DoorDash's Q2 Earnings Call: Our Top 5 Analyst Questions

DoorDash’s second quarter was marked by revenue and non-GAAP profit figures that surpassed Wall Street expectations, driving a positive market reaction. Management attributed the strong performance to continued expansion of DashPass memberships, enhanced product features, and improvements in order frequency, particularly within new verticals beyond restaurant delivery. CEO Tony Xu emphasized the company’s ongoing focus on product quality and selection, stating, “Our product today is better than our product yesterday, and our product next year will be better than our product this year.”

Is now the time to buy DASH? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From DoorDash’s Q2 Earnings Call

• Shweta R. Khajuria (Wolfe Research) asked about specific drivers of DashPass membership growth and advertising scale. CEO Tony Xu highlighted multi-year investments in product improvements and a disciplined approach to ads, while CFO Ravi Inukonda stressed maintaining best-in-class merchant return and consumer conversion.
• Deepak Mathivanan (Cantor Fitzgerald) probed on the role of AI in user experience and operational efficiency. Xu described rethinking the business model using AI for personalization and automation, while Inukonda noted strong cohort growth in new verticals.
• Ronald Victor Josey (Citi) inquired about DashPass cohort engagement and the anticipated integration of Deliveroo. Inukonda pointed to continued strength in both new and mature cohorts, and Xu reiterated a focus on building the best product experience for any acquisition.
• Michael Paul Morton (MoffettNathanson) questioned operating expense trends and future headcount growth. Inukonda explained disciplined investment in product and engineering, aiming for long-term leverage, and Xu noted that headcount growth is targeted at new problem areas.
• Lee Horowitz (Deutsche Bank) sought updates on retail and drone delivery initiatives. Xu emphasized retail’s early-stage growth and complexity, and highlighted ongoing partnerships and regulatory progress in drone delivery.

Catalysts in Upcoming Quarters

Going forward, the StockStory team will closely watch (1) the pace of adoption and profitability in new verticals like grocery and retail, (2) the integration and financial contribution from recent acquisitions such as SevenRooms and Deliveroo, and (3) progress in automation and AI-driven operational efficiencies. Execution in expanding subscription programs and maintaining high standards for ads monetization will also be key indicators of sustained growth.

DoorDash currently trades at $264.50, up from $258.17 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).

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