We feel now is a pretty good time to analyse DoorDash, Inc.'s (NASDAQ:DASH) business as it appears the company may be on the cusp of a considerable accomplishment. DoorDash, Inc., together with its subsidiaries, operates a commerce platform that connects merchants, consumers, and independent contractors in the United States and internationally. The US$43b market-cap company's loss lessened since it announced a US$558m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$420m, as it approaches breakeven. The most pressing concern for investors is DoorDash's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts' expectations for the company.

DoorDash is bordering on breakeven, according to the 35 American Hospitality analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$45m in 2024. Therefore, the company is expected to breakeven roughly a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 56% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won't go into details of DoorDash's upcoming projects, however, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there's one aspect worth mentioning. DoorDash currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of DoorDash to cover in one brief article, but the key fundamentals for the company can all be found in one place – DoorDash's company page on Simply Wall St. We've also compiled a list of essential aspects you should further research:

1. Valuation: What is DoorDash worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether DoorDash is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on DoorDash's board and the CEO's background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com