DoorDash, Inc. (NASDAQ:DASH)

The company’s revenue remained constant as the baseline reference at 100% of revenue throughout the periods analyzed.

Cost of Revenue

The cost of revenue, excluding depreciation and amortization, ranged mostly between approximately 44.9% and 55.78% of revenue. Initially, it showed a declining trend from 52.27% in Q1 2021 to a low near 44.9% in Q2 2021, then generally increased, peaking around 55.78% in Q4 2021 and remaining elevated through mid-2022 before declining steadily in the most recent quarters to about 49.21% by Q2 2025. This suggests fluctuations in direct costs with some improvements in cost management toward the end of the period.

Gross Profit

Gross profit margin exhibited an inverse pattern to the cost of revenue, fluctuating between 44.22% and 55.1% of revenue. After peaking above 55% in mid-2021, it declined through 2021 and 2022, bottoming near 44.22% in Q4 2021, then showed gradual recovery to around 50.79% in Q2 2025. This indicates an improvement in profitability on core business activities toward the end of the period.

Operating Expenses

Sales and Marketing

Sales and marketing expenses steadily decreased as a percentage of revenue, from a peak near 34.98% in Q3 2021 to approximately 18.48% in Q2 2025. This continuous reduction indicates enhanced efficiencies or scaling effects in customer acquisition and retention efforts.

Research and Development

Research and development expenses were relatively stable but showed some volatility. Initial growth from 7.61% to over 13.75% in late 2021 and early 2022 was followed by a decline, settling near 10.69% by Q2 2025. This reflects a period of increased innovation investment followed by normalization or optimization in spending.

General and Administrative

General and administrative costs fluctuated between roughly 10.95% and 18.78% of revenue. An initial rise in 2021 was followed by a decline to about 11% late in the period, with a notable spike during mid-2024. The overall trend leans towards cost control and efficiency improvements in administrative functions.

Depreciation and Amortization

These expenses increased through 2022, reaching a high near 6.94% of revenue, before declining modestly to approximately 4.84% by Q2 2025. The earlier increase suggests substantial capital investments or acquisitions, with later decreases potentially reflecting asset maturity or write-downs.

Restructuring Charges

Restructuring charges were mostly absent except for brief periods with minor charges, with a notable charge of -4.62% in Q4 2022, indicating one-time costs possibly related to organizational changes or cost-cutting measures.

Operating Income (Loss)

Operating results varied widely. Losses deepened throughout 2021 and 2022, reaching a low of -20.35% in Q4 2022, followed by a strong improvement trend with positive operating income emerging in late 2024 and sustained through mid-2025, peaking at around 5.11%. This transition reflects effective cost management and margin recovery post restructuring.

Net Interest and Other Income/Expense

Net interest income increased steadily from near zero in early periods to approximately 1.49% of revenue by mid-2025, suggesting growing returns on cash or investments. Interest expense was minor and infrequent. Other income/(expense) showed volatility with significant negative impact in Q4 2022 (-16.78%) likely a one-time event, but otherwise fluctuated near zero with occasional small gains or losses.

Pre-Tax Income and Taxes

Income before taxes followed operating income trends but with more pronounced volatility due to interest and other items. The lowest pre-tax income occurred in Q4 2022 (-36.25%), significantly impacted by other expenses. Tax provisions generally were minor relative to revenue and variable, sometimes positive and sometimes negative, indicating tax benefits or liabilities that fluctuated over time.

Net Income

Net income including redeemable non-controlling interests mirrored operating and pre-tax results. The company experienced substantial losses, deepest in late 2022 (-35.31%), followed by a marked recovery with positive net income from late 2024 onward, reaching approximately 8.65% of revenue in Q2 2025. Net income attributable to common stockholders followed the same pattern with very similar values, indicating minimal non-controlling interest impacts.

In summary, the company faced high costs and operating losses early in the period with significant cost volatility and one-time restructuring and other expenses around late 2022. Since then, there has been a clear improvement in gross margins, a sustained reduction in sales and marketing expenses, stabilization of R&D and administrative expenses, leading to a transition from significant negative operating and net income to positive profitability by late 2024 and continuing upward through mid-2025.