DoorDash, Inc. (DASH): Profits, Cash Flow and a $3.9B Bet on Europe

Immediate development: profits, free cash flow and a transformational purchase#

DoorDash’s two most consequential recent moves arrived together: the company closed FY2024 with net income of $123.0 million and free cash flow of $1.80 billion, while announcing a proposed acquisition of Deliveroo for £2.9 billion ($3.9 billion). The combination is striking because DoorDash produced a meaningful cash‑flow and profitability inflection in FY2024 after several years of losses, and then elected to deploy a sizeable amount of capital to accelerate international scale. The FY2024 results show a +24.22% year‑over‑year revenue increase to $10.72 billion, and operating leverage that trimmed operating losses to -0.35% of revenue. At the same time, the Deliveroo purchase is an accelerant: it materially expands DoorDash’s European footprint and converts cash generation into inorganic growth capacity rather than returning capital to shareholders.DoorDash FY2024 filings | Deliveroo transaction briefing.

Financial performance: FY2024 by the numbers#

DoorDash’s FY2024 income statement shows a business that scaled topline while moving to a positive bottom line. Revenue rose to $10.72B from $8.63B in FY2023 for a +24.22% YoY increase, driven by higher gross order value across its marketplace and expansion of higher‑margin services. Gross profit increased to $5.18B, producing a gross margin of 48.32%, a modest expansion versus prior years that reflects a favorable mix and scale benefits. Operating losses compressed sharply to -$38 million, producing an operating margin of -0.35%, and EBITDA reached $523 million (EBITDA margin 4.88%). The company reported net income of $123.0 million, equal to a net margin of 1.15%.

These income statement moves are matched by cash‑flow strength. Net cash provided by operating activities rose to $2.13B (+27.55% YoY versus $1.67B in FY2023), and the reported free cash flow for FY2024 was $1.80B, up +33.33% from FY2023. The swing to positive GAAP net income alongside robust free cash flow is the clearest operational inflection DoorDash has shown to date and is the financial backdrop for the company’s recent M&A and capital choices.DoorDash FY2024 filings

Table: Income Statement Highlights (selected years, USD)

All figures above from DoorDash FY2024 filings unless otherwise noted. Calculations are Monexa AI derived from reported line items.

Margin decomposition and quality of earnings#

DoorDash’s margin picture reveals the sources of the FY2024 improvement. The gross margin of 48.32% reflects the platform’s revenue mix—commissions and marketplace fees that scale faster than cost‑of‑revenue. Yet the operating margin remains slightly negative at -0.35%, indicating that SG&A and R&D investments still absorb most of the gross profit gains. Research & development and SG&A combined were large line items in FY2024—R&D of $1.17B and SG&A of $3.49B—reflecting investments in product, logistics, and international expansion initiatives that management has signaled are strategic priorities.

On the cash side, quality of earnings looks stronger than the GAAP line items alone suggest. Operating cash flow of $2.13B and free cash flow of $1.80B show the business is generating operational liquidity far ahead of reported net income. The divergence between cash flow and modest net income is driven by non‑cash items (notably depreciation & amortization of $561MM) and working capital dynamics (change in working capital of $252MM in FY2024). The sustained positive free cash flow margin (~16.79% of revenue) is a critical enabler for capital allocation options such as M&A and share repurchases while retaining balance sheet flexibility.DoorDash FY2024 filings

Balance sheet, liquidity and capital allocation choices#

DoorDash closed FY2024 with cash and cash equivalents of $4.02B and cash and short‑term investments of $5.34B, against total debt of $536M (long‑term debt $468M). Using a simple definition (total debt less cash & short‑term investments), DoorDash’s net cash position is approximately $-4.80 billion (i.e., net cash of $4.80B) at year‑end. Year‑end current assets were $7.39B against current liabilities of $4.44B, producing a year‑end current ratio of 1.66x using those line items. These year‑end balance sheet computations differ from some trailing‑12‑month (TTM) metrics in third‑party summaries; when such discrepancies appear, we prioritize the company’s FY2024 reported line items for point estimates and show the divergence explicitly below.

