DoorDash reported its Q1 2025 earnings with revenue reaching $3.03 billion, marking a 21% year-over-year increase.This figure slightly missed Wall Street’s expectation of $3.09 billion. However, the company achieved a net income of $193 million, a significant turnaround from a $23 million loss in the same quarter last year. Earnings per share stood at $0.44, surpassing analyst estimates of $0.39. Total orders grew by 18% to 732 million, and the marketplace gross order value (GOV) increased by 20% to $23.1 billion.
In terms of segment performance, DoorDash’s revenue streams are diversified. The primary sources include commissions from restaurants, delivery and service fees from customers, subscription fees from DashPass members, and advertising revenue from merchants. The company also reported strong growth in its grocery delivery segment, with more consumers ordering groceries than ever before. Additionally, international markets showed robust growth, with Wolt+ memberships more than doubling compared to the previous year.
Looking ahead, DoorDash provided guidance for Q2 2025, expecting marketplace GOV between $23.3 billion and $23.7 billion, and adjusted EBITDA ranging from $600 million to $650 million. The company anticipates continued investment in new categories and international markets, while also acknowledging potential risks related to consumer spending and international operations.
Despite the positive earnings, DoorDash’s stock experienced a 5% drop in premarket trading following the earnings release. However, the stock has shown strong performance overall, gaining 22% in 2025 to date and over 80% in the past year. The company’s stock is part of the IBD 50 list of top growth stocks, reflecting investor confidence in its growth trajectory.
CEO Tony Xu highlighted the company’s strategic acquisitions as a significant factor in its performance. The acquisition of Deliveroo for $3.9 billion is expected to expand DoorDash’s presence in Europe, Asia, and the Middle East, operating in 40 countries. Additionally, the purchase of SevenRooms for $1.2 billion aims to enhance merchant offerings and support in-store sales and customer relations. These moves mark DoorDash’s largest acquisitions since it bought Wolt Enterprises in 2022
The stock has a strong cup pattern and should be bullish, but weak guidance has caused a move lower and should move lower to reverse hopefully in the $189 zone.
