DoorDash, Inc. (NASDAQ: DASH) reported strong results for the first quarter of 2025, highlighting its ongoing success in the food delivery industry and plans for global growth. Despite a drop in share price after the announcement, the company’s performance and strategy suggest an important time for the platform and its investors.
In Q1 2025, DoorDash saw 732 million total orders, an 18% increase from last year. The marketplace gross order value (GOV) rose 20% to $23.1 billion, and revenue grew by 21% to $3.03 billion.
The company also made a GAAP net income of $193 million, a big improvement from last year’s loss, and achieved an adjusted EBITDA of $590 million, showing better operational efficiency.
However, the good financial results led to mixed reactions in the market. DoorDash shares dropped 7.44% to $190.11 because revenue was slightly below analyst expectations of $3.10 billion. The earnings per share (EPS) was $0.44, which was above expected results, indicating better profitability even with the lower revenue.
An important highlight in DoorDash’s Q1 update is its bold plans for global expansion. The company announced two major acquisitions worth over $5 billion. DoorDash will acquire UK-based Deliveroo for about $3.9 billion, allowing it to reach more than 40 countries and expand its international operations.
Additionally, DoorDash will purchase SevenRooms, a hospitality technology company, for $1.2 billion. This will enhance its platform with better in-store and customer relationship tools. Both deals are expected to close in the second half of 2025, pending regulatory approvals.
CFO Ravi Inukonda pointed out that these acquisitions will help DoorDash use its strong product experience in more countries, strengthening its position in the global delivery market. The merger with Deliveroo will create a platform with a gross order value of around $90 billion and 50 million monthly active users worldwide.
DoorDash’s expansion occurs during a time of consolidation in the delivery sector, as companies aim for scale and efficiency after the pandemic. These acquisitions should open new growth opportunities for DoorDash, especially in Europe and the Middle East, and provide merchants with innovative tools for in-store and delivery sales.
Looking ahead, DoorDash plans to expand its product offerings, grow its grocery business, and invest in autonomous delivery technologies. The company expects continued growth in adjusted EBITDA and marketplace GOV, but it also recognizes potential challenges with consumer demand and international markets.
With a strong balance sheet, growing profits, and a clear vision for global expansion, DoorDash is setting itself up for continued leadership in local commerce and delivery. Investors should keep an eye on the company’s progress with these strategic plans as it moves into the next growth phase.