On November 1, 2023, DoorDash Inc (DASH, Financial) released its Q3 2023 financial results, demonstrating strong year-over-year growth in Total Orders, Marketplace GOV, and revenue. The company's continued focus on expense discipline and broad-based growth contributed to an improvement in GAAP net loss and a record high in Adjusted EBITDA.
Financial Highlights
DoorDash Inc (DASH, Financial) reported a 27% year-over-year increase in revenue, reaching $2.2 billion in Q3 2023. Total Orders and Marketplace GOV both grew by 24% year-over-year, reaching 543 million and $16.8 billion respectively. The company's Net Revenue Margin also increased to 12.9% from 12.6% in Q3 2022.
The GAAP net loss including redeemable non-controlling interests was significantly reduced to $75 million, compared to $296 million in Q3 2022. Adjusted EBITDA reached an all-time high of $344 million, up from $87 million in Q3 2022.
Performance Analysis
DoorDash Inc (DASH, Financial) attributed its strong performance to excellent execution and continued investment, which allowed the company to serve more consumers on more occasions than at any time in its history. The company's broad-based growth and continued focus on expense discipline drove strong year-over-year growth in Total Orders, Marketplace GOV, and revenue in Q3 2023.
Improvements in logistics efficiency and a growing contribution from advertising helped drive revenue up by 27% year-over-year in Q3 2023. The combination of efficiency gains and disciplined fixed cost management improved GAAP net loss including redeemable non-controlling interests to $75 million in Q3 2023, compared to a GAAP net loss including redeemable non-controlling interests of $296 million in Q3 2022.
Financial Outlook
For Q4 2023, DoorDash Inc (DASH, Financial) expects Marketplace GOV to be between $17.0 billion and $17.4 billion, and Adjusted EBITDA to be between $320 million and $380 million. The company plans to continue investing in new categories and international markets.
However, DoorDash Inc (DASH, Financial) cautioned investors that consumer spending in any of its geographies could deteriorate relative to its outlook, which could drive results below its expectations. Additionally, the company's increasing international exposure heightens risks associated with operating in foreign markets, including geopolitical and currency risks.
Explore the complete 8-K earnings release (here) from DoorDash Inc for further details.
