Having submitted initial paperwork previously this year, DoorDash has now released its complete S-1 filing, providing a detailed look at its financials and progressing toward an anticipated public offering expected to occur before the close of the year.

The organization is among a number of emerging companies projected to launch initial public offerings prior to the year’s conclusion, even with recent market volatility and the ongoing U.S. election period.

DoorDash has received substantial investment, with Crunchbase data indicating the food delivery service has secured approximately $2.5 billion in funding throughout its history, including a $400 million investment made in June. This earlier funding round established a post-money valuation of $16 billion for DoorDash, creating significant expectations for its IPO pricing and subsequent trading performance.

The following is a concise overview of its key figures. The TechCrunch team is currently analyzing the IPO filing in detail, and further reporting on aspects such as ownership structure, potential legal concerns, and other relevant information will be available shortly. Let's begin!

The numbers

DoorDash experienced substantial growth, increasing its revenue from $291 million in 2018 to $885 million in 2019. This upward trend continued, with revenue climbing from $587 million in the first nine months of 2019 to $1.92 billion during the same timeframe in 2020.

This represents a 226% increase in growth for 2020 to date, a rate of expansion that explains the significant capital DoorDash was able to secure at a premium valuation.

Regarding the quality of DoorDash’s revenue, the company reported gross margins of 39.9% for the first three quarters of 2019. This figure improved considerably to 53.1% over the same period in 2020, marking a substantial gain for the consumer consumable delivery service.

As a consequence of this impressive growth and improvement in gross margins, DoorDash’s profitability has seen significant gains. The company’s operating loss decreased from $479 million in the first nine months of 2019 to just $131 million in the corresponding period of 2020. While net losses were slightly higher—$533 million and $149 million respectively—they are relatively minor when considered alongside the company’s overall revenue growth and enhanced revenue quality.

DoorDash held approximately $1.6 billion in cash and equivalents as it entered the fourth quarter, indicating a strong financial position and sufficient funds to operate without needing to pursue an IPO. The company is proceeding with an IPO because it believes current market conditions are favorable.

The remarkable growth of DoorDash is attributable to a significant increase in both order volumes and gross order volumes. Simultaneously, improvements in gross margins appear to be driven by increased profitability in the company’s primary business operations. Please see the following data:

The change in contribution margin from 2019 to 2020, along with DoorDash’s achievement of positive adjusted EBITDA, raises questions as to why Uber is facing challenges in replicating similar success with its Uber Eats service. Nevertheless, this transition to adjusted profitability should sufficiently address Wall Street’s concerns regarding DoorDash’s eventual path to GAAP profits.

Based on the current trajectory, achieving this goal could take approximately one year.

Furthermore, DoorDash’s operations have transitioned into cash-generating territory, with the company reporting operating cash flow of $315 million during the first three quarters of 2020, a substantial improvement compared to the -$308 million reported in the same period of 2019.

Overall, the initial assessment is positive. The company is larger, growing at a faster rate, and experiencing reduced losses than anticipated. Coupled with cash generation, positive adjusted EBITDA, and improving gross margins, DoorDash appears to hold considerable value. While lacking the recurring revenue model of a software company and facing potential growth slowdowns due to a possible vaccine, DoorDash may not command a SaaS multiple during its pricing. However, defending its $16 billion valuation may prove less difficult than previously estimated after reviewing these financial figures.

Further analysis will be provided. Stay tuned to TechCrunch.