Spyglass Portfolio -- Megatrends

0 New Position: DoorDash, Inc. (DASH) DoorDash Meets Spyglass's Seven Core Investment Criteria • Leadership position in secular growth industry DOORDASH • • • Americans spend $600 billion annually at restaurants, and food delivery continues to take share of total spend → DoorDash is the clear leader in US Food Delivery with more than 60% market share Results-oriented, entrepreneurial management team with long-term focus and proven track record → Tony Xu started the business in 2013 and remains CEO today Sustainable competitive advantage Supply and demand network effects → Best-in-class customer retention and order frequency Above-average long-term revenue growth Revenue has grown from approximately $290 million in 2018 to an estimated $8.4 billion in 2023 Given scale of opportunity, Spyglass estimates durable double-digit topline growth Above-average long-term earnings growth → Spyglass estimates incremental EBITDA margins of over 30%, providing a long runway for significant margin expansion Financially sound → DoorDash has $3.8 billion in cash on the balance sheet (no debt) and generates positive free cash flow Attractive valuation → Spyglass Base Case model suggests the potential for a 20% or greater annual return over the next five years 28

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