Live: Will Q2 Earnings Fuel DoorDash’s (DASH) Next Rally?
Key Points
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DoorDash reports after the bell. We expect earnings to hit at about 4:05 p.m. ET.
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Here’s the consensus figures from Wall Street for this quarter:
- Revenue: $3.16 billion
- Adjusted EPS: $1.07
- GAAP EPS: $.43
- Free Cash Flow: $477.6 million
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We’ll be reacting to earnings in real time, with news and analysis after the company reports. All you have to do is leave this page open and new updates will appear automatically.
Live Updates
DoorDash's Conference Call Starts Now
DoorDash’s conference call starts now. You can register to listen in here.
We will be listening in to the call so posts will be limited. If you leave this tab open a new post should automatically post later with our summary of the call.
We thank you for joining us today for this review of DoorDash’s Q2 earnings. We’re hosting several live blogs on 24/7 Wall St., so if you’re looking for analysis of your favorite stocks make sure to come back!
More on Last Quarter's Beat
Marketplace GOV last quarter was $24.2 billion, which beat expectations of $23.6 billion.
GAAP EPS of $.65 beat expectations of $.43.
It was truly a beat across the board for DoorDash.
DoorDash Gains Holding
We’re updating live blogs tonight across a number of companies and there have been some wild after hours price swings. Yet, gains of DoorDash are holding pretty firm, the company is up 4.3% as of 4:38 p.m. ET.
The company’s earnings call will start in 22 minutes.
More Focus on Guidance
DoorDash reported Marketplace GOV of $24.2 billion this quarter.
Next quarter it guided to $24.2 billion to $24.7 billion in GOV. That’s $24.45 billion at the midpoint, or about 1% growth.
1% growth versus this quarter’s revenue of $3.28 billion would be north of what Wall Street was expecting from the company next quarter, so guidance appears to be strong.
DoorDash's Q2 In Focus
DASH | DoorDash Q2’25 Earnings Highlights:
- Adj. EPS: $0.67 [✅]; UP +175% YoY
- Revenue: $3.3B [✅]; UP +25% YoY
- Adj. Gross Margin: 52.2% [✅]; UP +30 bps YoY
- Net Income: $0.285B [✅]; UP +281% YoY
- Adjusted EBITDA: $0.655B [✅]; UP +52% YoY
- Free Cash Flow: $0.355B; DOWN -21% YoY
Outlook:
- Marketplace GOV: $24.2B – $24.7B [➖]
- Our outlook assumes that aggregate consumer demand and key foreign currency rates remain relatively stable at current levels.
- We anticipate significant levels of ongoing investment in new categories and international markets.
Other Key Q2 Metrics:
- R&D Expenses: $0.351B [✅]; UP +16% YoY
- GAAP Gross Profit: $1.608B; UP +35% YoY
- GAAP Sales and Marketing Expense: $0.607B; UP +19% YoY
- GAAP General and Administrative Expense: $0.388B; DOWN -21% YoY
- GAAP Cost of Revenue: $1.616B; UP +17% YoY
CEO Commentary:
- Tony Xu: “In Q2 2025, we generated new quarterly records for Total Orders, Marketplace GOV, Revenue, and GAAP net income. We are proud of how far we have come and the work that has gone into building a platform that now serves hundreds of thousands of merchants, tens of millions of consumers, and millions of Dashers across over 30 countries every month.”
CFO Commentary:
- Prabir Adarkar: “The Y/Y and Q/Q increases in Net Revenue Margin were due primarily to improved logistics efficiency, increasing contribution from advertising revenue, and a reduction in credits and refunds as a percentage of Marketplace GOV.”
Earnings are Out - Shares Up 6%
We’ll be posting more on DoorDash earnings momentarily, shares are up 6% immediately.
DoorDash Matching the Nasdaq's Gains
It’s been a good day for technology stocks. The Nasdaq is up about 1.2% and DoorDash is closely tracking the broader tech market.
