DoorDash (DASH, Financial) reported its first-ever profit since going public, delivering a strong Q3 2024 and marking a key turning point in its journey toward sustained profitability. This achievement was driven by significant growth across both food and non-food segments, including grocery and convenience deliveries, strengthening its foothold in last-mile logistics.
Revenue exceeded Wall Street expectations by reaching $2.7 billion, a 25% YoY growth. It was fueled by a record numbers of DashPass subscribers, indicating strong consumer retention and order frequency. International expansion mirrored US gains, and total marketplace GOV increased 19% YoY, with a 21% increase int order volume. The faster revenue growth rate was supported by the scaling of DoorDash's advertising business, where high returns on ad spend attracted more advertisers to the platform.
DoorDash's strategy of diversifying services is clearly paying off, meeting evolving customer needs and driving user retention across an expanding base. Growing faster than peers, DoorDash gained market share in nearly all its operating regions.
Management highlighted new product initiatives aimed at last-mile logistics and operational efficiencies, positioning DoorDash for continued growth beyond food delivery. Looking ahead, DoorDash expects sustained demand as it leverages its platform and market presence to capture further opportunities in the competitive delivery landscape.
