Executive Summary
Uber Technologies Inc (UBER) delivered a strong performance in Q1 2024, reporting revenue of $10.13 billion, reflecting a year-over-year growth of 14.82% and a quarter-over-quarter increase of 1.96%. The company experienced a remarkable rise in gross bookings, largely driven by a 21% increase in trips and a 15% growth in its audience base. Despite these positive metrics, net income fell to -$654 million, representing a substantial year-over-year decrease of 316.56%. Management emphasized the ongoing challenges posed by regulatory pressures and competition while highlighting their operational efficiency and solid free cash flow of $1.4 billion, alongside expectations for continued growth into Q2 2024.
Key Performance Indicators
QoQ: -73.62% | YoY:165.65%
QoQ: -145.77% | YoY:-316.56%
QoQ: -144.93% | YoY:-296.93%
Key Insights
**Revenue:** $10.13 billion
**Gross Profit:** $3.96 billion (Gross Margin: 39.1%)
**Operating Income:** $172 million (Operating Margin: 1.7%)
**Net Income:** -$654 million (Net Margin: -6.5%)
**EPS:** -$0.31
**Free Cash Flow:** $1.41 billion
**Adjusted EBITDA:** $1.4 billion (Up 82% year-over-year)
Overall, Uber showcases improved operational metrics yet continues to wrestle with net profitability issues. Management indicated robust growth expectations for Q2 2024, with consiste...
Financial Highlights
Revenue: $10.13 billion
Gross Profit: $3.96 billion (Gross Margin: 39.1%)
Operating Income: $172 million (Operating Margin: 1.7%)
Net Income: -$654 million (Net Margin: -6.5%)
EPS: -$0.31
Free Cash Flow: $1.41 billion
Adjusted EBITDA: $1.4 billion (Up 82% year-over-year)
Overall, Uber showcases improved operational metrics yet continues to wrestle with net profitability issues. Management indicated robust growth expectations for Q2 2024, with consistency in their middle-to-high teens revenue growth target, despite FX headwinds affecting mobility bookings.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
10.13B |
14.82% |
1.96% |
| Gross Profit |
3.96B |
11.20% |
2.17% |
| Operating Income |
172.00M |
165.65% |
-73.62% |
| Net Income |
-654.00M |
-316.56% |
-145.77% |
| EPS |
-0.31 |
-296.93% |
-144.93% |
Key Financial Ratios
operatingProfitMargin
1.7%
operatingCashFlowPerShare
$0.71
freeCashFlowPerShare
$0.68
Management Commentary
1. Growth Strategy:
Dara Khosrowshahi emphasized, "Our results this quarter once again demonstrate our ability to deliver consistent, profitable growth at scale... demand for Uber remains strong."
2. Cash Flow Resilience:
Prashanth Mahendra-Rajah stated, "We generated $4.2 billion of free cash flow over the last trailing 12 months," indicating a strong cash position to manage operations.
3. Technology Impact:
Regarding automation and competition, Khosrowshahi mentioned, "AV technology at maturity is going to be very good for the industry. It will be great for Uber."
4. Competitive Landscape:
When discussing competition in Latin America, Khosrowshahi noted, "We see DiDi being highly competitive... we have a very strong record of effectively responding to defend our category position."
Management's focus on audience growth, strategic investments, and addressing regulatory challenges indicates a balanced approach to maintain competitive advantages.
"Our results this quarter once again demonstrate our ability to deliver consistent, profitable growth at scale..."
â Dara Khosrowshahi
"Demand for Uber remains strong. And just last week, we hit another best week ever for gross bookings..."
â Dara Khosrowshahi
Forward Guidance
Uber's management remains optimistic about Q2 2024, projecting another quarter of over 20% year-on-year growth on a constant currency basis. They acknowledged potential headwinds from foreign exchange impacts, but affirmed strong growth in mobility driven by audience expansion with expectations that adjusted EBITDA margins will stabilize as investments ramp up in Q2. Investors are advised to monitor FX fluctuations and regulatory changes that might impact growth. Management also highlighted the potential for automation in generating efficiencies, presenting a forward-looking positive sentiment on maintaining growth rates.