Uber Technologies Inc (UBER) Q3 2024 Earnings Call Highlights: Record Profits and Robust Growth ...

GuruFocus News
3 min read

In This Article:

  • Gross Bookings: Up 20% year-on-year in constant currency.

  • GAAP Operating Profits: More than $1 billion, an all-time high.

  • Driver and Delivery Earnings: More than $18 billion earned by over 7.8 million people during the quarter.

  • Uber One Membership: Over 25 million members, up 70% year-on-year.

  • Advertising Business Growth: Nearly 80% year-on-year increase.

Release Date: October 31, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Uber Technologies Inc (NYSE:UBER) reported a record quarter of profitable growth with gross bookings up 20% year-on-year in constant currency.

  • The company achieved an all-time high GAAP operating profit of over $1 billion.

  • Uber's advertising business grew nearly 80% year-on-year, showcasing strong performance in this segment.

  • The number of Uber One members increased by 70% year-on-year, reaching over 25 million.

  • Uber's autonomous strategy is progressing well, with 14 AV partners recognizing the value Uber brings to their deployment plans.

Negative Points

  • Uber Technologies Inc (NYSE:UBER) is facing substantial increases in commercial insurance costs, particularly in high-cost states like New Jersey and California.

  • The company noted a typical elasticity in consumer behavior, with transaction growth slowing as prices increase due to higher insurance costs.

  • Mobility bookings decelerated by 3 percentage points to 24%, attributed to tougher comparisons and less year-on-year pricing impact.

  • Insurance costs are expected to continue rising, albeit at a moderated rate, impacting overall cost structure.

  • The expansion of autonomous vehicle partnerships is still in early stages, with limited deployment in cities like Phoenix, making it too soon to assess incremental volume impact.

Q & A Highlights

Q: Can you elaborate on the opportunity and operational dynamics in less dense markets? A: Dara Khosrowshahi, CEO, explained that Uber sees significant growth potential in less dense markets, which have been growing faster than core urban areas. The focus began with delivery in non-core cities, which make up a large portion of the market. Uber is investing in improving selection and building supply and demand liquidity in these areas, expecting it to be a growth tailwind over the next few years.

Q: How are US Mobility bookings trending, and what impact is the Vaymo partnership having in Phoenix? A: Dara Khosrowshahi noted that US Mobility continues to grow, though insurance cost increases have affected transaction growth. Weekday growth is strong, and Uber For Business is thriving. Regarding Vaymo in Phoenix, it's too early to determine the impact, but the partnership is expanding to Austin and Atlanta, which will provide more insights.

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