DoorDash Inc

Previous wording

In addition to our Marketplaces, we offer Platform Services, which primarily includes DoorDash Drive and Wolt Drive, which are white-label delivery fulfillment services that enable merchants that have generated consumer demand through their own channels to fulfill this demand using our platform. Platform Services also includes DoorDash Storefront, which enables merchants to create their own branded online ordering experience, providing them with a turnkey solution to offer consumers on-demand access to e-commerce without investing in in-house engineering or fulfillment capabilities.

Current wording

In addition to our Marketplaces, we offer our Commerce Platform, which primarily includes DoorDash Drive and Wolt Drive, which are white-label delivery fulfillment services that enable merchants that have generated consumer demand through their own channels to fulfill this demand using our platform. The Commerce Platform also includes other services including Online Ordering, which enables merchants to create their own branded online ordering experience, providing them with a turnkey solution to offer consumers on-demand access to e-commerce without investing in in-house engineering or fulfillment capabilities.

Previous wording

Total Orders. We define Total Orders as all orders completed through our Marketplaces and Platform Services businesses over the period of measurement.

Current wording

Total Orders. We define Total Orders as all orders completed through our Marketplaces and Commerce Platform businesses over the period of measurement.

Previous wording

In the second quarter of 2024, Total Orders increased to 635 million, or 19% growth compared to the same quarter of 2023. The increase in Total Orders was driven primarily by growth in consumers and increased consumer engagement.

Current wording

In the third quarter of 2024, Total Orders increased to 643 million, or 18% growth compared to the same quarter of 2023. The increase in Total Orders was driven primarily by growth in consumers and growth in average consumer engagement.

Previous wording

Marketplace GOV. We define Marketplace GOV as the total dollar value of orders completed on our Marketplaces, including taxes, tips 1, and any applicable consumer fees, including membership fees related to DashPass and Wolt+. Marketplace GOV does not include the dollar value of orders, taxes and tips, or fees charged to merchants, for orders fulfilled through Drive and Storefront.

Current wording

Marketplace GOV. We define Marketplace GOV as the total dollar value of orders completed on our Marketplaces, including taxes, tips 1, and any applicable consumer fees, including membership fees related to DashPass and Wolt+. Marketplace GOV does not include the dollar value of orders, taxes and tips, or fees charged to merchants, for orders fulfilled through Drive and Online Ordering.

Previous wording

In the second quarter of 2024, Marketplace GOV increased to $19.7 billion, or 20% growth compared to the same quarter of 2023, driven primarily by growth in Total Orders.

Current wording

In the third quarter of 2024, Marketplace GOV increased to $20.0 billion, or 19% growth compared to the same quarter of 2023, driven primarily by growth in Total Orders.

Previous wording

In the second quarter of 2024, Net Revenue Margin increased to 13.3% from 13.0% in the same quarter of 2023, primarily due to increasing contribution from advertising revenue.

Current wording

In the third quarter of 2024, Net Revenue Margin increased to 13.5% from 12.9% in the same quarter of 2023, primarily due to increasing contribution from advertising revenue and improvements to logistics quality and efficiency.

Previous wording

In the second quarter of 2024, Contribution Profit increased to$825 million, compared to$620 million in the same quarter of 2023, driven primarily by growth in revenue, partially offset by increases in cost of revenue and sales and marketing.

Current wording

In the third quarter of 2024, Contribution Profit increased to$930 million, compared to$640 million in the same quarter of 2023, driven primarily by growth in revenue, partially offset by increases in cost of revenue.

Previous wording

Adjusted EBITDA. We define Adjusted EBITDA as net income (loss) including redeemable non-controlling interests, adjusted to exclude (i) certain legal, tax, and regulatory settlements, reserves, and expenses, (ii) loss on disposal of property and equipment, (iii) transaction-related costs (primarily consists of acquisition, integration, and investment related costs), (iv) impairment expenses, (v) restructuring charges, (vi) inventory write-off related to restructuring, (vii) provision for (benefit from) income taxes, (viii) interest income, net, (ix) other expense, net, (x) stock-based compensation expense and certain payroll tax expense, and (xi) depreciation and amortization expense.

