Tony Xu, co-founder and CEO of DoorDash speaks at the WSJTECH live conference in Laguna Beach, California, U.S. October 22, 2019.

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DoorDash just filed to go public on Friday, saying in its IPO filing that its business has exploded while its losses shrunk in 2020.

The delivery company lost $149 million on revenue of $1.9 billion in the first nine months of this year, compared with a $667 million loss on $587 million in revenue for the full prior year. A surge in food-delivery orders also led DoorDash to post a $23 million profit in the second quarter of 2020. 

DoorDash’s sales and marketing expenses also declined as a percentage of its revenue.

 

While the company increased sales and marketing spending 37% to $610 million in the first nine months of 2020 versus the year-ago period, sales and marketing expenses declined to 32% from 76% in the same period.

 

Other companies that recently IPOed increased ad sales as a share of revenue ahead of going public as they ramped up marketing spend. Peloton, for example, spent $324 million on sales and marketing in fiscal 2019, up from $151.4 in 2018, accounting for 35.4% of revenue, up from 34.8% the year before. 

DoorDash said in its IPO filing that it spends most of its marketing spend on attracting new consumers and that existing …read more


Source:: Businessinsider – Tech

      

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