Summary List Placement
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