Current wording

Adjusted EBITDA. We define Adjusted EBITDA as net income (loss) attributable to DoorDash, Inc. common stockholders, adjusted to include net income (loss) attributable to redeemable non-controlling interests and exclude (i) certain legal, tax, and regulatory settlements, reserves, and expenses, (ii) loss on disposal of property and equipment, (iii) transaction-related costs (primarily consists of acquisition, integration, and investment related costs), (iv) impairment expenses, (v) restructuring charges, (vi) inventory write-off related to restructuring, (vii) provision for (benefit from) income taxes, (viii) interest income, net, (ix) other expense, net, (x) stock-based compensation expense and certain payroll tax expense, and (xi) depreciation and amortization expense.

Previous wording

In the second quarter of 2024, Adjusted EBITDA increased to $430 million from $279 million in the same quarter of 2023, driven primarily by growth in Contribution Profit.

Current wording

In the third quarter of 2024, Adjusted EBITDA increased to $533 million from $344 million in the same quarter of 2023, driven primarily by growth in Contribution Profit.

Previous wording

In the second quarter of 2024, Free Cash Flow increased to$451 million, compared to Free Cash Flow of $311 million in the same quarter of 2023, driven primarily by an increase in net cash provided by operating activities.

Current wording

In the third quarter of 2024, we generated net cash provided by operating activities of $531 million and Free Cash Flow of $444 million, up from$398 million and$324 million, respectivelyin the same quarter of 2023. The increase in Free Cash Flow wasdriven primarily by an increase in net cash provided by operating activities.

Previous wording

Comparison of the Three and Six Months Ended June 30, 2023 and 2024

Current wording

Comparison of the Three and Nine Months Ended September 30, 2023 and 2024

Previous wording

In addition, we generate revenue from other sources, including our Platform Services, which primarily consists of our Drive and Storefront offerings. We generate revenue from Drive by collecting per-order fees from merchants to arrange for delivery services that fulfill demand generated through their own channels.

Current wording

In addition, we generate revenue from other sources, including our Commerce Platform, which primarily consists of our Drive and Online Ordering offerings. We generate revenue from Drive by collecting per-order fees from merchants to arrange for delivery services that fulfill demand generated through their own channels.

Previous wording

Revenue increased by$497 million, or 23%, during thesecond quarter of 2024, compared to thesame quarter of 2023. The increase was primarily driven by a 20% increase in Marketplace GOV. During thesecond quarter of 2024, revenue grew at a faster rate than Marketplace GOV during the same period primarily due to an increasing contribution from advertising revenue.

Current wording

Revenue increased by$542 million, or 25%, during thethird quarter of 2024, compared to thesame quarter of 2023. The increase was primarily driven by a 19% increase in Marketplace GOV. During thethird quarter of 2024, revenue grew at a faster rate than Marketplace GOV during the same period primarily due to an increasing contribution from advertising revenue and improvements to logistics quality and efficiency.

Previous wording

Revenue increased by $975 million, or 23%, during thefirst six months of 2024, compared to thesame period of 2023. The increase was primarily driven by a 20% increase in Marketplace GOV. For thefirst six months of 2024, revenue grew at a faster rate than Marketplace GOV during the same period primarily due to an increasing contribution from advertising revenue.

Current wording

Revenue increased by $1.5 billion, or 24%, during the first nine months of 2024, compared to the same period of 2023. The increase was primarily driven by a 20% increase in Marketplace GOV. For the first nine months of 2024, revenue grew at a faster rate than Marketplace GOV during the same period primarily due to an increasing contribution from advertising revenue and improvements to logistics quality and efficiency.

Previous wording

Cost of revenue, exclusive of depreciation and amortization, increased by $250 million, or 22%, for the second quarter of 2024, compared to the same quarter of 2023. The increase was primarily attributable to an increase of $215 million in order management costs, driven primarily by growth in Total Orders. Order management costs also increased due to an increase in insurance reserves and costs associated with our first-party distribution business.

