Uber Technologies, started in 2009 by Garrett Camp and Travis Kalanick, is a big transportation company based in San Francisco, California. Uber changed the way people get around by creating a mobile app that connects passengers with drivers using their own cars. Over the years, Uber has expanded its services to include food delivery, package delivery, freight transport, and more, operating in about 70 countries and 10,500 cities worldwide.
Uber has over 150 million active users each month and 6 million drivers. The company arranges an average of 28 million trips per day. Also, Uber continues to grow and innovate, providing efficient, reliable, and accessible transportation solutions for people around the world.
Uber Fiscal Q4 2024
Uber Technologies (UBER) announced its financial results for the fourth quarter and full year of 2024. The company reported significant growth in Gross Bookings and strong financial performance across its segments.
Financial Highlights:
- Gross Bookings grew 18% year-over-year. Mobility Gross Bookings increased 18% year-over-year. Also, Delivery Gross Bookings were $20.1 billion.
- Revenue increased 20% year-over-year to $12 billion. Combined Mobility and Delivery revenue grew 23% year-over-year.
- Trips during the quarter grew 18% to 3.1 billion, averaging approximately 33 million trips per day.
- Income from operations was $770 million, up $118 million year-over-year.
- Net cash provided by operating activities was $1.8 billion, and free cash flow was $1.7 billion.
Operating Highlights:
- Platform: Uber’s monthly active users reached 171 million, with 3.1 billion trips and $20 billion earned by drivers. Autonomous services were launched in Abu Dhabi, Austin, Dallas, and Osaka. The Uber One membership grew to 30 million.
- Mobility: UberX Share was introduced at airports, and Uber for Teens expanded to 26 new countries. Uber Business Black launched in the US, UK, and Brazil. Partnerships brought 20,000 more taxis in Japan.
- Delivery: SNAP EBT was accepted for grocery orders in the US. Uber Direct expanded partnerships, and new grocery fulfillment features were introduced.
- Freight: Uber Freight launched Broker Access to provide brokers direct access to Uber’s platform, streamlining load booking and reducing fraud.
Outlook
For Q1 2025, Uber anticipates Gross Bookings to grow by 17% to 21% year-over-year. This is considering a 5.5% currency impact on growth. Specifically, there is a 7% currency impact on Mobility and a 4% currency impact on Delivery.
Boards Statements
Uber concluded 2024 with its strongest quarter ever, as growth accelerated across Monthly Active Platform Consumers (MAPCs), trips, and Gross Bookings, according to CEO Dara Khosrowshahi. The company’s performance was driven by rapid innovation and execution across multiple priorities, including the significant opportunity presented by autonomous vehicles. Uber enters 2025 with clear momentum and remains committed to its long-term strategy.
CFO Prashanth Mahendra-Rajah highlighted that record demand in both Mobility and Delivery helped Uber grow Gross Bookings faster than the high end of their guidance. The company exceeded its three-year outlook for Gross Bookings, Adjusted EBITDA, and free cash flow. Despite these strong fundamentals, Mahendra-Rajah believes Uber remains undervalued and plans to be active and opportunistic buyers of their stock.
Impact on the Stock Market
Uber’s stock fell by 3% in pre-market trading after their Q4 2024 earnings report. Despite strong revenue, rising legal and regulatory costs are concerning investors. Uber set aside $462 million for legal matters in Q4, the highest since Q1 2024. To address this, CEO Dara Khosrowshahi is pushing for insurance and tort reform and has filed a lawsuit in New York against groups accused of staging fake car accidents.