That strong net cash position enabled the company to repurchase common stock in FY2024 (common stock repurchased -$224MM) while still ending the year with meaningful liquidity. DoorDash’s capital allocation pivot to acquire Deliveroo for £2.9B ($3.9B) means a meaningful portion of that net cash will be redeployed into inorganic expansion rather than held or returned to shareholders. The FY2024 cash generation creates the capacity for that deal, but it also shifts the firm’s risk profile toward integration and regulatory execution.DoorDash FY2024 filings | Deliveroo transaction briefing

Table: Key balance sheet & liquidity metrics (year‑end)

Note: The dataset contains a reported net debt of -$3.48B and a TTM current ratio of 2.07x; Monexa AI recalculated net cash and current ratio from the FY2024 year‑end line items and reports the figures shown in the right column. Differences likely reflect timing, TTM averages, or alternate definitions (for example, inclusion/exclusion of certain marketable securities). We prioritize the company’s FY2024 balance sheet values for the year‑end snapshots above.DoorDash FY2024 filings

Valuation context and selected market metrics#

Market quotes at the time of this writing show DoorDash trading near $257.43, representing a market capitalization of approximately $109.97 billion. Using the FY2024 revenue of $10.72B, that implies a price‑to‑sales multiple near 10.26x using the provided market cap and FY2024 revenue (versus some published TTM price‑to‑sales metrics nearer to 9.25x, reflecting timing differences in quoted market cap or trailing revenue definitions). On a trailing GAAP EPS basis, the company’s reported EPS and market price produce a P/E near 141.45x (price / EPS 257.43 / 1.82), consistent with the snapshot equity multiples reported in the market data.NASDAQ market data | DoorDash FY2024 filings

Enterprise value computations are sensitive to the precise cash and debt definitions used. Taking the publicly stated market cap of $109.97B, adding total debt $0.536B and subtracting cash & short‑term investments $5.34B yields an enterprise value around $105.17B. Dividing that EV by FY2024 EBITDA ($0.523B) gives an EV/EBITDA of roughly ~201x on a strict FY2024 basis. Third‑party TTM EV/EBITDA figures (for example, ~96.48x) differ materially because they use alternative trailing EBITDA definitions, seasonally adjusted figures, or different market cap timing. Investors should therefore treat published multiples as sensitive to the chosen time window and definition; the core signal is that valuations remain rich relative to current operating profitability, reflecting high expected growth and margin expansion baked into equity prices.

Strategic rationale behind the Deliveroo purchase and ROI considerations#

DoorDash’s proposed acquisition of Deliveroo for £2.9B ($3.9B) is a deliberate capital allocation choice to accelerate international scale, densify urban logistics in Europe, and expand the company’s total addressable market for higher‑margin local commerce services. Deliveroo brings urban density and brand strength across several European markets that DoorDash has under‑penetrated. By folding Deliveroo’s merchant relationships, rider networks and local product capabilities into DoorDash’s technology stack, management aims to generate both topline synergies (cross‑sell and higher gross order value) and cost synergies (consolidated logistics, routing and back‑office functions).

Quantitatively, the deal price is material relative to DoorDash’s balance sheet cash: FY2024 free cash flow of $1.80B would finance a meaningful portion of the purchase, but the deal still represents a multi‑year allocation of cash flow to inorganic growth rather than buybacks or dividends. The expected ROI depends heavily on integration success: the acquisition must expand GOV meaningfully and yield incremental margin improvement to justify redeploying free cash flow. Historical precedent in delivery economics demonstrates that scale and density frequently lead to better unit economics, but only when integration preserves local execution and controls labor and regulatory costs.

Competitive dynamics and how the deal reshapes Europe#

DoorDash’s move into Deliveroo’s footprint materially changes the competitive map in Europe. Deliveroo’s strength in dense urban markets—particularly the UK—gives DoorDash immediate order density and merchant relationships at a scale that matters for routing efficiency and unit economics. That scale can be a durable advantage because denser order flows reduce per‑order delivery costs and improve delivery speed, reinforcing a positive feedback loop between consumer choice and merchant participation. However, competitors like Uber Eats and regional incumbents such as Just Eat Takeaway retain scale and local partnerships that can blunt market share gains. The industry’s history of thin margins and regulatory attention to gig worker models means that scale alone does not guarantee durable high margins: execution on cost, merchant economics and regulatory compliance will determine outcomes.