Current wording

Cost of revenue, exclusive of depreciation and amortization, increased by $218 million, or 19%, for the third quarter of 2024, compared to the same quarter of 2023. The increase was primarily attributable to an increase of $157 million in order management costs and an increase of $35 million in platform costs, driven primarily by growth in Total Orders. Order management costs also increased due to an increase incosts associated with our first-party distribution business.

Previous wording

Cost of revenue, exclusive of depreciation and amortization, increased by$511 million, or 23%, during thefirst six months of 2024, compared to thesame period of 2023. The increase was primarily attributable to an increase of$452 million in order management costs, driven primarily by growth in Total Orders. Order management costs also increased due to an increase in insurance reserves and costs associated with our first-party distribution business.

Current wording

Cost of revenue, exclusive of depreciation and amortization, increased by$729 million, or 22%, during thefirst nine months of 2024, compared to thesame period of 2023. The increase was primarily attributable to an increase of$609 million in order management costs, driven primarily by growth in Total Orders. Order management costs also increased due to an increase in insurance reserves and costs associated with our first-party distribution business.

Previous wording

Sales and marketing expenses increased by $38 million, or 8%, for the second quarter of 2024, compared to the same quarter of 2023. The increase was primarily driven byan increaseof $17 million in advertising expenses and an increase of$13 million in personnel-related compensation expenses.

Current wording

Sales and marketing expenses increased by $34 million, or 8%, for the third quarter of 2024, compared to the same quarter of 2023. The increase was primarily driven byan increaseof $20 million in personnel-related compensation expensesand an increase of$12 million in advertising expenses.

Previous wording

Sales and marketing expenses increased by $46 million, or 5%, during thefirst six months of 2024, compared to thesame period of 2023. The increase was primarily driven byan increaseof$30 million in personnel-related compensation expenses, and an increase of$7 million in advertising expenses.

Current wording

Sales and marketing expenses increased by $80 million, or 6%, during thefirst nine months of 2024, compared to thesame period of 2023. The increase was primarily driven byan increaseof$50 million in personnel-related compensation expenses and an increase of$20 million in advertising expenses.

Previous wording

Research and development expenses increased by$82 million, or 16%, during thefirst six months of 2024, compared to thesame period of 2023. The increase was primarily driven by an increase of$78 million in personnel-related compensation expenses and allocated overhead.

Current wording

Research and development expenses increased by$121 million, or 16%, during thefirst nine months of 2024, compared to thesame period of 2023. The increase was primarily driven by an increase of$117 million in personnel-related compensation expenses and allocated overhead.

Previous wording

General and administrative expenses increased by$187 million, or 30%, during thefirst six months of 2024, compared to thesame period of 2023. The increase was primarily driven by an increase of$83 million in office lease impairment expenses, an increase of $60 million in legal, tax, and regulatory expenses, andan increase of$8 million in personnel-related compensation expenses and allocated overhead.

Current wording

General and administrative expenses increased by$213 million, or 23%, during thefirst nine months of 2024, compared to thesame period of 2023. The increase was primarily driven by an increase of$83 million in office lease impairment expenses, an increase of $61 million in legal, tax, and regulatory expenses, and an increase in personnel-related compensation expenses and allocated overhead, exclusive of stock-based compensation related to the CEO performance award, of$35 million, primarily driven by increased headcount.

Previous wording

Depreciation and amortization expenses increased by$12 million, or 9%, for thesecond quarter of 2024, compared to the same quarter of 2023. The increase was primarily driven by an increase of$17 millionin amortization expense related to increased capitalized software and website development costs.

Current wording

Depreciation and amortization expenses increased by$10 million, or 8%, for thethird quarter of 2024, compared to the same quarter of 2023. The increase was primarily driven by an increase of$12 millionin amortization expense related to increased capitalized software and website development costs.

Previous wording

Depreciation and amortization expenses increased by $31 million, or 12%, during thefirst six months of 2024, compared to thesame period of 2023. The increase was primarily driven by an increase of $39 million in amortization expense related to increased capitalized software and website development costs.

Current wording

Depreciation and amortization expenses increased by $41 million, or 11%, during thefirst nine months of 2024, compared to thesame period of 2023. The increase was primarily driven by an increase of $51 million in amortization expense related to increased capitalized software and website development costs.

