Stock Analysis on Net

DoorDash, Inc. (NASDAQ:DASH)

$24.99

Operating Profit Margin
since 2020

Microsoft Excel

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Calculation

DoorDash, Inc., operating profit margin, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 US$ in millions


The operating profit margin exhibited significant fluctuation between 2020 and 2024. Initially negative, the margin demonstrated improvement before worsening again, ultimately trending towards breakeven by the end of the analyzed period.

Operating Profit Margin Trend
In 2020, the operating profit margin was -15.11%. This indicates a substantial operational loss relative to revenue. A moderate improvement was observed in 2021, with the margin increasing to -9.25%, suggesting some gains in operational efficiency or cost control. However, the margin deteriorated considerably in 2022, reaching -17.07%, representing the largest operational loss during the period. A positive shift occurred in 2023, with the margin improving to -6.71%, indicating a reduction in operational losses. This positive trend continued into 2024, with the margin reaching -0.35%, approaching breakeven.
Relationship to Revenue
Revenue consistently increased throughout the period, moving from US$2,886 million in 2020 to US$10,722 million in 2024. Despite this revenue growth, the company experienced operational losses in each year. The improvement in the operating profit margin in 2023 and 2024 occurred concurrently with continued revenue expansion, suggesting that revenue growth alone was not sufficient to achieve profitability, but that operational improvements were contributing to a narrowing of the loss.
Loss from Operations
The absolute loss from operations decreased from US$436 million in 2020 to US$38 million in 2024. This decline in the magnitude of the loss aligns with the improving operating profit margin. The largest loss from operations occurred in 2022 at US$1,124 million, coinciding with the most negative operating profit margin for the period.

The trend suggests a potential path towards operational profitability, although continued monitoring is necessary to confirm sustained improvement. The company’s ability to translate revenue growth into positive operating profits will be a key indicator of future financial performance.


Comparison to Competitors

DoorDash, Inc., operating profit margin, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).