in the the course hours acquisition Dashers more year, we've If earn look also efficient. over made efficient. of more time, at platform, which of making attention, are at a

to that which list cost long more efficient we overall a make will of have We to continue plan Dasher the board. improvements make, across

Operator

Your from JPMorgan. Anmuth line with Douglas next the question of

Douglas Anmuth

to about drives talked higher you I economics you first just Ravi, us confidence then about on first the step-up light in in spending just the R&D half the should more also, 'XX? the what relative could a was those investments. understand in back help the and how think through XQ we little that half you on in EBITDA can unit And half. hoping better and returns shed

Ravi Inukonda

first Yes. then talk rest half Doug, the the the outlook year. about and question of R&D and second take for I'll the the spend

core verticals whether international the grow see now. other in now. you're Same as growth I simple, a profitability. continuing 'XX where of the as business parts At relatively to the business profitable as in few economic mean, historically. seen the unit or terms formula improve the that international profitable in entire as improvement with double same time, of you seeing First, quite I few is in the is as what new new of the true the a international portfolio, portfolio economic quarters portfolio is the business nicely, overall we've used continued continues 'XX. digits, What today we're to is We've well is a verticals, well where third-party well as the unit grocery for economics. quarters unit it's mean for component restaurant

going it's further Quality efficient. area over whether year. that's to absorb regulatory to the reduce continue more the us. going to get do drive for refunds where costs key the of we a, of has to efficiency, the are Credits expect been cost, We cost a course Dasher and focus

growing. business is ads Our

the only combine top of I'm I'm of making second QX we've If the we higher be same will whether exactly volume the EBITDA year, well reason rest of increase rest at to the the combination it's well through year about as feel in looking this both the both I the you the go investments as HX, The those line. economics as the have with also before. drive of not as unit that the going half. the do expect pattern as through but to is go when which And improve or business, we're the well guide to scale line as I of very first as rest as confident half is leverage, we than in The done QX XXXX 'XX. is bottom year. over good

point are that opportunities find is key the 'XX, we second look, to to come. product. to right, R&D., we growth And strong still we in for where are years invest. drive our continuing I great on the mean, but to investment just Doug, many improve not goal The operating large We're making fortunate is in segments

the as seeing going of up. you're improve order going well retention we that as As frequency up product, impact both

at longer of this we improve count our to is OpEx but to us, rest drive on to We're expect thoughtful. QX, be us the be to help head are I to year. the engineers what as product. goal going would I the We're adding continue look term, business. continue seeing adding similar to leverage the year, When For in levels OpEx you're we to grow

Operator

may you lines. Ladies now Thank all and and call. your gentlemen, you today's joining, that concludes for disconnect

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