Tag Archives: independent research on IPOs


DoorDash: Getting Dinner on the Table

DoorDashDoorDash (NYSE: DASH), a food delivery platform and service, was founded in 2013. Today, DoorDash is headquartered in San Francisco, California, where it is led by Tony Xu, who acts as the company’s CEO and Director. Consensus analyst estimates call for DoorDash to produce revenues of $2.9 billion in fiscal 2020, along with a loss per share of $1.08. In fiscal 2021, analysts foresee an improvement, with revenue estimates rising to $3.7 billion and EPS estimates at $0.15.

DoorDash debuted on the New York Stock Exchange on December 9th, 2020, in a 33 million Class A common stock offering, priced at $102. With all shares coming from the company, DoorDash generated close to $3.4 billion from the offering. With a pre-IPO cash balance of $1.6 billion and no debt, DoorDash possessed roughly $5 billion in cash with no debt immediately after the offering. At a recent share price of $180, DoorDash carries a market cap of approximately $57 billion.

DoorDash’s mission is to grow and empower local economies. DoorDash was founded as a merchant-first business, as the platform allows brick-and-mortar companies to thrive in an ever-growing convenience-oriented economy with changing consumer demands. This is achieved through the DoorDash Marketplace, which provides a variety of services, allowing merchants to acquire customers, deliver orders, gain access to insights and analytics, merchandise, process payments, and manage customer support.

The company’s proprietary technology enables it to optimize interactions between merchants, consumers, and delivery drivers, or Dashers, to create a seamless end-to-end experience. Every order on the Marketplace platform is analyzed by DoorDash’s machine learning algorithms to continuously improve the quality and performance of the platform. This allows the company to present personalized content to consumers by accounting for past order preferences, provides data for Dashers to maximize their earnings opportunities, and optimizes the experiences of all users on the Marketplace through increasingly intelligent and efficient logistics.

DoorDash assists merchants by catalyzing incremental sales and leveraging their fixed cost investments while establishing an online presence and broadening their reach. With DoorDash, merchants have the option of fulfilling orders through delivery, facilitated by the platform, or in-person pickup by customers. Additionally, merchants can launch promotions on the Marketplace. Merchants have produced over $19 billion in combined total sales on the Marketplace, and in 2019, experienced a 59 percent year-over-year same store sales increase on the platform. Dashers have garnered more than $7 billion combined through the Marketplace.

In addition to individual, one-off orders, DoorDash offers a membership program called DashPass where customers pay a $9.99 monthly delivery fee for unlimited deliveries from eligible merchants. While currently only available for restaurants, the company anticipates providing customers access to all of their local businesses in the future, allowing consumers to receive benefits while shopping in-store, at-home, or anywhere else.

DoorDash’s Marketplace platform has connected more than 390,000 merchants, over 18 million consumers, and more than one million Dashers throughout the United States, Canada, and Australia. In total, more than 900 million orders have been processed and completed through the platform. DoorDash has partnerships with more than 175 of the 200 largest national restaurant brands, such as McDonald’s, Chick-Fil-A, The Cheesecake Factory, Chipotle, Wingstop, and Wendy’s.

DoorDash is the largest and fastest growing local food delivery logistics firm in the United States, boasting a 50 percent United States category share and a 58 percent category share in suburban markets. Off premises consumption of restaurant meals (i.e., takeout or delivery orders from restaurants) totaled nearly $303 billion in the United States in 2019. Despite this, DoorDash generated a mere $8 billion in total orders in 2019, representing less than three percent of the total market opportunity in America.

Peloton Interactive: Riding High on Consumer Spending

Peloton LogoPeloton Interactive (NASDAQ: PTON), a high-end fitness products company, is a relatively recent addition to our Battle Road IPO Review Consumer sector coverage. Founded in 2012 and based in New York City, Peloton is expected to record revenue of $1.48 billion in its fiscal year ending June 30th 2020, along with a loss per share of $1.29. This compares to revenue of $915 million in fiscal year 2019, during which the company recorded an operating loss of $113 million, excluding depreciation expense.

Peloton announced the pricing of its 40 million Class A share IPO on September 25th. The deal was priced at $29 per share, and was led by a remarkably large number of underwriters—21 in total—reflecting in part the recent IPO drought. Peloton also announced the concurrent sale of 3.5 million additional shares of its Class A common stock in a private placement to entities affiliated with TCV, an existing shareholder. Following the IPO, roughly 45 million Class A and 236 million Class B common shares outstanding for a total of 281 million shares outstanding, with Class B shares holding 99 percent of the voting power. At a recent share price of $28, Peloton Interactive possesses a market cap of roughly $7.9 billion.

Peloton Interactive positions itself as an interactive fitness platform at the “nexus of fitness, technology and media,” which creates, in its own words, “engaging to the point of addictive” programming for customers. PTON is primarily a high-end exercise bike and treadmill company, with approximately 69 percent of sales coming from connected products, with most of the remaining 31 percent from subscriptions associated with its product sales. Over the last five years, the company has sold over 580,000 exercise bike and treadmills, with about 97 percent of the total sold in the U.S. Roughly 50 percent of revenue comes from sales from its website onepeloton.com. Other channels include showrooms. The company claims over 1.4 million member subscribers, who completed over 58 million workouts in fiscal 2019.

To peruse Peloton’s product offerings on its company website is to realize just how strong today’s consumer economy has become. Pricing for Peloton’s exercise bike begins at $2,245, with a one year limited warranty, and pricing for its tread machine begins at $4,245, with a one year limited warranty. In the most recent quarter ended September 30th, Peloton reported revenue of $228 million, a 104 percent increase over the prior year, along with a gross margin of 46 percent, flat with the prior year. The company’s operating loss was $51 million, as compared to an operating loss of $56 million in the prior year. Post-IPO Peloton has a strong balance sheet, with roughly $1.5 billion in cash, or $5.25 in cash per share, and no debt, though we do note that the company is currently not profitable.

Tags: IPO Research, independent research on IPOs, independent stock research; independent research on Peloton Interactive, independent research on Consumer stocks; independent research on Consumer IPOs.