Operational and regulatory risks to integration#

Merging Deliveroo’s operations into DoorDash poses a lineup of execution and regulatory risks. European markets have materially different labor rules and emerging gig‑worker frameworks that could increase operating costs or require different contractual models. Data privacy regimes (e.g., GDPR) and local consumer protections will require careful harmonization. Cultural and product differences across markets increase integration complexity: preserving Deliveroo’s local brand strengths while consolidating technology and back‑office functions is a management balancing act. Historically, platform M&A in delivery has seen value erode when integrations are rushed or when local knowledge and merchant relationships are replaced by centralized playbooks. DoorDash must manage a phased integration and maintain local operating teams to avoid damaging unit economics and customer retention.Deliveroo transaction briefing

Historical execution and credibility of management#

DoorDash’s FY2021–FY2024 trend shows management’s ability to scale revenue rapidly—three‑year revenue CAGR near ~29.93% (reported in the dataset)—while steadily improving operating leverage. The company moved from large GAAP losses in FY2022 to positive net income and strong free cash flow in FY2024, which is a tangible execution accomplishment. Management’s prior capital allocation included significant share repurchases (e.g., -$750MM repurchased in FY2023) and continued investments in product and logistics. The Deliveroo transaction is consistent with a management preference for growth through scale, but it raises questions about the pace of integration and whether returning capital to shareholders may take a back seat to M&A-fueled expansion.

What This Means For Investors#

Investors face a clear tradeoff. On one hand, DoorDash has demonstrated a credible operational inflection: positive GAAP net income ($123M) and $1.8B free cash flow in FY2024 create financial flexibility and validate improvements in unit economics. That improvement underpins management’s decision to accelerate international expansion via Deliveroo, which could expand long‑term revenue pools and improve logistics density in higher‑value urban markets.

On the other hand, the Deliveroo acquisition concentrates execution risk. The deal requires successful cross‑border integration, navigation of varied labor and regulatory regimes, and retention of local merchant and rider trust. Valuation metrics remain rich versus current profitability (price‑to‑sales near 10.26x on FY2024 revenue and P/E near 141x on trailing EPS), implying the market expects sustained growth and margin expansion. Key near‑term monitoring items for investors should include integration milestones, GOV and unit economics in newly combined markets, and whether cash generation continues at FY2024 levels after acquisition costs and integration spending.DoorDash FY2024 filings

Key takeaways#

DoorDash’s FY2024 results and Deliveroo purchase create a single investment narrative: the company has moved from scale‑at‑all‑costs to a position where cash flow enables aggressive, inorganic expansion. The core strengths are substantial: robust free cash flow, a positive GAAP bottom line in FY2024, and a balance sheet with low net leverage. The core risks are also evident: high valuation relative to trailing profitability and substantial integration/regulatory execution risk in Europe. How DoorDash executes on integrating Deliveroo and converting scale into durable margin improvement will determine whether the acquisition is value‑creating or a costly strategic detour.

Conclusion#

DoorDash enters 2025 as a different company than it was three years ago: the FY2024 financials show commercial scale, positive net income, and very strong free cash flow, while the Deliveroo acquisition signals a strategic move to convert that cash generation into accelerated international scale. The next 12–24 months will be decisive. If DoorDash preserves Deliveroo’s local strengths, captures the projected logistics synergies, and sustains free cash flow generation through integration, the company can credibly build a larger, denser global marketplace. If integration stalls, regulatory costs rise materially, or margins prove harder to improve than current multiples assume, the deal will expose the company to greater execution risk. For market participants, the story is now less about “can DoorDash scale?” and more about “can DoorDash integrate and monetize that scale?”

Sources

DoorDash FY2024 filings (income statement, balance sheet, cash flow) — DoorDash investor relations SEC filings page: https://investors.doordash.com/financials/sec-filings/default.aspx

Deliveroo transaction briefing and strategic context — Vertex AI research briefing: https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQEFUAE_NwfKzn-b92rnJPZsle3mNCquTT_Ue44_NjFpRVKmBaiHBLDcwPUsnQOGbztjvWNGAGgznH3tOk0G2KtW_913EfClerf2PauWVXC08MhYyQNHl6BSyVQ8xbe5U0h5AoSgbdtHpbJgj4FZSU2Y2icv6B5WRLV4nUCgB8C0ysqmL5RnFc6EELqy4mJO_lz71gXH2kDFFjk=

Market quote and public market metrics — NASDAQ: https://www.nasdaq.com/market-activity/stocks/dash

(When dataset TTM metrics and published third‑party multiples diverge from Monexa AI calculations using FY2024 year‑end figures, the article calls out those discrepancies and prioritizes company reported FY2024 line items for the point estimates above.)