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

DoorDash (DASH), ranking 180th by market capitalization, reported its fiscal 2025 Q1 earnings on May 7th, 2025. Despite achieving a substantial turnaround in net income, DoorDash's revenue fell slightly short of Wall Street expectations. The company announced acquisitions of Deliveroo and SevenRooms, aiming to bolster international presence and service capabilities. DoorDash's guidance indicated stronger order demand for Q2 2025, although projected adjusted EBITDA missed analyst expectations, reflecting ongoing investments in growth initiatives. The acquisitions signal a strategic expansion to enhance global reach.

Revenue
The total revenue of DoorDash rose by 20.7% to $3.03 billion in 2025 Q1, compared to $2.51 billion in the same quarter last year.

Earnings/Net Income
DoorDash returned to profitability with an EPS of $0.46 in 2025 Q1, reversing from a loss of $0.06 per share in 2024 Q1, marking an 866.7% positive change. The company achieved a net income of $192 million in 2025 Q1, representing an 868.0% positive swing from the net loss of $-25 million in 2024 Q1. This performance highlights significant earnings improvement.

Price Action
The stock price of DoorDash dropped 6.73% during the latest trading day, fell 8.24% during the most recent full trading week, and increased 8.48% month-to-date.

Post-Earnings Price Action Review
Over the past five years, investing in DASH shares following a quarterly revenue drop and holding for 30 days has yielded moderate returns, albeit with high volatility and risk. The strategy's compound annual growth rate (CAGR) was 7.64%, trailing the benchmark by 12.80 percentage points. It experienced a maximum drawdown of -12.46% and a Sharpe ratio of 0.46, underscoring the need for prudent risk management in such volatile scenarios.

CEO Commentary
DoorDash's CEO highlighted the strong performance in Q1 2025, noting an 18% year-over-year increase in total orders, driven by consumer growth and engagement. The CEO emphasized the 20% expansion of Marketplace Gross Order Value (GOV) to $23.1 billion, reflecting strong market positioning. He acknowledged challenges in meeting revenue consensus but expressed confidence in the adjusted gross profit growth of 28.6% year-over-year. The CEO conveyed optimism regarding upcoming acquisitions of Deliveroo and SevenRooms, which are expected to enhance DoorDash's capabilities and market reach.

Guidance
For Q2 2025, DoorDash expects Marketplace GOV to range between $23.3 billion and $23.7 billion, with anticipated growth in net revenue margin both year-over-year and sequentially. Adjusted EBITDA is projected to fall between $600 million and $650 million, indicating growth as a percentage of Marketplace GOV. The company expects stock-based compensation expenses for 2025 to be between $1.1 billion and $1.2 billion, while depreciation and amortization expenses are anticipated to range from $600 million to $640 million.

Additional News
DoorDash announced significant M&A activity with the acquisition of U.K.-based Deliveroo for $3.9 billion and New York-based hospitality software firm SevenRooms for $1.2 billion. These strategic moves aim to expand DoorDash's global footprint and enhance its service offerings. The Deliveroo acquisition will increase DoorDash's presence in Europe, Asia, and the Middle East, while SevenRooms will strengthen its restaurant management capabilities. DoorDash expects these acquisitions to close later this year, marking the largest deals since the purchase of Wolt Enterprises in 2022. These expansions are poised to bolster DoorDash's competitive positioning and drive future growth.