Previous wording

Interest income, net increased by$15 million for thesecond quarter of 2024, compared to the same quarter of 2023. The increase was primarily driven by an increase in average interest rates during 2023, resulting in higher interest income earned on marketable securities in the second quarter of 2024.

Current wording

Interest income, net increased by$14 million for thethird quarter of 2024, compared to the same quarter of 2023. The increase was primarily driven by an increase in average interest rates during 2023, resulting in higher interest income earned on marketable securities in the third quarter of 2024.

Previous wording

Interest income, net increased by $33 million during thefirst six months of 2024, compared to thesame period of 2023. The increase was primarily driven by an increase in average interest rates during 2023, resulting in higher interest income earned on marketable securities in the first six months of 2024.

Current wording

Interest income, net increased by $47 million during the first nine months of 2024, compared to the same period of 2023. The increase was primarily driven by an increase in average interest rates during 2023, resulting in higher interest income earned on marketable securities in the first nine months of 2024.

Previous wording

The provision for income taxes for the first six months of 2024 is comparable to that in thesame period of 2023. The provision for income taxes is primarily attributable to positive pre-tax book income in the United States resulting in federal and state income taxes.

Current wording

The benefit from income taxes for the third quarter of 2024 was primarily driven by losses generated in non-U.S. jurisdictions for which a tax benefit can be realized. The provision for income taxes for the same quarter of 2023 was primarily attributable to positive pre-tax book income in the United States resulting in federal and state income taxes.

Previous wording

Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Further, these metrics have certain limitations in that they do not include the impact of certain expenses that are reflected in our condensed consolidated statements of operations. Thus, our adjusted cost of revenue, adjusted sales and marketing expense, adjusted research and development expense, adjusted general and administrative expense, Contribution Profit, Contribution Margin, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted EBITDA, and Free Cash Flow should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.

Current wording

Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Further, these metrics have certain limitations in that they do not include the impact of certain expenses that are reflected in our condensed consolidated statements of operations. Thus, our adjusted cost of revenue, adjusted sales and marketing expense, adjusted research and development expense, adjusted general and administrative expense, Contribution Profit, Contribution Margin, Adjusted

Previous wording

We define adjusted research and development expense as research and development expenses excluding stock-based compensation expense and certain payroll tax expense, and allocated overhead. We exclude stock-based compensation as it is non-cash in nature and we exclude allocated overhead as it is generally a fixed cost and is not directly impacted by Total Orders. We believe excluding such expenses provides a better period-to-period comparison of the core operating performance of our business.

Current wording

We define adjusted research and development expense as research and development expenses excluding stock-based compensation expense and certain payroll tax expense, and allocated overhead. We exclude stock-based compensation as it is non-cash in nature and we exclude allocated overhead as it is generally a fixed cost and is not directly impacted by

Previous wording

Adjusted EBITDA is a measure that we use to assess our operating performance and the operating leverage in our business. We define Adjusted EBITDA as net income (loss) including redeemable non-controlling interests, adjusted to exclude (i) certain legal, tax, and regulatory settlements, reserves, and expenses, (ii) loss on disposal of property and equipment, (iii) transaction-related costs (primarily consists of acquisition, integration, and investment related costs), (iv) impairment expenses, (v) restructuring charges, (vi) inventory write-off related to restructuring, (vii) provision for (benefit from) income taxes, (viii) interest income, net, (ix) other expense, net, (x) stock-based compensation expense and certain payroll tax expense, and (xi) depreciation and amortization expense.

Current wording

Adjusted EBITDA is a measure that we use to assess our operating performance and the operating leverage in our business. We define Adjusted EBITDA as net income (loss) attributable to DoorDash, Inc. common stockholders, adjusted to include net income (loss) attributable to redeemable non-controlling interests and exclude (i) certain legal, tax, and regulatory settlements, reserves, and expenses, (ii) loss on disposal of property and equipment, (iii) transaction-related costs (primarily consists of acquisition, integration, and investment related costs), (iv) impairment expenses, (v)

Previous wording

The following table provides a reconciliation of net loss including redeemable non-controlling interests to Adjusted EBITDA:

