Connect with us

Uncategorized

DoorDash files to go public

Published

on

After filing earlier this year, DoorDash dropped its public S-1 filing this morning, bringing clarity to its numbers and moving it closer to a public debut that should happen before the end of the year.

The company is one of several startups that we expect to see IPOs from before the year ends, despite some recent market chop and election chaos in the United States.

DoorDash is a heavily-backed company, with Crunchbase reporting that the food-delivery giant has accessed around $2.5 billion in capital during its life, most recently in a $400 million round this June. At the time, DoorDash was valued at a towering $16 billion, post-money, giving the company big valuation shoes to fill when it prices its IPO, and begins to trade.

What follows is a brief rundown of its numbers. The TechCrunch crew will be digging through the IPO filing all morning, so expect more coverage on ownership, legal risks, and other details soon. Let’s go!

The numbers

DoorDash has grown incredibly rapidly, scaling its revenues from $291 million in 2018 to $885 million in 2019. And more recently, from $587 million in the first nine months of 2019 to $1.92 billion in the same period of 2020.

That is 226% growth in 2020 thus far, the sort of expansion that explains why DoorDash was able to attract so much capital at such high prices.

How high-quality is DoorDash’s revenue? In the first three quarters of 2019, the company had gross margins of 39.9%, and in the same period of 2020 the figure rose to 53.1%, a huge improvement for the consumer consumable delivery confab.

The result of DoorDash’s epic growth, and gross margin improvement has been radically improving profitability. The company’s operating loss fell from $479 million in the first nine months of 2019 to just $131 million in the same period of 2020. DoorDash’s net losses are slightly worse — $533 million and $149 million over the same timeframes, respectively — but, again, compared to the company’s topline growth and revenue quality improvements, are inconsequential.

DoorDash has around $1.6 billion in cash and equivalents heading into the fourth quarter, meaning that it has ample cash to fund itself, sans an IPO. The company is therefore going out because it thinks the time is ripe.

Driving DoorDash’s epic growth has been a huge boom in the company’s order volumes and gross order volumes, while its gross margins appear driven by an epic gain in the profitability of the company’s core activity. Observe the following dataset:

The 2019 to 2020 change in contribution margin at DoorDash, and its jump into positive-adjusted EBITDA, makes one wonder why Uber is struggling to accomplish the same task with its Uber Eats business. Regardless, the flip into adjusted profitability should be enough to allay Wall Street concerns about DoorDash’s path to eventual GAAP profits.

At that trajectory it can get the job done in a year or so.

And DoorDash’s operations have flipped into the cash-generating territory, with the company reporting operating cash flow of $315 million during the first three quarters of 2020, up from -$308 million in the same period of 2019.

Overall I am impressed at first blush. The company is bigger, growing more quickly, and losing less money than I expected. Throw in cash generation and adjusted EBTIDA positivity and improving gross margins, and DoorDash could be worth a pretty penny. Without recurring revenues akin to a software company, and the possibility of a vaccine slowing is future growth, DoorDash won’t get a SaaS multiple when it prices. But perhaps defending that $16 billion valuation won’t be as hard as we might have guessed before getting our hands on the numbers.

More to come. Stick with TechCrunch.

Continue Reading
Comments

Uncategorized

Qualcomm’s Snapdragon 888 will land on phones in Q1 2021

Published

on

As promised, more info following yesterday’s Snapdragon 888 announcement. First off, as expected, the company’s next flagship SoC will arrive in the first quarter of next year. We’re still waiting on specific models, but as noted yesterday, the San Diego-based chip giant already has a lineup of smartphone makers planning to employ the 765 follow-up, including ASUS, Black Shark, LG, MEIZU, Motorola, Nubia, realme, OnePlus, OPPO, Sharp, vivo, Xiaomi and ZTE.

The focuses are also what you’d expect: 5G, AI, speed, security, imaging and gaming. As Qualcomm announced earlier, the new system sports the third-gen X60 5G modem, which supports both sub-6 and mmWave variations of the wireless technology with speeds up to 7.5 Gbps. Also on board is support for Wi-Fi 6 and Bluetooth 5.2.

The sixth-gen version of the company’s AI Engine brings faster processing speeds at lower power consumption — specifically up to 3x performance per watt, per Qualcomm’s numbers. That’s capable of up to 26 tera operations per second (TOPS). Compare that to the “incredible” 5.5 TOPS the company was talking up on the Snapdragon 765 roughly this time last year. The AI stuff is primarily used to boost camera, gaming, connectivity and voice assistants like Google’s.

On the camera side, the new chip features the improved Spectra 580, sporting the line’s first triple ISP (image signal processor). That’s going to go a ways toward fostering multi-camera setup, with the ability to simultaneously have three cameras at up to 2.7 gigapixels a second. The system also supports capture of three 4K HDR videos at once — overkill, perhaps, but neat. There’s improved low-light support as well, to brighten up dark shots — always a nice thing.

