UBER Q1 2023 Earnings

Call Details

• Call Title: Uber Technologies, Inc. Q1 2023 Earnings Call
• Date: May 2, 2023 at 12:00 PM UTC
• Management Team:
  • Balaji Krishnamurthy (Head of Investor Relations)
  • Dara Khosrowshahi (Chief Executive Officer)
  • Nelson Chai (Chief Financial Officer)

Call Summary

Financial Performance

• Gross bookings were up 22% year-on-year on a constant currency basis.
• Strips outpaced gross bookings growth and accelerated to 24% growth from 19% last quarter.
• Adjusted EBITDA was reported as $761M, which the company said exceeded the high end of guidance.
• The company reported incremental adjusted EBITDA margin of 12% for the quarter.
• Record free cash flow for the quarter was reported at $549M.
• The company reported operating results using both GAAP and non-GAAP measures and noted non-GAAP reconciliations are in the press release and filings.
• Mobility and delivery revenue trends were cited as drivers of the top line with mobility described as accelerating versus prior periods.

Guidance

• The company referenced forward EBITDA in the $800M to $850M range as a near-term target.
• Q1 incremental adjusted EBITDA margin of 12% was described as above the company target and the midpoint of Q2 guidance was described as implying about 10% incremental EBITDA.
• Core mobility and delivery bookings for Q2 were guided to grow roughly 18% to 22% on a constant currency basis according to the CFO.
• Headcount was stated as expected to be flat to down for the balance of the year as a starting operating assumption.
• No new multi-year revenue guidance for 2024 was provided on the call and the company said it was not updating 2024 top-line guidance.
• The company said it will dynamically manage costs and adjust if the business materially slows, and that capital allocation decisions are being made with an emphasis on delivering GAAP operating profit.