Table of Contents
a. Demand
Met bookings estimate & met bookings growth guidance. Delivery and Freight outperformed. Mobility underperformed. More later.
Mobility bookings missed estimates by 1.3%.
Delivery bookings slightly beat estimates.
Freight beat estimates by 20%. Great to see this sharply accelerating well beyond expectations. Uber cited better execution as the main reason why.
Met revenue estimate.
Met monthly active platform consumer estimate.
Beat trips estimate by 1%.
The rise in gross bookings per trip was mix-shift driven rather than Uber raising prices on services. Higher-margin premium mobility and delivery products outgrew the overall base.
Revenue growth excluding their UK business model change was 18% Y/Y. As a reminder, they reclassified driver payments from cost of revenue to contra-revenue and a similar impact will be in place for Q4 too.
b. Profits
Beat EBITDA estimate by 1% & beat guidance by 1.7%.
Beat EBIT estimate by 2%. EBIT rose by 38% Y/Y. GAAP EBIT rose by 30% Y/Y.
Mobility EBIT margin improved from 24.3% to 31.4% Y/Y.
Delivery EBIT margin improved from 18.1% to 19.3% Y/Y.
Freight EBIT margin improved from -3.1% to -1.9% Y/Y.
Slightly beat EPS estimate by $0.01 & beat guidance by $0.02. Net income rose by 29% Y/Y.
EPS rose by 35% Y/Y.
Missed FCF estimate by 11.5%.
c. Balance Sheet
$10.1B cash & equivalents.
$11.5B investment.
$15.7B total debt. Raised €4.5B in new notes during the quarter, marking the first time it has raised debt in that currency.
d. Guidance & Valuation
Bookings guidance roughly met estimates. This represents 20% Y/Y constant currency (CC) growth.
They expect a 1 point CC mobility growth headwind from war in the Middle East.
EPS guidance met $0.97 estimates. This represents 36.5% Y/Y growth.
EBITDA guidance met $3.18B estimates.
FCF will be impacted by a one-off UK tax payment of $1.5B.
Uber trades for 16x forward EPS. EPS is expected to grow by 37% this year, 31% next year and 25% the year after that.
e. Call & Release Highlights
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