Current wording

The following table provides a reconciliation of net income (loss) attributable to DoorDash, Inc. common stockholders to Adjusted EBITDA, and a reconciliation of net income (loss) including redeemable non-controlling interests to Adjusted EBITDA:

Previous wording

As of June 30, 2024, our principal sources of liquidity were cash, cash equivalents, and marketable securities of $5.5 billion, which consisted of cash and cash equivalents of $3.4 billion, short-term marketable securities of $1.4 billion, and long-term marketable securities of $669 million. Additionally, funds held at payment processors of $396 million represent cash due from our payment processors for cleared transactions with merchants and consumers, as well as funds remitted to payment processors for Dasher payout. Cash and cash equivalents consisted of cash on deposit with banks, as well as institutional money market funds, commercial paper, corporate bonds and U.S. Treasury securities. Marketable securities consisted of certificates of deposit, commercial paper, corporate bonds, U.S. government agency securities, U.S. Treasury securities, and mutual funds.

Current wording

As of September 30, 2024, our principal sources of liquidity were cash, cash equivalents, and marketable securities of $5.8 billion, which consisted of cash and cash equivalents of $3.7 billion, short-term marketable securities of $1.3 billion, and long-term marketable securities of $795 million. Additionally, funds held at payment processors of $335 million represent cash due from our payment processors for cleared transactions with merchants and consumers, as well as funds remitted to payment processors for Dasher payout. Cash and cash equivalents consisted of cash on deposit with banks, as well as institutional money market funds, commercial paper, certificates of deposit and U.S. Treasury securities. Marketable securities consisted of certificates of deposit, commercial paper, corporate bonds, U.S. government agency securities, U.S. Treasury securities, and mutual funds.

Previous wording

We have generated significant operating losses from our operations as reflected in our accumulated deficit of $5.3 billion as of June 30, 2024. We have historically funded our operations from cash from operations as well as the issuance of equity securities, including in our initial public offering in December 2020. To execute on our strategic initiatives to continue to grow our business, we may incur operating losses and generate negative cash flows from operations in the future, and as a result, we may require additional capital resources. We believe our existing cash, cash equivalents, and marketable securities, along with the available borrowings under our revolving credit facility, will be sufficient to meet our working capital and capital expenditures needs for at least the next 12 months and beyond.

Current wording

We have generated significant operating losses from our operations as reflected in our accumulated deficit of $5.4 billion as of September 30, 2024. We have historically funded our operations from cash from operations as well as the issuance of equity securities, including in our initial public offering in December 2020. To execute on our strategic initiatives to continue to grow our business, we may incur operating losses and generate negative cash flows from operations in the future, and as a result, we may require additional capital resources. We believe our existing cash, cash equivalents, and marketable securities, along with the available borrowings under our revolving credit facility, will be sufficient to meet our working capital and capital expenditures needs for at least the next 12 months and beyond.

Previous wording

In February 2024, we announced the authorization of a share repurchase program for the repurchase of shares of our Class A common stock, in an aggregate amount up to $1.1 billion. Repurchases may be made from time to time through open market purchases or through privately negotiated transactions subject to market conditions, applicable legal requirements, and other relevant factors. Open market repurchases may be structured to occur in accordance with the requirements of Rule 10b-18 of the Exchange Act. We may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of our Class A common stock under this authorization. The timing and actual number of shares repurchased may depend on a variety of factors, including price, general business and market conditions, and alternative investment opportunities.

Current wording

In February 2024, we announced the authorization of a share repurchase program for the repurchase of shares of our Class A common stock, in an aggregate amount up to $1.1 billion. Repurchases may be made from time to time through open market purchases or through privately negotiated transactions subject to market conditions, applicable legal requirements, and other relevant factors. Open market repurchases may be structured to occur in accordance with the requirements of Rule 10b-18 of the Exchange Act. We may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of our Class A common stock under this authorization. The timing and actual number of shares repurchased may depend on a variety of factors, including price, general business and market conditions, and alternative investment opportunities. As of September 30, 2024, approximately $876 million remained available under the repurchase authorization.