Shares of DoorDash started the day flat, but rallied shortly before noon. Overall they’re up 1.19% as of 2:43 p.m. ET. We’ll see if optimism during the trading day is a preview of how investors react to the company’s earnings tonight.
What Wall Street Expects in Q2
Here are the key figures Wall Street expects this quarter from DoorDash. Remember that going over these figures is considered an ‘earnings beat.’
- Revenue: $3.16 billion
- Adjusted EPS: $1.07
- GAAP EPS: $.43
- Free Cash Flow: $477.6 million
Looking ahead to next quarter, Wall Street expects DoorDash to guide to $3.23 billion in sales. Remember that guidance is often more important than what the company reported last quarter.
DoorDash (Nasdaq: DASH) shares have been on fire. The company’s stock is up 51% year-to-date headed into earnings today. Better yet, across the past year shares are up 110%.
Can the momentum continue? A big test will come tonight when the company reports its second quarter earnings. We’ll be reacting to earnings in real time, with news and analysis after the company reports. All you have to do is leave this page open and new updates will appear automatically.
We expect DoorDash earnings to hit at about 4:05 p.m. ET.
Before looking at what Wall Street expects from the company this quarter, let’s look back at what the company last reported. DoorDash last reported earnings on May 6th, and while shares dropped the next day, they’re up 36% since.
DASH | DoorDash Q1’25 Earnings Highlights:
- Adj. EPS: $0.44 [✅]; [UP] +N/A% YoY
- Revenue: $3.0B [✅]; [UP] +21% YoY
- Comparable Sales: +/-N/A% [➖]
- Adj. Gross Margin: 51.9% [✅]; [UP] +30 bps YoY
- Net Income: $0.193B [✅]; [UP] +N/A% YoY
- Free Cash Flow: $0.494B; [UP] +N/A% YoY
Q1’25 Outlook:
- Revenue: $3.0B
- We expect revenue growth to continue driven by strong consumer demand and expansion into new categories.
- Our focus remains on enhancing the quality and breadth of our offerings to drive long-term value.
Q1 Segment Performance:
- U.S. Marketplace Revenue: $2.5B [✅]; [UP] +21% YoY
- International Marketplace Revenue: $0.5B [✅]
Other Key Q1 Metrics:
- Adj. Operating Income: $0.155B [✅]
- Adj. Operating Expenses: $2.877B [✅]
- R&D Expenses: $0.306B [✅]; [UP] +10% YoY
- Effective Tax Rate: 3.0% (vs. 7.0% YoY)
- GAAP Gross Profit: $1.478B [✅]; [UP] +31% YoY
- GAAP Sales and Marketing Expense: $0.586B [✅]; [UP] +16% YoY
- GAAP General and Administrative Expense: $0.332B [✅]; [UP] +4% YoY
CEO Commentary:
- Tony Xu: “We are very pleased with our financial performance and ability to execute against key strategic priorities so far in 2025. Our relentless focus on building great products for consumers, merchants, and Dashers is reflected in our record results.”
CFO Commentary:
- Prabir Adarkar: “The growth in our revenue and adjusted EBITDA demonstrates our strong operational execution and the effectiveness of our strategic initiatives. We are excited about the future as we continue to expand our offerings.”
Other Executives:
- Shivangi Gupta, VP of Strategy: “The acquisitions of SevenRooms and Deliveroo will significantly enhance our capabilities and expand our market presence, allowing us to better serve our customers.”
Eric Bleeker has been investing for more than 20 years. He began his career working at Microsoft before joining Motley Fool, one of the largest publishers of financial research. In his 15 years at Motley Fool Eric served as the General Manager for Fool.com and led coverage in the Technology & Telecom sector. In addition, he was a featured columnist and has hosted dozens of investing seminars attended by more than a million total investors. Eric has more than 1,000 financial bylines to his name and has been featured in The Wall Street Journal, CNBC, Fox Business, and many other leading publications. He is currently focused on artificial intelligence investing and is a CFA Charterholoder.
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