DoorDash Monthly Users Hit All-Time High
Technology company DoorDash, Inc. has released its financial results for the quarter and fiscal year ended Dec. 31, 2023.
DoorDash boosted monthly active users to an all-time high of over 37 million in December 2023 from over 32 million in December 2022, with an increase in average order frequency. DashPass and Wolt+ members also grew to an all-time high of over 18 million at the end of 2023 from over 15 million at the end of 2022. (DoorDash purchased Finnish delivery startup Wolt in 2022 for $3.5 billion to expand its European operations.) The combination of growing users and higher average engagement drove Q4 2023 total orders up 23% year-over-year (YoY) to 574 million. The gross value of those orders — a key metric for online delivery firms — jumped 22% to $17.6 billion.
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Improvements to logistics efficiency and a growing contribution from advertising helped drive Q4 2023 revenue up 27% YoY to $2.3 billion. During the quarter, DoorDash unveiled new advertising solutions that better enable CPG brands to participate and compete in the quick-commerce space. Net revenue margin in Q4 increased to 13.1% from 12.6% in Q4 2022.
GAAP general and administrative expense was $320 million in Q4 2023, up 7% from $300 million in Q4 2022 and 11% from $289 million in Q3 2023.
Meanwhile, Q4 adjusted EBITDA reached an all-time high of $363 million compared to $117 million last year and $344 million in previous quarter.
In letter to shareholders, Co-Founder, CEO and Board Chair Tony Xu and CFO Ravi Inukonda wrote: “In 2023, we helped generate nearly $50 billion in sales for hundreds of thousands of local merchants, provided opportunities for over 7 million Dashers to earn over $15 billion, and allowed tens of millions of consumers to save hundreds of millions of hours that they could use to spend time with their families, hang out with friends, or write letters to shareholders. We are incredibly proud of this, particularly because we believe the vast majority of the economic activity we foster stays in the local economy, helping fuel its health and vibrancy.”
DoorDash is currently forecasting gross order value of $18.5 billion to $18.9 billion for Q1. Adjusted EBITDA is expected to be $320 million and $380 million.
As it plots expansion outside its core restaurant business in United States, DoorDash reportedly plans to expand further into grocery in 2024. The company recently announced a new agreement with retail conglomerate Ahold Delhaize USA to make an additional on-demand grocery delivery marketplace available to customers at each of its local omnichannel brands – Food Lion, Hannaford, Giant Food, The Giant Co. and Stop & Shop. Delivery from DoorDash is expected to be available to customers of all brands by March.
San Francisco-based DoorDash connects consumers with their favorite local businesses in more than 25 countries across the globe.