The on-board Adreno 660 GPU can do up to 35% faster graphics. The Kryo 680 — based on the new Arm Cortex-X1 architecture — brings up to a 25% uplift in CPU performance. Game rendering has been improved by up to 30%, and titles will get access to Variable Rate Shading — a first for a Qualcomm chip. As for security, the new chip offers a number of new features aimed at protecting on-device data, including the Qualcomm Secure Processing Unit.

Continue Reading

Uncategorized

Self-driving trucks startup TuSimple raises $350M from U.S. rail, retail and freight giants

Published

on

Self-driving trucks startup TuSimple has closed a $350 million funding round from a diverse consortium of strategic investors that include major U.S. corporations in rail, retail and freight, according to sources familiar with the deal. 

The round, which was oversubscribed, was led by VectoIQ LLC, confirming a report by TechCrunch in September. VectoIQ is the consulting and investment company founded by Steve Girsky, the former GM vice chairman, consultant and investor whose special purpose acquisition company merged with hydrogen electric startup Nikola Corp. this summer. 

The injection of capital stands out not only because of its size, but the array of companies involved. Goodyear, Union Pacific, CN Rail, freight company U.S. Xpress and retailer Kroger all participated in the round, sources familiar with the deal told TechCrunch. Existing investors Volkswagen AG’s heavy-truck business The Traton Group and Navistar also participated. (Last month, Traton, which already held a 16.6% stake in Navistar agreed to acquire its remaining shares.)

TuSimple has raised $648 million since its founding in 2015.

The company declined to comment. 

TuSimple was one of the first autonomous trucking startups to emerge in what has become a small, yet bustling industry that now includes Aurora, Embark, Ike, Kodiak and Waymo. While TuSimple’s founding team and its earliest backers Sina and Composite Capital are from China, a chunk of its operations are in the United States, including its global headquarters in San Diego. TuSimple also operates an engineering center and truck depot in Tucson and more recently set up a facility in Texas to support its autonomous trips —always with a human safety operator behind the wheel. TuSimple also has operations in Beijing and Shanghai. 

As TuSimple has scaled with workforce and testing in the U.S., it has diversified its customer and investor base. The company has attracted a number of investors and partners in recent years, including UPS, Korean Tier 1 supplier Mando Corporation, Traton Group and now U.S. Xpress. 

TuSimple raised $55 million in 2017 with plans to use those funds to scale up testing to two full truck fleets in China and the United States. By 2018, TuSimple began to test on public roads, beginning with a 120-mile highway stretch between Tucson and Phoenix in Arizona and another segment in Shanghai. TuSimple has since expanded operations into Texas. 

Last year, the company’s valuation eked over the $1 billion-mark after raising $95 million in a Series D funding round. It’s unclear what TuSimple’s new post-money valuation is.

Continue Reading

Uncategorized

Jitsu nabs $2M Seed to build open source data integration platform

Published

on

Jitsu, a graduate of the Y Combinator Summer 2020 cohort, is developing an open source data integration platform that helps developers send data to a data warehouse. Today, the startup announced a $2 million seed investment.

Costanoa Ventures led the round with participation from YCombintaor, The House Fund and SignalFire.

In addition to the open source version of the software, the company has developed a hosted version that companies can pay to use, which shares the same name as the company. Peter Wysinski, Jitsu’s co-founder and CEO, says a good way to think about his company is an open source Segment, the customer data integration company that was recently sold to Twilio for $3.2 billion.

But he says, it goes beyond what Segment by allowing you to move all kinds of data whether customer data, connected device data or other types. “If you look at the space in general, companies want more granularity. So let’s say for example, a couple years ago you wanted to sync just your transactions from QuickBooks to your data warehouse, now you want to capture every single sale at the point of sale. What Jitsu lets you do is capture essentially all of those events, all of those streams, and send them to your data warehouse,” Wysinski explained.

Among the data warehouses it currently supports include Amazon Redshift, Google BigQuery, PostGres and Snowflake.

The founders built the open source project called EventNative to help solve problems they themselves were having moving data around at their previous jobs. After putting the open source version on GitHub a few months ago, they quickly attained 1000 stars, proving that they had delivered something that solved a common problem for data teams. They then built the hosted version, Jitsu, which went live a couple of weeks ago.

For now, the company is just the two co-founders, Wysinski and CTO Vladimir Klimontovich, but they intend to do some preliminary hiring over the next year to grow the company, most likely adding engineers. As they begin to build out the startup, Wysinski says that being open source will help drive diversity and inclusion in their hiring.

“The goal is essentially to go after that open source community and hire people from anywhere because engineers aren’t just […] one color or one race, they’re everywhere, and being open source, and especially being in a remote world, makes it so so much simpler [to build a diverse workforce], and a lot of companies I feel are going down that road,” he said.

He says along that line, the plan is to be a fully remote company, even after the pandemic ends, as they hire from anywhere. The goal is to have quarterly offsite meetings to check in with employees, but do the majority of the work remotely.

Continue Reading

Trending