DoorDash Reports Strong Q4 Earnings Amid Slight EPS Miss

DoorDash shows promising revenue growth in its Q4 earnings report. Despite slightly missing EPS expectations, the company signals strong operational improvements and positive future guidance, indicating further growth potential.

Date: 12-02-2025

AI Rating: 7

Earnings Per Share (EPS)
DoorDash's EPS for Q4 2024 was reported at $0.33, which is slightly below the analysts' estimate of $0.34. This slight miss could raise concerns for some investors but is noted alongside significant growth in other metrics.

Revenue Growth
The company reported a robust revenue of $2.87 billion, exceeding analysts' estimates of $2.84 billion, marking a year-over-year increase of 24.8%. This strong growth reflects the company's expanding market presence and increasing user engagement, which is a positive signal for investors.

Net Income
For the first time, DoorDash achieved a positive net income of $141 million, contrasting with a $154 million loss in the prior-year period. This turnaround indicates improved operational efficiency and profitability, crucial factors that could enhance investor confidence.

Profit Margins
The gross profit increased by 33.7% year over year to $1.37 billion, with gross profit margins improving from 5.8% to 6.4%. This improvement in profit margins can be seen as a positive development, showing the company's ability to generate higher returns on its revenues.

Adjusted EBITDA
DoorDash reported an adjusted EBITDA of $566 million, which marks a significant improvement from $363 million year over year. This strong performance highlights enhanced operational effectiveness and growth potential.

Overall, DoorDash's financial results reveal a company on an upward trajectory, demonstrating the ability to grow revenues and reduce losses while improving critical profitability metrics. With a positive outlook for future quarters, investors may view these developments favorably.

Stocks: DASH