Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| We have driven unit economic improvements across all major lines of business |
| International volume continues to be very strong, and we're also seeing unit economic improvement |
| All of that is driving the improvements you're seeing in the unit economic improvement across both restaurants and honestly, across all parts of the new verticals portfolio |
| And so for us, it's always making sure that we can achieve on those two dimensions where we have the best-in-class returns for advertisers, which we believe we have as well as the smallest or ideally 0 degradation in the consumer experience, which I'm really proud that the team has accomplished |
| And for us, again, I think the key operating tenet here is that healthy ads business, we believe, in which it delivers best-in-class industry returns for advertisers as well as -- continues to allow us to have the best consumer experience is one in which we have to have a healthy and growing marketplace |
| That business has continued to grow as well as improve in overall unit economics |
| I think we've done a nice job in our first decade of helping the restaurant category get there |
| What you've done -- we've done in the last year or so is we've continued to drive improvements in the product, whether it's on the dasher side or the consumer side that ultimately improves retention |
| I mean, DashPass had a great year |
| We are fortunate that we have the largest local commerce space of customers in which we can offer these benefits |
| And look, I think it's also been very healthy for company culture |
| We've driven consistently strong growth every single quarter |
| I'm pleased with the fact that we've been relatively flat on share count over the last six quarters, even though revenue has grown considerably over the same time period |
| We're seeing great signals across growth in volume |
| Our goal is to continue to improve, a, both the volume in that business as well as continuing to drive unit economic improvement where we've seen material improvement compared to last year |
| And I think the good news here is that they're doing it in partnership with industry and we expect a very productive outcome for everyone |
| If you combine that with the overall platform density that we have, whether it's quality where we're able to accrue benefits across the platform on improvements in credits and refunds or the dasher side efficiency |
| When you look at the performance of the business, I mean, we're really pleased |
| Our goal is as long as we continue to make the product better, I'm very confident that we're going to be able to drive strong growth across restaurants, new verticals as well as international |
| And to the second point around EBITDA, again, look, Nikhil, I mean, we've been very pleased with the performance of the business |
| When you think about the growth of that program going forward, this is a great customer retention, customer engagement tool |
| What you saw in '23 is a few things, right? We have generated volume improvements through the course of the year |
| What we're seeing in the business across both new verticals as well as international is volume is growing very nicely |
| Again, you should expect us to see drive improvements across the P&L, which will ultimately drive both revenue as well as gross margin, which will also flow through from a contribution and EBITDA margin perspective in the second half of the year compared to the first half of the year |
| Today, our focus continues to be driving same-store sales growth by better merchandising, continue to improve the overall product market fit |
| And to your specific question on the contribution margin, if I look at the basket of our overall international business, there are several countries where the core restaurant business is actually contribution margin positive and still a lot of runway for both growth as well as improvement in the margin structure |
| I mean the investments are, we are seeing strength in restaurants, we're seeing strength in new verticals, we're seeing strengthening on our national business |
| We're going to continue to invest behind that, because that's a driver for long-term free cash flow generation in our business, and both of those I'm very confident are going to contribute to the overall profitability of the entire business for us |
| You put both of those together, that strong signal for us both from a product market fit as well as a profitability perspective |
| But just to pull back a minute, right, I'm very pleased with the full year guide for EBITDA because, a, we are driving margin improvement; and b, we are driving overall profitability improvement quite considerably |
| Statement |
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| And I think has had some adverse impacts against its wishes, which is whenever you see regulation enter the way it does in a place like New York City, what you see is cost rise for the overall system |
| I mean, if you just pan out and look at the industry, I mean, digital sales or e-commerce penetration of grocery is still amongst the lowest, if not the lowest across all categories of e-commerce |
| There are lower sales for local businesses, and there are fewer work opportunities for Dashers |
| And from an overall share count perspective, you can see the RSU issuance that we've given, we expect the overall RSUs to come down because it's actually -- SBC is a lagging indicator in some ways |
| And I think that's why you see that those churn numbers are low and actually, frankly, they continue to get lower |
| First, I want to ask about the partner commission rate, which you mentioned is down year-over-year |
| I mean I think the hardest challenge that every grocer faces, whether it's physically or digitally in terms of sales is knowing how much inventory they have on the shelves |
| Look, I mean, I realize there's a question if these businesses are going to be profitable for us |
| So first off, on the GOV guidance, it looks like you're calling for a few points of deceleration, Q4 into Q1 and then for the year more broadly |
| I mean, I would say, across the board, the penetration levels in terms of our coverage of consumers as well as the merchants that we have remaining to serve is still quite low, certainly lower than where we are in the U.S., but even lower, I would say, to where they can be given the runway that we see |
| I mean if you look at one of the challenges that grocers have, whether it's through their physical stores or their online channels, it's not knowing how much inventory that they actually carry |
| Similarly, on the order frequency side, I mean, the blended order frequency is still very low compared to the number of usable movements we have, especially if you think about all the categories that we are adding in the business |
| On 4Q EBITDA, I know you don't always aim to beat the high end of the guidance consistently |
| So is this something you can call out, Ravi, on maybe specific investments that you might be leaning harder into in the first half |
| I'm also not sure |
| I do expect that to ramp down as we ramp up efficiency as well as we take other actions in the marketplace |
| It seems like it might have slowed down just a tad in the fourth quarter and then looking at the forward guide |
| There's other barriers around affordability |
| And I think there's many reasons |
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