On Friday, Food delivery platform DoorDash has filed for its much awaited IPO with the Securities and Exchange Commission, and plans to take the company public early next month.
The company’s shares will be listed as DASH on the NYSE. It will offer three classes of stock with different voting shares; Class A equals one vote per share, and Class B gives 20 votes per share. Owners of Class C shares will not have voting rights.
DoorDash CEO and co-founder Tony Xu said: “Helping brick-and-mortar businesses compete, succeed, and flourish in these rapidly changing times is the core problem we are trying to solve. DoorDash exists today to empower those like my Mom who came here with a dream to make it on their own. Fighting for the underdog is part of who I am and what we stand for as a company.”
Under factors affecting our performance, the company says its rapid growth strained its IT and accounting systems, processes, and personnel, and an independent auditor found material weakness in our internal control over financial reporting.
The company also noted we have a history of net losses, we anticipate increasing expenses in the future, and we may not be able to maintain or increase profitability in the future.
DoorDash had a net loss of $149 million over the nine months that ended September 30th, compared to a net loss of $533 million for the same period in 2019. During the first nine months of 2020, the company reported $1.9 billion in revenue, up from $587 million a year earlier. The company has more than 18 million customers. more than 390,000 merchants, and about 1 million delivery workers.
For the quarter that ended June 30th, however, the company had a profit of $23 million on revenue of $675 million. It swung back to a net loss of $43 million in the most recent quarter, even though its revenue rose to $879 million. Its valuation has gone from $1.4 billion in 2018 to $16 billion earlier this year.
