DoorDash, Inc. (DASH) stock skyrocketed today after the food delivery service announced financial results for the quarter ended September 30, 2021.
The company reported revenue growth of 45% year-over-year to $1.3 billion, while total orders grew 47% to 347 million.
Adjusted gross profit increased 42% from the same period last year to $709 million.
Customer Retention
Tony Xu, Co-founder, CEO and Board Chair, stated that a major driver in the company's growth has been its ability to attract and retain customers on a long term basis.
Xu commented, "The consumers we acquired in Q3 demonstrated initial order rates1 that were largely consistent with recent quarters, and well above levels from 2019 and prior."
The figure suggest that the customer the company acquired during the pandemic peak have not left, but have continued to engage with the service.
However, Xu stated that the "vast majority of consumers still view our service as a point solution for restaurant delivery or a luxury service."
To change public perception, and attract more customers, Xu stated that DASH will "continue investing to expand the number of merchants we connect people with, broaden the range of services we offer, improve our quality and ease-of-use, and extend our affordability."
DashPass Growth
A key factor in Doordash's growth has been its DashPass subscription service, that offers unlimited deliveries from thousands of restaurants with $0 delivery fee on orders over $12. The subscription fee is $9.99.
Xu commented, "We have seen the most progress in engagement among DashPass members, who order significantly more than non-DashPass users on average, are ordering from new verticals in expanding numbers, and are increasingly leveraging new features."
Currently DashPass members and orders stand at an all-time high, exiting the quarter with over 9 million members.
