DoorDash Earnings: Q1'25 Revenue Surges, Eyes Global Expansion
- Hardik Shah
- May 7
- 3 min read
TL;DR
Record-breaking quarter with Total Orders up 18% and revenue rising 21% year-over-year to $3.0 billion.
Strategic acquisitions: DoorDash announced plans to acquire Deliveroo and SevenRooms to strengthen global footprint and hospitality tech capabilities.
EBITDA and profit momentum: Adjusted EBITDA grew 59% to a record $590 million, with net income swinging to $193 million from a loss last year.
Business Overview
DoorDash (NASDAQ: DASH) is a leading local commerce platform connecting consumers with merchants across restaurants, grocery, convenience, and other categories. Its offerings include:
DoorDash Marketplace for food delivery and multi-category commerce.
DashPass & Wolt+ membership programs for frequent users.
Commerce Platform solutions such as DoorDash Drive, Storefront, and soon, SevenRooms.
The company operates in over 40 global markets, with growing strength internationally and category expansion beyond restaurants.
DoorDash Earnings - Q1'25 Highlights
DoorDash continues to build on the profitability momentum we highlighted in Q4 2024, where it first achieved consistent GAAP net income. The company’s Q1 2025 results underscore this shift, as it further scales international markets and expands membership programs, while balancing growth with disciplined capital allocation.
Total Orders: 732 million, +18% YoY.
Marketplace GOV: $23.1 billion, +20% YoY.
Revenue: $3.0 billion, +21% YoY.
Net Income: $193 million vs. $(23) million in Q1 2024.
Adjusted EBITDA: $590 million, +59% YoY.
Margins:
Net revenue margin remained flat YoY at 13.1% but down sequentially due to affordability initiatives and category mix.
Gross margin held steady at 6.4% of GOV.
"The formula for us has always been: grow the business while continuing to increase overall profit dollars." — Ravi Inukonda, CFO
Forward Guidance - Q2'25
Marketplace GOV: $23.3B - $23.7B
Adjusted EBITDA: $600M - $650M
Net revenue margin is expected to increase sequentially as seasonality, product improvements, and unit economics improve.
Management reaffirmed confidence in scaling globally while maintaining profitability discipline.
Operational Performance
Grew U.S. and international marketplaces, with international MAUs growing at a double-digit pace.
Accelerated grocery category performance, with more consumers and higher per-order spending on perishables.
Expanded DashPass and Wolt+ memberships, reducing churn and driving increased order frequency.
Enhanced service quality and personalization, leading to faster delivery and lower defect rates.
"We are in the earliest innings of connecting every local business to every local consumer." — Tony Xu, CEO
Market Insights
Despite tariff concerns, consumer demand remained strong and resilient:
Food and convenience categories continue to be considered essential and less price-sensitive.
DoorDash’s affordability and quality initiatives, especially in grocery, are driving share gains.
International markets, especially Europe via Wolt and soon Deliveroo, are expected to fuel growth as DoorDash applies its playbook to improve unit economics and scale.
"We believe that if we do it in a disciplined way... we could improve the underlying profit potential [of Deliveroo markets] as well." — Tony Xu, CEO
Strategic Initiatives
Deliveroo acquisition: $2.9B offer to expand in Europe and Middle East with a complementary footprint.
SevenRooms acquisition: $1.2B deal to add advanced hospitality SaaS tools to help merchants manage guest relationships and grow profitability.
DashPass evolution: Broadened value proposition driving subscriber growth and stickiness.
Product and logistics investments: Aimed at exceeding the in-store grocery experience and improving merchant/consumer satisfaction.
Capital Allocation
Share Buyback Authorization: $5.0B authorized, though no repurchases yet.
Cash position: $4.7B in cash and equivalents after acquisitions.
Capex increase: Due to hardware refresh and autonomous delivery investments.
"Minimum cash target is ~$1 billion for working capital, rest to invest in long-term shareholder value." — Ravi Inukonda, CFO
The Bottom Line
DoorDash delivered strong Q1 results with record orders, profitability growth, and strategic acquisitions that bolster its global ambitions. While affordability initiatives pressured revenue margins, the company remains focused on scaling profitable growth through operational improvements, international expansion, and deeper merchant relationships. Deliveroo and SevenRooms are expected to unlock new profit pools and extend DoorDash's leadership in local commerce and hospitality tech.
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