DoorDash, Inc. Q4 FY2024 earnings call

• Tony Xu emphasized the long runway in areas like U.S. restaurants, international markets, grocery/retail, and commerce platform, focusing on improving product selection, quality, accuracy, speed, reliability, and affordability. • Ravi Inukonda noted the international business is growing faster than peers, with the international portfolio gross profit positive, and highlighted the focus on scaling business to drive efficiency and gross profit. • Tony discussed investment philosophy for the next couple of years, emphasizing investing when there are signs of product market fit, monetization paths, and building cash-generating businesses across areas like U.S. restaurants, international, outside restaurants, commerce platform, and ads. • Ravi spoke about Wolt's strong performance in 2024, with international MAUs at an all-time high, order frequency growth, and Wolt+ scaling nicely. • Tony addressed autonomy exploration, noting the different problem statement compared to robotaxis and the ongoing study of delivery-specific autonomy technology. • On AI agents, Tony stated the need to master the physical world first while leveraging AI for personalization and operational improvements.

No specific financial performance by product segment in absolute terms and revenue contribution % provided in the transcript.

• Management is confident in the full-year outlook despite Q1 facing headwinds like leap year and FX. • Investment philosophy continues to focus on investing when there are signs of product market fit, monetization paths, and building strong cash-generating businesses across key areas. • Expectations for international markets include using profits from profitable regions to invest in others, with tax implications being somewhat volatile.

• Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those described. • Uncertainties in the economic environment can impact business performance. • Tax implications in international markets can be volatile. • Challenges in achieving the desired cost structure for autonomous delivery technology.

Q: What's the bigger opportunity to increase 7% frequency or 12% penetration and what's the north star for either?

A: Tony Xu said both penetration and frequency are important. On penetration, it involves getting into more geographies and improving product for existing cohorts. On frequency, it's about continuing to improve product like adding selection, quality, accuracy, etc.

Q: Talk about contribution profit margins in international markets and 2025/2026 goals?

A: Ravi Inukonda said international business is growing nicely, gross profit positive, and they aim to scale the business to drive efficiency and gross profit. Tony Xu mentioned investment philosophy for the next couple of years focuses on product market fit and monetization paths across key areas.

Q: Thoughts on autonomous vehicles and Wolt's performance?

A: Tony Xu discussed autonomous delivery as an area of exploration with a different problem statement than robotaxis. Ravi Inukonda said Wolt had a strong quarter in 2024, with international MAUs at an all-time high, order frequency growth, and Wolt+ scaling nicely.

Q: International markets utilizing NOLs and AI agents?

A: Ravi Inukonda said international portfolio is gross profit positive with some markets contribution margin positive, and tax implications are volatile. Tony Xu said for DoorDash, master the physical world first while leveraging AI for personalization and operational improvements.

Q: Bookings acceleration in 4Q and deceleration in 1Q?

A: Ravi Inukonda said Q4 was strong due to growth in restaurants, new verticals, international, and DashPass. Q1 affected by leap year and FX, but full-year outlook is confident.

Q: Repeat buying behavior in U.S. new verticals and profitability scale?

A: Ravi Inukonda said consumers are engaging with new verticals, spending more, and unit economics improved in 2024. Focus on scaling to drive free cash flow.

Q: Grocery business learnings and investments?

A: Tony Xu said grocery delivery is nascent, focusing on product improvements like accuracy, affordability, and ecosystem setup. Key learnings include ongoing product improvement and growing customer engagement.

Q: DashPass growth and GOV per MAU?

A: Tony Xu said focus on making product better to increase DashPass subscribers. Ravi Inukonda said GOV per MAU is a cohorted business, looking at retention and order frequency of cohorts.

Q: Ads roadmap, Dasher supply, and take rate?

A: Tony Xu talked about ads partnerships and product development. Ravi Inukonda said Q4 take rate affected by seasonal Dasher Pay, and focus on increasing profit dollars by driving efficiency and reinvestment.

Q: Budgeting priorities and buyback pace?

A: Tony Xu said prioritization continues to focus on product market fit and investing in key areas. Ravi Inukonda said capital allocation philosophy remains to invest for meaningful returns, and buyback is opportunistic and conservative.