DoorDash heavily narrowed its net loss and hit new quarterly records for key metrics for the first quarter of 2024. But growth of total orders, marketplace gross order value, and revenue—while all still up double digits from the same time a year ago—is slowing from the same breakneck pace it achieved in past quarters.
DoorDash reported revenue of $2.51 billion for the first quarter, up 22% from the same quarter a year ago. Total orders gained 21% to reach 620 million, while marketplace gross order value was up 21% year-over-year to $19.2 billion.
DoorDash is the largest player in the U.S. restaurant delivery space, though it has failed to turn a profit yet. However, the company narrowed its net loss to $25 million, down from $156 million in the fourth quarter of 2023. DoorDash hasn’t provided an outline on when it expects to hit profitability.
“In the vast majority of communities we operate in, our solid execution contributed to greater choice for consumers, higher sales for merchants, increased earnings for Dashers, and improved profitability in our business,” DoorDash wrote in its earnings release.
DoorDash has grown out its international business at a rapid pace as the company has invested aggressively in the space and added new merchants. “We remain pleased with our execution against volume goals in all major areas of our business and, based on third party data, believe we gained category share on a Y/Y and Q/Q basis in our U.S. restaurant marketplace, U.S. new verticals marketplace, and in the vast majority of our international markets,” the company said.
New regulations in Seattle and New York City were also implemented to ensure earnings standards for delivery workers. The measures, which DoorDash and other gig companies fought against, were called out in the company’s report.
DoorDash said that it estimates local merchants will earn at least $40 million less annually from the DoorDash marketplace in Seattle and at least $110 million annually in New York because of the new standards. (Overall, it represents a small portion of the company’s total orders. The company said that it estimated the regulations reduced total orders by less than 1% in the first quarter.)
“This means our platform has become less accessible and less flexible for the people who use it to generate incremental income,” the company said. “This is an unfortunate, though predictable, outcome.”
The company will discuss results in a call with investors Wednesday at 5 p.m. ET.