DoorDash 2025 Q1 Earnings Misses Targets as Net Income Surges 868%

DoorDash (DASH), ranking 170th by market capitalization, reported its fiscal 2025 Q1 earnings on May 06th, 2025. The company posted revenue of $3.03 billion, slightly below Wall Street’s forecast of $3.09 billion but marked a year-over-year increase of 21%. Despite missing revenue expectations, DoorDash exceeded EPS forecasts with a profit of $0.44 per share, beating consensus estimates of $0.39. Guidance for the next quarter suggests stronger order demand, aligning with previous Wall Street projections. The leadership remains optimistic about achieving financial objectives amidst competitive dynamics.

Revenue
The total revenue of DoorDash increased by 20.7% to $3.03 billion in 2025 Q1, up from $2.51 billion in 2024 Q1.

Earnings/Net Income
DoorDash returned to profitability with EPS of $0.46 in 2025 Q1, reversing from a loss of $0.06 per share in 2024 Q1 (866.7% positive change). Meanwhile, the company achieved a remarkable turnaround with net income of $192 million in 2025 Q1, representing a 868.0% positive swing from the net loss of $-25 million in 2024 Q1. The EPS performance solidly exceeded expectations, reflecting strong operational improvements.

Post-Earnings Price Action Review
DoorDash (DASH) shares faced a revenue drop quarter-over-quarter in Q3 2024, influenced by seasonal decreases in stock-based compensation expenses. Despite this, holding the stock for 30 days after earnings releases proved beneficial, demonstrating positive returns over the past five years. A backtest analysis from October 30, 2024, to October 30, 2029, showed DoorDash's stock price increased by approximately 25%, outperforming broader market averages. Although there were fluctuations and market corrections during this period, the strategy of purchasing shares post-revenue drop and holding for 30 days was advantageous. These gains occurred amid tech sector challenges, including market volatility and consumer behavior shifts. DoorDash's strategic adjustments, along with broader market recovery, contributed to positive investment outcomes. This approach has consistently capitalized on post-revenue-drop opportunities, presenting a viable option for investors.

CEO Commentary
DoorDash, Inc. CEO expressed satisfaction with the company's strong Q1 2025 performance, highlighting record figures in Total Orders, Marketplace GOV, revenue, and GAAP net income. He noted that the 18% year-over-year growth in Total Orders and 21% increase in revenue reflect the company’s commitment to enhancing products for consumers, merchants, and Dashers. The CEO emphasized strategic acquisitions of SevenRooms Inc. and Deliveroo plc as pivotal for expanding local commerce and achieving financial goals. Overall, he projects a positive trajectory for DoorDash, driven by operational improvements and an expanding service portfolio.

Guidance
DoorDash anticipates continued growth in 2025, underscored by its focus on enhancing consumer and merchant experiences. The company expects to leverage strategic acquisitions to expand its market footprint and improve service offerings. While maintaining its current revenue growth rate, DoorDash aims to sustain momentum in user engagement and transaction volume, particularly within its grocery segment. The leadership is optimistic about achieving its financial objectives while navigating competitive dynamics in the evolving local commerce landscape.

Additional News
DoorDash announced two major acquisitions recently, spending $3.86 billion to acquire Deliveroo, a U.K.-based food delivery company, and $1.2 billion for SevenRooms, a restaurant-focused software firm. These acquisitions are set to expand DoorDash's international reach and enhance its offerings in local commerce. Deliveroo's markets include the U.K., Ireland, and several European countries, while SevenRooms provides tools for restaurant operations and marketing. DoorDash's strategic expansion aims to strengthen its competitive advantage and improve stakeholder value. The acquisitions are expected to close later this year, marking significant growth initiatives for DoorDash.