Executive Summary
Uber Technologies Inc (UBER) reported its second-quarter results for 2024 on August 6, revealing a record revenue of $10.7 billion, representing a year-over-year increase of 15.93%. Over the quarter, adjusted EBITDA surged 71% year-over-year, signaling robust operational efficiency and customer demand. CEO Dara Khosrowshahi noted that despite potential macroeconomic headwinds, the company continues to experience strong consumer engagement and sees no signs of trading down among income cohorts. The operational flexibility of Uber's platform allows the company to expect continued growth while maintaining a focus on profitability. Key investments in autonomous vehicles (AVs) are anticipated to drive significant future growth, and recent strategic partnerships underscore this trajectory.
Key Performance Indicators
QoQ: -15.29% | YoY:-9.64%
QoQ: 447.67% | YoY:188.96%
QoQ: 255.20% | YoY:157.61%
QoQ: 258.06% | YoY:157.89%
Key Insights
Revenue increased to $10.7 billion (YoY: +15.93%, QoQ: +5.62%); Net Income of $1.015 billion (YoY: +157.61%, QoQ: +255.20%); Operating Income rose to $942 million (YoY: +188.96%, QoQ: +447.67%); Adjusted EBITDA increased to $1.55 billion, demonstrating a significant operating leverage as gross bookings grew 21% year-over-year on a constant currency basis. Notably, the gross profit margin stood at 31.37%, marking a slight decline from previous periods, indicating the need for close monitoring of ...
Financial Highlights
Revenue increased to $10.7 billion (YoY: +15.93%, QoQ: +5.62%); Net Income of $1.015 billion (YoY: +157.61%, QoQ: +255.20%); Operating Income rose to $942 million (YoY: +188.96%, QoQ: +447.67%); Adjusted EBITDA increased to $1.55 billion, demonstrating a significant operating leverage as gross bookings grew 21% year-over-year on a constant currency basis. Notably, the gross profit margin stood at 31.37%, marking a slight decline from previous periods, indicating the need for close monitoring of cost controls amid revenue growth.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
10.70B |
15.93% |
5.62% |
| Gross Profit |
3.36B |
-9.64% |
-15.29% |
| Operating Income |
942.00M |
188.96% |
447.67% |
| Net Income |
1.02B |
157.61% |
255.20% |
| EPS |
0.49 |
157.89% |
258.06% |
Key Financial Ratios
operatingProfitMargin
8.8%
operatingCashFlowPerShare
$0.87
freeCashFlowPerShare
$0.82
Management Commentary
Key themes from the earnings call (Q2 2024):
1. Consumer Resilience: "Our audience is bigger than ever and using our services more frequently than ever...we’re confident that Uber can perform well in any recession scenario." - Dara Khosrowshahi.
2. AV Strategy: "Uber is uniquely positioned to offer tremendous value...to deploy their technology at scale...we’re in late stage discussions with additional global AV players to join our platform." - Dara Khosrowshahi.
3. Marketplace Expansion: "The electrification of our fleet is an incredibly important initiative for us...we are going to bring over 100,000 new BYD EVs onto the Uber platform" - Dara Khosrowshahi.
"Gross bookings grew 21% on a constant currency basis, consistent with trip growth." - Dara Khosrowshahi
— Dara Khosrowshahi
"Our membership program essentially brings prices down for both mobility and delivery, and we’re investing in products such as two-wheelers and three-wheelers..." - Dara Khosrowshahi
— Dara Khosrowshahi
Forward Guidance
Management expressed strong confidence in continued growth, predicting mid-20s revenue growth for Q3 2024, supported by expanding market share and enhanced product offerings. The core focus will be on profitability and efficiency, particularly through new service integrations such as grocery and retail, with an expectation that ad revenue should rise significantly. Management emphasized the necessity to remain adaptable in an uncertain economic climate while leveraging technology to maintain cost controls and consumer engagement.