Why did DASH's earnings trend upward in 2024?

DoorDash's earnings trended upward in 2024 due to several key factors:

1. **Revenue Growth**: DoorDash experienced significant revenue growth, with a 25% year-over-year increase in the fourth quarter of 2024, reaching $2.87 billion. This growth was driven by a 21% increase in Gross Order Value (GOV) and a 23% increase in revenue in the fourth quarter of 2023, reaching $2.5 billion.
2. **Market Expansion**: The company's expansion into new markets and partnerships, such as with Dollar General, have enhanced its reach and captured new customer segments. This has increased accessibility to grocery delivery for SNAP recipients nationwide, potentially leading to higher order volumes.
3. **Strategic Partnerships**: DoorDash's partnerships with retailers like Dollar General and its acquisition of Tazz by Wolt reflect a strategic focus on expanding market share and diversifying services. These partnerships have bolstered the grocery delivery segment and enhanced the DashPass membership program.
4. **Operational Efficiency**: The company has demonstrated impressive operational efficiencies, which have translated into improved financial performance. For instance, DoorDash reported a 25.02% increase in revenue over the last twelve months as of Q2 2024, and a 21% increase in order volume in the third quarter of 2024.
5. **Advertising and Marketing**: The scaling of DoorDash's advertising business has attracted more advertisers to the platform, contributing to its revenue growth. This indicates a strategic focus on leveraging advertising to drive customer acquisition and retention.
6. **International Growth**: DoorDash's international business has shown positive contribution margins similar to those in the U.S., indicating potential for growth outside its domestic market. The company's international expansion has mirrored its U.S. gains, contributing to overall revenue growth.

In conclusion, DoorDash's earnings trend upward in 2024 due to robust revenue growth, strategic market expansion, operational efficiency, effective advertising, and successful international growth. These factors combined have enabled the company to achieve its second consecutive quarter of profitability, marking a significant turning point in its financial performance.