DA

DoorDash, Inc. stock research

Mar 31, 2023

FY2023 Q1

DoorDash (DASH) Gross Margin — Quarter Ended Mar 31, 2023

Revenue increased relative to both the prior quarter and the same quarter one year earlier, with gross profit also rising in both comparisons. Gross margin improved from the immediately preceding quarter but weakened versus the year-ago period.

Gross margin takeaway

Quarter ended Mar 31, 2023 · FY2023 Q1

Revenue increased relative to both the prior quarter and the same quarter one year earlier, with gross profit also rising in both comparisons. Gross margin improved from the immediately preceding quarter but weakened versus the year-ago period.

  • The gross margin improvement from the prior quarter was accompanied by a revenue increase that outpaced the cost of revenue increase, while the year-over-year margin decline reflects cost of revenue rising at a faster pace than revenue.
  • Compared with the immediately preceding quarter, gross margin improved as revenue grew more than cost of revenue. Versus the same quarter one year earlier, gross margin weakened, with cost of revenue growing faster than revenue.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

43.0%

Gross profit

$876.0M

Revenue

$2.0B

Cost of revenue

$1.2B

Quarter-over-quarter change

n/a

Year-over-year change

-0.7 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$2.0B$876.0M$1.2B43.0%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Previous quarter unavailable

n/a

Year-over-year change

Mar 31, 2022

-0.7 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The gross margin improvement from the prior quarter was accompanied by a revenue increase that outpaced the cost of revenue increase, while the year-over-year margin decline reflects cost of revenue rising at a faster pace than revenue.

Compared with the immediately preceding quarter, gross margin improved as revenue grew more than cost of revenue. Versus the same quarter one year earlier, gross margin weakened, with cost of revenue growing faster than revenue.

Monitor the rate of cost of revenue growth relative to revenue growth in upcoming quarters, as year-over-year margin compression suggests cost increases are outpacing revenue gains.