Previous wording

Cash provided by operating activities was $1,083 million for the firstsix months of 2024. This consisted of a net loss including redeemable non-controlling interests of $183 million, offset by non-cash stock-based compensation expense of $554 million, non-cash depreciation and amortization expense of $282 million, non-cash reduction of operating lease right-of-use assets and accretion of operating lease liabilities of $52 million, non-cash office lease impairment expenses of $83 million, and other net non-cash expenses of $41 million, as well as $254 million net inflows from changes in operating assets and liabilities primarily driven by an increase in accrued liabilities and other current liabilities.

Current wording

Cash provided by operating activities was $1.6 billion for the first nine months of 2024. This consisted of a net loss including redeemable non-controlling interests of $22 million, offset by non-cash stock-based compensation expense of $828 million, non-cash depreciation and amortization expense of $420 million, non-cash reduction of operating lease right-of-use assets and accretion of operating lease liabilities of $77 million, non-cash office lease impairment expenses of $83 million, and other net non-cash expenses of $26 million, as well as $202 million net inflows from changes in operating assets and liabilities primarily driven by an increase in accrued expenses and other current liabilities, partially offset by increases in prepaid expenses and other current assets and accounts receivable, net.

Previous wording

$541 million, non-cash depreciation and amortization expense of $251 million, non-cash reduction of operating lease right-of-use assets and accretion of operating lease liabilities of $60 million, and other net non-cash expenses of $19 million, as well as $253 million net inflows from changes in operating assets and liabilities primarily driven by an increase in accrued liabilities and other current liabilities and a decrease in our funds held at payment processors.

Current wording

Cash provided by operating activities was $1.2 billion for thefirst nine months of 2023. This consisted of a net loss, including redeemable non-controlling interests, of $409 million, offset by non-cash stock-based compensation expense of $819 million, non-cash depreciation and amortization expense of $379 million, non-cash reduction of operating lease right-of-use assets and accretion of operating lease liabilities of $84 million, and other net non-cash expenses of $23 million, as well as $292 million net inflows from changes in operating assets and liabilities primarily driven by an increase in accrued liabilities and other current liabilities, partially offset by an increase in prepaid expenses and other current assets and payments for operating lease liabilities.

Previous wording

Cash used in investing activities was $219 million for thefirst six months of 2024, which primarily consisted of purchases of marketable securities of $969 million, purchases of property and equipment of $40 million, and cash outflows for capitalized software and website development costs of $105 million, partially offset by proceeds from maturities and sales of marketable securities of $903 million.

Current wording

Cash used in investing activities was $281 million for thefirst nine months of 2024, which primarily consisted of purchases of marketable securities of $1.5 billion, purchases of property and equipment of $72 million, and cash outflows for capitalized software and website development costs of $160 million, partially offset by proceeds from maturities and sales of marketable securities of $1.5 billion.

Previous wording

Cash used in investing activities was $145 million for thefirst six months of 2023, which primarily consisted of purchases of marketable securities of $930 million, purchases of property and equipment of $66 million, and cash outflows for capitalized software and website development costs of $97 million, partially offset by proceeds from maturities and sales of marketable securities of $965 million.

Current wording

Cash used in investing activities was $223 million for thefirst nine months of 2023, which primarily consisted of purchases of marketable securities of $1.6 billion, purchases of property and equipment of $94 million, and cash outflows for capitalized software and website development costs of $143 million, partially offset by proceeds from maturities and sales of marketable securities of $1.6 billion.

Previous wording

Cash provided by financing activities was $2 million for thefirst six months of 2024, which consisted of proceeds from exercise of stock options of $3 million and other financing activities of $6 million, offset by repurchases of our Class A common stock of $7 million.

Current wording

Cash used in financing activities was $211 million for thefirst nine months of 2024, which consisted of repurchases of our Class A common stock of $224 million, partially offset by proceeds from exercise of stock options of $7 million and other financing activities of $6 million.

Previous wording

Cash used in financing activities was $698 million for thefirst six months of 2023, which primarily consisted of repurchases of our Class A common stock of $693 million.

Current wording

Cash used in financing activities was $702 million for thefirst nine months of 2023, which primarily consisted of repurchases of our Class A common stock of $699 million.