01—Abstract
Summary
Summary of the 8-K filed May 8, 2024. Cited figures are marked; the original filing is the authoritative source.
Uber's first quarter 2024 results, furnished under Item 2.02 of this 8-K, show a company growing top-line volume while improving profitability.
Gross Bookings rose 20% year-over-year to $37.7 billiona (21% in constant currency), with trips up 21% to 2.6 billion and Monthly Active Platform Consumers up 15% to 149 million. Revenue grew 15% to $10.1 billion, but that figure is distorted by business model changes that reclassified certain sales and marketing costs as contra-revenue, which reduced total revenue growth by about 8 percentage points. Profitability was the headline.
Adjusted EBITDA reached $1.38 billionb, up 82% year-over-year, lifting the Adjusted EBITDA margin on Gross Bookings to 3.7% from 2.4%. Operating income swung to $172 million from a $262 million loss a year earlier, and operating cash flow of $1.4 billion produced free cash flow of $1.36 billion. Mobility Adjusted EBITDA rose 40% and Delivery Adjusted EBITDA rose 83%, with Delivery benefiting from cost leverage and advertising revenue.
Investors should weigh the GAAP net loss of $654 millionc, which includes a $721 million pre-tax headwind from marking down equity stakes, principally Aurora, Grab and Didi. Management guided Q2 2024 Gross Bookings of $38.75–$40.25 billion (18–23% constant-currency growth) and Adjusted EBITDA of $1.45–$1.53 billion, implying 58–67% year-over-year growth. Unrestricted cash and short-term investments totaled $5.8 billion at quarter end.
02—Key points
Key Highlights
- Gross Bookings grew 20% YoY to $37.7 billion (21% constant currency); Mobility Gross Bookings rose 25% to $18.7 billion and Delivery rose 18% to $17.7 billion.
- Adjusted EBITDA of $1.38 billion was up 82% YoY, with margin on Gross Bookings expanding to 3.7% from 2.4%, a new quarterly record per management.
- Income from operations was $172 million, compared with a $262 million loss in Q1 2023.
- GAAP net loss attributable to Uber was $654 million, driven by a $721 million pre-tax unrealized loss on equity investments (notably Aurora, Grab and Didi).
- Revenue rose 15% to $10.1 billion, but business model changes reclassifying certain sales and marketing costs as contra-revenue reduced YoY growth by about 8 points.
- Free cash flow of $1.36 billion (up 148% YoY) and unrestricted cash and short-term investments of $5.8 billion at quarter end.
- Q2 2024 guidance calls for Gross Bookings of $38.75–$40.25 billion and Adjusted EBITDA of $1.45–$1.53 billion, versus Q2 2023 Adjusted EBITDA implied by 58–67% growth.
03—Questions
Frequently Asked Questions
Why did Uber report a large GAAP net loss despite strong operating results?
The net loss of $654 million was driven primarily by a $721 million pre-tax unrealized loss from revaluing Uber's equity investments, mainly its stakes in Aurora Innovation, Grab and Didi. These are non-cash mark-to-market items recorded in other income (expense), so they do not reflect core operating performance. Income from operations was positive at $172 million.
Is Uber's revenue growth of 15% a good indicator of underlying business momentum?
Not entirely. Business model changes in some countries that classified certain sales and marketing costs as contra-revenue reduced total revenue growth by roughly 8 percentage points. Gross Bookings, which is unaffected by this reclassification, grew 20% (21% constant currency), and is a better gauge of platform scale.
What drove the improvement in Adjusted EBITDA?
Adjusted EBITDA rose 82% to $1.38 billion, led by Mobility (up 40% to $1.48 billion), where cost leverage from higher volume improved margins, and Delivery (up 83% to $528 million), helped by better volume leverage and higher advertising revenue. Corporate G&A and Platform R&D costs rose modestly, partly offsetting these gains.
What does Uber's guidance imply for the coming quarter?
For Q2 2024, Uber expects Gross Bookings of $38.75–$40.25 billion, equal to 18–23% constant-currency growth, and Adjusted EBITDA of $1.45–$1.53 billion, or 58–67% YoY growth. Management noted a roughly 3-point currency headwind to reported Gross Bookings growth, including about 5 points for Mobility.
How strong is Uber's cash generation and balance sheet liquidity?
Operating cash flow was $1.42 billion and free cash flow was $1.36 billion in Q1 2024, up 148% YoY. Unrestricted cash, cash equivalents and short-term investments totaled $5.8 billion at March 31, 2024. Management cited $4.2 billion of free cash flow over the trailing twelve months. Long-term debt was roughly $9.5 billion.
04—Continue