DoorDash Away All!

A hard look at DoorDash’s (DASH) increasingly unrealistic adjustments

Covid provided the perfect environment for DoorDash (DASH) to grow its delivery business. Restaurants were staying open entirely on take-out and delivery food. There were plenty of unemployed people wanting to be “dashers” and others being paid to stay home who wanted their meals delivered to their front porch. Even after the effects of the pandemic have faded, the value of orders placed with DASH is growing rapidly, causing many to proclaim that the company is still in the early innings of its growth phase.

However, when we look a little deeper into the numbers, we see a company whose reported growth and profitability are being boosted by unrealistic non-GAAP adjustments- and the spread between these adjusted results and reality is widening. Also, investors would do well to seriously think about the multiple components behind DASH’s revenue and profits and what drives them. All of these components face pressure that could quickly eat into the company’s growth rate.

We will closely examine all these factors in our latest Peek Behind the Numbers below.