Uber Technologies Inc. (NYSE:UBER) Third Quarter 2024 Highlights

Uber Technologies Inc. has achieved a record-breaking third quarter in 2024, as revealed in the latest earnings call led by CEO Dara Khosrowshahi. The company reported a 20% year-over-year increase in gross bookings in constant currency and an all-time high GAAP operating profit exceeding $1 billion. The earnings call covered company performance outlook, highlighting growth in Uber One memberships, advertising segments, and investment in autonomous vehicle technology and market expansion.

Key Takeaways

• Gross Bookings: Rose 20% year-over-year in constant currency.
• GAAP Operating Profit: Surpassed $1 billion for the first time.
• Uber One Membership: Grew to over 25 million, a 70% increase year-over-year.
• Advertising Growth: Nearly 80% increase.
• Market Expansion: Focus on less dense U.S. markets.
• Waymo Partnership: Expanding to Austin and Atlanta.
• Insurance Costs: Increased 16% year-over-year in the U.S. mobility sector.

Company Outlook

• Expectation for continued growth in mobility bookings in the low 20% range for Q4.
• EBITDA margins anticipated to remain flat.
• On track for durable share count reduction by 2025.
• Achieved investment-grade status in Q3 2023.
• Future investor engagements planned in cities including Toronto, Miami, Boston, and San Francisco.

Bearish Highlights

• Rising commercial insurance costs in the U.S. mobility sector.
• Significant investment needed for infrastructure and mapping for autonomous vehicle expansion.

Bullish Highlights

• Strong growth in Uber's advertising business, particularly in delivery.
• Robust consumer demand without signs of trade-down in delivery spending.
• 50% growth in the corporate travel sector (U4B).
• Pursuing strategic and beneficial M&A activities.

Misses

• None mentioned.

Q&A Highlights

• Focus on improving delivery service quality and increasing advertising spend.
• Exploring partnerships for Uber Direct.
• Emphasis on operational efficiency and fleet management.

Uber's performance in the quarter demonstrates strategic efforts to expand into less dense markets and strengthen partnerships in the autonomous vehicle realm. The focus on operational efficiency and capital allocation, alongside solid consumer engagement and delivery trends, positions Uber for future growth. Management remains optimistic and plans to engage investors about the anticipated trajectory as they move into the final quarter of 2024 and beyond.

InvestingPro Insights

Uber's record-breaking Q3 2024 is reflected in its financial metrics and market performance. As of Q2 2024, Uber's revenue over the previous twelve months was $40.06 billion, with a notable revenue growth rate of 14.44%. This aligns with the 20% year-over-year gross booking increase.

Market Valuation: Uber's market capitalization reached $148.12 billion, indicating investor confidence in future growth. The company saw a one-year price total return of 83.53%. Uber forecasts profitability this year, with adjusted operating income standing at $2.014 billion for the last twelve months.

InvestingPro suggests 15 additional tips for a deeper understanding of Uber's financial health and market standing as the company continues to expand services and invest in technologies like autonomous vehicles.

Full Transcript – Uber Technologies Inc (UBER) Q3 2024

Operator: Hello, and welcome to the Uber Third Quarter 2024 Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to Deepa Subramanian, Vice President, Investor Relations. You may begin.

Deepa Subramanian: Thank you, operator. Thank you for joining us today, and welcome to Uber's Third Quarter 2024 Earnings Presentation. [Further conference details and names omitted for brevity]

Dara Khosrowshahi: Uber delivered yet another strong quarter, a record quarter of profitable growth with gross bookings up 20% year-on-year in constant currency. We also generated an all-time high GAAP operating profits of more than $1 billion. This performance was powered by new records in audience and frequency as more people and more places are using Uber more often, with over 7.8 million people driving and delivering with Uber, and 25 million Uber One members.

Prashanth Mahendra-Rajah: Let me add my comments regarding our share repurchase program and our capital allocation priorities. Our focus remains on responsible investment in growth while returning capital to shareholders. We expect our capital return efforts to continue increasing steadily.

Dara Khosrowshahi: Reflecting on opportunities, we've noted increased demand in less dense areas and are investing in improving quality of service.

[Further Q&A details and dialogue omitted for brevity]

Operator: Your final question comes from the line of Benjamin Black with Deutsche Bank.

Benjamin Black: Can you just talk about the broader consumer landscape, how favorable is the state of the macro environment for you in some of your larger markets?

Dara Khosrowshahi: Generally, consumer demand continues to be strong across services, with significant growth in mobility bookings and corporate travel sectors. We face challenges regarding insurance, but we're overall optimistic about our trajectory moving forward.

Prashanth Mahendra-Rajah: Thank you for joining, we look forward to discussing future engagements.