UBER Q2 2022 Earnings

Call Details

• Call Title: Uber Technologies, Inc. Q2 2022 Earnings Call
• Date: August 2, 2022 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 reached an annualized run rate of $116B, which the company called an all-time high.
• EBITDA was $364M, which the company described as an all-time high and reported as well above guidance.
• Free cash flow was positive for the first time ever at $382M.
• U.S. Uber Eats grew 25% year-over-year while overall U.S. growth was 21% as referenced on the call.
• Take rate in the quarter declined, and the CFO attributed roughly 100 basis points of the decline to surcharge and lower surge incidence.
• Foreign exchange moved against the company since the last guidance and was cited as a headwind to delivery growth in some European markets.

Guidance

• Q3 EBITDA guidance was described as showing strong incremental progression compared to Q2 results.
• The company reiterated confidence in its 2024 targets and said it 'feels really good' about the 2024 outlook.
• Management emphasized continuing to balance top-line growth and margin improvement without providing incremental numeric detail on Q3 revenue or EBITDA targets on the call.
• CFO stated that free cash flow historically trails adjusted EBITDA by approximately $1B annually but the company expects to outperform that gap going forward.
• The company warned results may be affected by macroeconomic conditions and foreign exchange but stated a high degree of confidence in achieving margin progression.
• Management said they will continue to update guidance and cash-flow expectations 'when it makes sense' and did not provide an updated annualized free cash flow target on the call.