DoorDash, Inc. Class A Common Stock (DASH)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 156,000 | -534,000 | -1,399,000 | -463,000 | -458,000 |
| Revenue | US$ in thousands | 10,722,000 | 8,635,000 | 6,583,000 | 4,888,000 | 2,886,000 |
| Pretax margin | 1.45% | -6.18% | -21.25% | -9.47% | -15.87% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $156,000K ÷ $10,722,000K
= 1.45%
Over the period from December 31, 2020, to December 31, 2024, DoorDash, Inc. Class A Common Stock exhibited notable fluctuations in its pretax margin. The company consistently reported negative pretax margins throughout this timeframe, indicating that profitability before taxes was not achieved. Specifically, the pretax margin was -15.87% as of December 31, 2020, suggesting the company incurred significant expenses relative to its revenues during that year. The negative margin narrowed somewhat in 2021 to -9.47%, reflecting an improvement in operational efficiency or cost management.
However, by the end of 2022, the pretax margin worsened to -21.25%, implying increased costs or decreased revenues adversely impacting profitability. This downturn highlights potential challenges in operational scalability, competitive pressures, or expense management during that period.
Progressing into December 31, 2023, the pretax margin improved to -6.18%, demonstrating a substantial reduction in losses before taxes and a positive trend towards operational stabilization. This improvement may suggest successful strategic initiatives, cost reductions, or revenue growth efforts.
Finally, by December 31, 2024, the pretax margin transitioned into positive territory at 1.45%, indicating that the company's operations generated a pre-tax profit, reflecting a significant turnaround in financial performance. This shift to profitability before taxes could be attributed to increased revenues, improved cost control, or a combination of both, positioning DoorDash as a more financially sustainable entity moving forward.
Peer comparison
Dec 31, 2024