5 Insightful Analyst Questions From DoorDash's Q3 Earnings Call

DoorDash’s third quarter results led to a significant market pullback, with management highlighting the company’s ongoing investments in technology and new product initiatives as core drivers of performance. CEO Tony Xu pointed to strong order growth and improving unit economics, which allowed DoorDash to reinvest in its business. However, higher spending on platform development and new verticals, along with incremental costs related to acquisitions, contributed to earnings per share falling short of Wall Street expectations. Management acknowledged these tradeoffs, emphasizing the long-term benefits of reinvestment and the need to maintain a disciplined approach to capital allocation.

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

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 Q3 Earnings Call

• Deepak Mathivanan (Cantor Fitzgerald) asked about the allocation of incremental investments between technology and product expansion. CEO Tony Xu explained most spending targets the new tech platform, designed for simultaneous global rollouts and AI integration, with anticipated cost efficiencies over time.

• Shweta Khajuria (Wolfe Research) inquired about the investment strategy for Deliveroo and the roadmap for automation. Xu stated the priority is to improve Deliveroo’s product experience and unit economics, while commercialization of autonomous delivery remains a multi-year, pragmatic effort.

• Ross Sandler (Barclays) questioned how recent European consolidation affects DoorDash’s regional outlook. Xu described DoorDash’s opportunity to become the leading commerce platform in Europe, leveraging lessons from Wolt to strengthen Deliveroo’s product and scale.

• Michael Morton (MoffettNathanson) asked about the drivers behind the sharp increase in tech platform spending and progress on DashMart Fulfillment Services. CFO Ravi Inukonda clarified that higher costs are tied to deployment readiness and temporary overlap of platforms, while CEO Xu detailed efforts to improve inventory accuracy for retailers.

• Andrew Boone (Citizens) sought clarity on breakeven timelines for new verticals and sources of U.S. user growth. Inukonda reported improving unit economics and active user engagement, with growth supported by product improvements and expanded selection.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be focused on (1) the pace and impact of DoorDash’s global tech platform rollout, (2) progress toward profitability in new verticals and the scaling of DashMart Fulfillment Services, and (3) the integration of Deliveroo and realization of targeted cost synergies. Continued adoption of recent product launches and performance in core U.S. markets will also be important indicators of execution.

DoorDash currently trades at $201.50, down from $237.91 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members).

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