What drove DASH's earnings growth in 2024?

DoorDash's earnings growth in 2024 was driven by several key factors: 1. **Revenue Growth**: DoorDash experienced a significant increase in revenue, reaching $2.5 billion in Q1 2024, marking a 23% year-over-year growth. This growth was fueled by a 21% rise in Total Orders and a 21% increase in Marketplace Gross Order Value (GOV). 2. **Market Expansion**: The company's expansion into the grocery sector was a major contributor to its growth. DoorDash reported triple-digit year-on-year growth in the grocery sector for the third consecutive quarter. This strategic move into groceries complemented its existing food delivery business and opened up new markets. 3. **International Growth**: DoorDash's international business grew substantially, with several countries showing contribution margin profitability. This international expansion not only increased revenue but also diversified the company's market presence and reduced reliance on the U.S. market. 4. **Partnerships and Acquisitions**: Strategic partnerships, such as those with Lyft and streaming services, enhanced the DashPass membership program and attracted new consumer cohorts. The acquisition of Tazz by Wolt allowed DoorDash to expand its market share in Europe. 5. **Operational Efficiency**: DoorDash improved its operational efficiency, as evidenced by enhanced profitability metrics. The company's Adjusted EBITDA increased to $371 million in Q1 2024, up from $204 million in the previous year. This improvement was due to reduced regulatory costs and operational efficiencies. 6. **Advertising and Cost Management**: The company's focus on advertising and efficient Dasher costs contributed to revenue growth outpacing Gross Order Value (GOV) growth. This strategic approach to cost management and revenue enhancement was crucial in boosting profitability. In summary, DoorDash's earnings growth in 2024 was driven by robust revenue growth, strategic market expansion, operational efficiency, and effective cost management.