Uber Technologies (NYSE:UBER) demonstrated a strong financial performance in Q2 of 2024, with Gross Bookings increasing by 19% to $40.0 billion.
Uber showcased a robust financial performance for the second quarter of 2024, reporting significant year-over-year growth across key metrics.
Gross Bookings increased by 19% to $40.0 billion, with a 21% growth on a constant currency basis. Mobility Gross Bookings surged by 23% to $20.6 billion, while Delivery Gross Bookings rose by 16% to $18.1 billion. The company also achieved a notable 21% year-over-year increase in trips, reaching 2.8 billion trips for the quarter.
Uber’s revenue grew by 16% year-over-year to $10.7 billion, or 17% on a constant currency basis. However, business model changes negatively impacted total revenue year-over-year growth by 7 percentage points.
Despite these changes, Uber demonstrated strong profitability, with income from operations reaching $796 million, a 144% increase from the same period last year. Additionally, Adjusted EBITDA surged by 71% to $1.6 billion, highlighting the company’s efficient cost management and operational leverage.
Operating cash flow for the quarter was $1.8 billion, and free cash flow stood at $1.7 billion. Uber’s CEO, Dara Khosrowshahi, emphasized the company’s continued growth and profitability, noting that more consumers are using the platform more frequently than ever before.
CFO Prashanth Mahendra-Rajah highlighted the durability of Uber’s growth and significant cash flow generation, which allowed the company to initiate share repurchases during the quarter.
UBER Reports Better than Expected Q2 Results
Uber’s performance for the second quarter of 2024 exceeded market expectations. The company reported an earnings per share (EPS) of $0.47, significantly surpassing the anticipated EPS of $0.30.
Revenue for the quarter was $10.7 billion, slightly above the expected $10.57 billion, despite the adverse impact of business model changes.
Mobility and Delivery segments both contributed to the revenue growth, with Mobility revenue increasing by 25% year-over-year to $6.1 billion and Delivery revenue growing by 8% to $3.3 billion. The Freight segment, however, remained flat year-over-year, contributing $1.3 billion in revenue.
The company’s ability to manage costs effectively was evident in the Adjusted EBITDA margin, which improved to 3.9% of Gross Bookings, up from 2.7% in the same quarter last year.
Uber’s net income attributable to the company was $1.0 billion, which included a $333 million benefit from net unrealized gains related to the revaluation of equity investments.
UBER Expects Q3 Gross Bookings to Be Between $40.25 Billion and $41.75 Billion
Looking ahead to the third quarter of 2024, Uber provided optimistic guidance. The company anticipates Gross Bookings to be in the range of $40.25 billion to $41.75 billion, representing 18% to 23% year-over-year growth on a constant currency basis.
Adjusted EBITDA is expected to be between $1.58 billion and $1.68 billion, reflecting a 45% to 54% year-over-year growth. This guidance underscores Uber’s confidence in its growth trajectory and operational efficiency.
However, Uber’s outlook also accounts for a roughly 4 percentage point currency headwind to total reported year-over-year growth, including a 7 percentage point currency headwind to Mobility’s reported year-over-year growth.
The recent strengthening of the US dollar versus other currencies is expected to pose an over $400 million headwind to Q3 Gross Bookings, which has been factored into the company’s guidance.
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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
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