DoorDash, Inc. Q2 FY2025 earnings call

• U.S. marketplace growth driven by product improvements in selection, affordability, delivery quality, etc. • Ads business has exceeded $1 billion annualized revenue run rate, with focus on best consumer experience and leveraging Symbiosys acquisition for better marketing. • AI applications in product design, operational processes (e.g., onboarding, inventory), and organizational productivity. • New verticals growing fast, with strong cohort performance in terms of user growth and order frequency. • DashPass showing strength with underlying product improvements driving membership growth. • Deliveroo acquisition expected to be managed with focus on long-term margin dollars. • International business (Wolt) performing well with growth in users and order frequency, Wolt+ subscription program growing. • SevenRooms acquisition unlocking new B2B opportunities in commerce platform. • DashPass growth driven by making the product more useful and building partner ecosystem after achieving product utility. • Robotics and drone delivery initiatives in development with focus on end-to-end system solutions.

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

• Expect to close Deliveroo acquisition in Q4, with focus on building best product experience and improving order rates and unit economics. • Goal is to maximize long-term margin dollars, not short-term unit margins. • H2 take rate expected to be higher than H1, driven by factors like Dasher cost seasonality, product improvements reducing credits/refunds, and ads becoming a larger portion.

• Forward-looking statements subject to risks and uncertainties described in SEC filings, including those in most recent Form 10-K and 10-Qs. No specific operational failures discussed in detail.

Q: On U.S. marketplace orders accelerating, could you point to specific examples of personalization and what drove membership growth and frequency?

A: Tony mentioned improvements across products over years, focusing on product utility, selection, affordability, delivery quality, etc.

Q: On advertising revenue, thoughts on scaling on-platform and off-site ads after Symbiosys acquisition?

A: Tony said focus is on best consumer experience, Symbiosys acquisition helps in being the best marketer for merchants and advertisers.

Q: AI use in improving user experience and operational efficiencies?

A: Tony talked about AI in product design, rethinking physical world processes, and organizational productivity.

Q: New verticals contribution to new customer growth?

A: Ravi said new verticals growing fast, with strong cohort performance in user and order frequency growth.

Q: DashPass cohorts trend?

A: Ravi said DashPass has solid quarter with underlying product improvements driving membership and cohort growth.

Q: Surprise on new customer cohorts durability?

A: Tony said not surprised, large market runway with continued product improvement.

Q: Net revenue margin expansion for back half?

A: Ravi explained factors like Dasher cost seasonality, product improvements reducing credits, and ads growth driving take rate.

Q: Operating expenses and headcount growth?

A: Ravi said OpEx is ~2% of GOV long term, focus on leverage and efficiency; Tony mentioned growth in businesses requiring new problem-solving headcount.

Q: Wolt business improvements and U.S. frequency?

A: Ravi said Wolt had strong quarter with user and order frequency growth; Tony said frequency growth from multiple factors like new categories, DashPass, and product improvements in use cases.

Q: SevenRooms acquisition impact and new verticals profitability?

A: Tony said SevenRooms unlocks B2B commerce opportunities; Ravi said new verticals unit economics improving with scale.

Q: DashPass growth methods and co-marketing?

A: Tony said DashPass growth from making product more useful, with partner ecosystem building after product utility.

Q: Coco Robotics partnership and AOV?

A: Tony said robotics launch going well; Ravi said AOV growth from mix shift to new verticals.

Q: Retail business state and drone delivery?

A: Tony said retail is early stage growing fast; Ravi said excited about drone delivery regulatory progress.

Q: Challenges in product improvement?

A: Tony said daily challenges in improving product based on customer feedback, with opportunities everywhere.