Food delivery service DoorDash has filed the prospectus for its IPO with the Securities and Exchange Commission. At the company’s initial public offering, it will list its stock on the New York Stock Exchange using the ticker symbol DASH.
DoorDash reports financials
DoorDash reported $1.9 billion in revenue for the first nine months of the year. That's an increase from $587 million in the first nine months of last year. As the company grew its revenue, its net losses declined, falling to $149 million in the first nine months of this year. In last year's first nine months, DoorDash reported $533 million in net losses.
The company has 1 million so-called "Dashers" delivering meals to more than 18 million customers. Through the end of September, DoorDash had also signed up over 5 million people for its DashPass service, which costs $9.99 per month. The service provides free deliveries to subscribers from restaurants that belong to it.
In the last round of private fundraising, the company was valued at $16 billion. DoorDash has raised $2.5 billion so far.
Details on the DoorDash IPO
At the time of its IPO, DoorDash will offer three different classes of stocks with various voting shares. Class A common shares will provide holders with one vote per share, while Class B shares will provide 20 votes each, and Class C won't have any voting rights at all.
It's not unusual for tech companies to offer multiple stock classes, notes CNBC. This is especially true for companies whose CEO also founded the company, which is true of Tony Xu of DoorDash. According to the prospectus, Xu and fellow co-founders Andy Fang and Stanley Tang will enter a voting agreement that allows Xu to "direct the vote" and vote the Class B shares held by Fang and Tang.
Through this structure, Xu will be able to greatly influence all actions that require the approval of shareholders, including appointment of directors to the board, the adoption of amendments to the articles of incorporation and bylaws, and issues dealing with mergers, consolidation or sale of company assets.
DoorDash is expected to be one of the most highly anticipated IPOs of this year.