DoorDash, Inc. (NASDAQ:DASH) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. DoorDash, Inc., together with its subsidiaries, operates a commerce platform that connects merchants, consumers, and independent contractors in the United States and internationally. The US$53b market-cap company announced a latest loss of US$558m on 31 December 2023 for its most recent financial year result. The most pressing concern for investors is DoorDash's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for DoorDash

According to the 37 industry analysts covering DoorDash, the consensus is that breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of US$92m in 2024. The company is therefore projected to breakeven around a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 53% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving DoorDash's growth isn’t the focus of this broad overview, but, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. DoorDash currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

This article is not intended to be a comprehensive analysis on DoorDash, so if you are interested in understanding the company at a deeper level, take a look at DoorDash's company page on Simply Wall St. We've also compiled a list of pertinent aspects you should look at:

1. Valuation: What is DoorDash worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether DoorDash is currently mispriced by the market.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on DoorDash’s board and the CEO’s background.

3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.