DoorDash Inc at JPMorgan Global Technology, Media and Communications Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jack Atherton - JPMorgan - Analyst : So kicking off with background, big picture. As I said, DoorDash's mission is to grow and empower local economies. You started with restaurants and have now moved to grocery, convenience, retail. As we look 5 to 10 years down the line, how do you think about incremental opportunities within these categories?

Question: Jack Atherton - JPMorgan - Analyst : Great. Obligatory macro question. So you guys have continued to see healthy consumer demand despite everything that's going on around us. How do you think about the resilience of restaurants and other verticals?

Question: Jack Atherton - JPMorgan - Analyst : And hypothetically, if you were to see some impact from the macro, can you talk a bit about how that would change your approach to running the company and potentially other areas of cost that you can leverage to ease through that?

Question: Jack Atherton - JPMorgan - Analyst : Great. So delving into the different business lines, you've called out five key focus areas, US restaurants, US new verticals, international commerce, and ads. So starting with US restaurants, food delivery is now still high-single-digit or single-digit penetration of restaurants. What do you think is going to take to drive that penetration higher from here?

Question: Jack Atherton - JPMorgan - Analyst : Okay. And thinking about that growth algorithm, how do you think about MAUs versus order frequency?

Question: Jack Atherton - JPMorgan - Analyst : Great. And net revenue margin take rate, it's a little bit lower in Q1. It was a sticking point, it felt like, on the earnings call. Can you just talk a little bit about the drivers that gives you confidence that it will step back up into Q2 and then accelerate into the back half?

Question: Jack Atherton - JPMorgan - Analyst : Great. So moving to grocery and new verticals, you said on the Q1 call that you expect to be the order volume share leader over the course of this year. So can you talk about what's driving those share gains? What gives you confidence? And then maybe just dig into the distinction between orders versus dollar volume?

Question: Jack Atherton - JPMorgan - Analyst : Great. And I want to dig into the customer portion and then the merchant portion in a bit more detail. So starting with customers, you're adding one of every two new customers to the category. Is that coming from cross-sell, DashPass, or is it new customers to the overall platform?

Question: Jack Atherton - JPMorgan - Analyst : Yes.

Question: Jack Atherton - JPMorgan - Analyst : And then taking the merchant side, you mentioned that the majority of the top 20 grocers are with you at the moment. So can you talk a little bit about how those conversations have evolved and how it's changed over time? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 9:10PM, DASH.OQ - DoorDash Inc at JPMorgan Global Technology, Media and Communications Conference

Question: Jack Atherton - JPMorgan - Analyst : Great. Shifting to international. Can you talk about how you think about your current level of scale? You recently announced the Deliveroo acquisition, and where you think you need to get to over time?

Question: Jack Atherton - JPMorgan - Analyst : And then thinking about structural differences, US versus international. We touched on this briefly off stage, but I've spent some of my career looking at the European players. One of the things that surprised me, US versus Europe, is just the inherent cyclicality of Europe. So maybe if you can touch on what you think about that cyclicality and any other structural differences you'd call out. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 9:10PM, DASH.OQ - DoorDash Inc at JPMorgan Global Technology, Media and Communications Conference

Question: Jack Atherton - JPMorgan - Analyst : And then thinking about new verticals in international markets, I can definitely see a world in which alcohol would do quite well in the UK.

Question: Jack Atherton - JPMorgan - Analyst : But how do you think about those adjacencies and the expansion there?

Question: Jack Atherton - JPMorgan - Analyst : Great. Shifting to commerce. So you've ramped the commerce platform over the past year. You just announced the acquisition of SevenRooms. Can you talk a little bit about the broader strategy, merchant enablement and the rationale for this deal and how you expect to see that monetize over time? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 9:10PM, DASH.OQ - DoorDash Inc at JPMorgan Global Technology, Media and Communications Conference

Question: Jack Atherton - JPMorgan - Analyst : Okay, makes sense. So advertising, some stats from Q4, so more than 1,000 SMB restaurants, 83 of the top 100 restaurants in the US and 21 of the top 25 CPG marketers in the US all advertised on Dash Marketplace. So thinking about those buckets, how do you think about the biggest opportunity? And where are you pushing hardest in advertising at the moment?

Question: Jack Atherton - JPMorgan - Analyst : Great. And thinking about long-term ad penetration, is there anything structurally different for you versus your peers? And where do you think that can go over time?

Question: Jack Atherton - JPMorgan - Analyst : Just in terms of where the advertising penetration is. Do you think about it in terms of GMV, gross bookings? It's been a metric for some of the food delivery space. Is there anything structurally different? Maybe we think about different verticals, restaurants versus --

Question: Jack Atherton - JPMorgan - Analyst : Great. Thinking about financials, capital allocation. So gross margin, you've seen a little bit of a tailwind from insurance over the past few quarters. How are you thinking about that going forward?

Question: Jack Atherton - JPMorgan - Analyst : Okay. And then capital allocation, you've just allocated a significant portion to M&A. How should you think about the buyback and the free cash flow generation from here? And maybe on that point, if you can talk a little bit about cash balance and minimum levels you might like to maintain.

Question: Jack Atherton - JPMorgan - Analyst : And given that we've spoken about the five different priorities, key focus areas, how are you thinking about different areas that are most exciting at the moment from a capital allocation standpoint? Is there anything that really stands out to you?

Question: Jack Atherton - JPMorgan - Analyst : And maybe the point you mentioned on DashPass, is there anything different there that is different that you've seen in international markets so far? How are some of the learnings that you picked up in the US, say, how can you take that into UK, broader Europe?

Question: Jack Atherton - JPMorgan - Analyst : Great. It's a tech conference so we've not spoken about AI yet.

Question: Jack Atherton - JPMorgan - Analyst : Well, we'll touch both of those. So AI, how are you guys leveraging it internally? There have been a few examples from presentations I've sat in today where companies have spoken about driving efficiency improvements across the internal product. We have Lori Beer speak at the start of the day and talking about 20%, 30% efficiency gains that our own developers at JPMorgan are starting to drive. How are you guys thinking about that?

Question: Jack Atherton - JPMorgan - Analyst : Okay, great. Autonomous, it's obviously touching more of the ride-hailing market at the moment than it is restaurant. But you guys have touched on some of the investments you're making on a number of earnings calls. Maybe you can dig into that a little bit and how you're thinking about the evolution of that tech.

Question: Jack Atherton - JPMorgan - Analyst : And regulation, it's a moving target in lots of different jurisdictions, both in the US and internationally. Is there anything that stands out at the moment that we should be talking about?

Question: Jack Atherton - JPMorgan - Analyst : Great. And we've got about a minute left. But as you're thinking out over the course of the balance of this year, the next few years, is there anything that is particularly exciting that you're focused on at the moment?

Question: Jack Atherton - JPMorgan - Analyst : It's a great place to leave it. Ravi, thank you very much.