What drove DASH's earnings surprise in 2024?

**Doordash's earnings surprise in 2024 can be attributed to several key factors:**

1. **Revenue Growth**: Doordash's total revenue for the fourth quarter of 2024 (Q4) was $2.87 billion. This growth was primarily driven by a 24.17% increase in revenue year-over-year, reaching $10.72 billion. The company's ability to sustain growth and improve profitability was evident, with Gross Order Value (GOV) reaching $20.0 billion, marking a 19% year-over-year increase.

|code|Ticker|Name|Date|Revenue Surprise|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|DASH|DASH.O|Doordash|2024 Q1|6.3E7|2.513E9|185|
|DASH|DASH.O|Doordash|2024 Q2|9.0E7|2.63E9|185|
|DASH|DASH.O|Doordash|2024 Q3|4.6E7|2.706E9|185|
|DASH|DASH.O|Doordash|2024 Q4|3.2E7|2.873E9|185|

2. **Segmental Performance**: Doordash's revenue by business segment showed the core business contributing significantly to the overall revenue. This indicates that the company's focus on diversifying its delivery modes and reducing emissions through strategic partnerships, as seen with Coco Robotics, has been successful in enhancing its marketplace offering.
3. **Strategic Partnerships**: The company's strategic partnerships, such as with Domino's Pizza, have allowed for the expansion of service offerings and market penetration. These collaborations not only enhance the company's market reach but also contribute to the growth of its gross order value and revenue.
4. **Operational Efficiency**: Doordash has been improving operational efficiency, which has reflected in its financial performance. The company's EBITDA showed a 55% year-over-year increase, and net income (MRQ) was $139 million. This improvement in profitability can be attributed to enhanced operational efficiency and the expansion of higher-margin business segments such as advertising.

|code|Ticker|Name|Date|Net Income|market_code|
|---|---|---|---|---|---|
|DASH|DASH.O|Doordash|2024 Q1|-2.5E7|185|
|DASH|DASH.O|Doordash|2024 Q2|-1.58E8|185|
|DASH|DASH.O|Doordash|2024 Q3|1.61E8|185|
|DASH|DASH.O|Doordash|2024 Q4|1.39E8|185|

5. **Market Expansion**: Doordash's expansion into new verticals, particularly in the grocery and convenience store segments, has been growing at high double-digit rates. This strategic move has allowed the company to capitalize on the growing demand for online food delivery and expand its market share.
6. **Advertising Business**: The scaling of DoorDash's advertising business has contributed to its revenue growth. High returns on ad spend have attracted more advertisers to the platform, supporting the faster revenue growth rate.

In conclusion, Doordash's earnings surprise in 2024 can be attributed to strong revenue growth, strategic partnerships, operational efficiency, and market expansion. These factors collectively contributed to the company's ability to sustain growth and improve profitability, marking a key turning point in its journey toward sustained profitability.