Uber Technologies, Inc. Q2 FY2025 earnings call

• Q2 was a record quarter with robust growth in trips, gross bookings, adjusted EBITDA, GAAP operating income, and free cash flow.
• Expect strong Q3 performance with high teens gross bookings growth and low- to mid-30s EBITDA growth.
• Andrew McDonald as COO to focus on supercharging platform strategy, with Mobility and Delivery leaders reporting to him.
• Autonomous vehicle progress: expanded operating zones in Austin, Abu Dhabi, launched in Atlanta with Waymo, and new partnerships with Baidu, Lucid, etc.
• Announced a new $20 billion share repurchase authorization for value creation for shareholders.

In Q2, Uber achieved all-time highs in audience and frequency, with trips and gross bookings both up 18%. Adjusted EBITDA, GAAP operating income, and free cash flow reached new highs. Mobility saw growth in various products: Moto (over $1.5 billion in gross bookings, growing 40%), premium business (over $10 billion, growing 35%), and reserve business (growing 60%). Delivery had Uber One with 36 million members, growing 60%, and search savings introduced as a new product for Mobility users.

• Expect high teens gross bookings growth and low- to mid-30s EBITDA growth in Q3.
• Plan to continue share repurchases as part of ongoing value creation for shareholders.

• Actual results may differ materially from forward-looking statements due to factors in SEC filings.
• Uncertainties around successful execution of platform initiatives and commercialization of autonomous vehicles.

Q: Follow up on platform initiatives and super app strategy A: Dara discusses cross-promotion between Mobility and Delivery, the importance of hyper-personalization, membership program (Uber One) growth, and the journey towards a more integrated platform, noting that only a fraction of consumers use both Mobility and Delivery currently but sees potential for growth.

Q: Core platform growth and AV utilization A: Dara talks about audience growth from new products like Moto, premium, and reserve, and Uber One member growth. On AV, mentions Waymo utilization in Austin is strong, Atlanta launch is early but promising, and partnerships with various OEMs and software players.

Q: AV partnerships and OEMs A: Dara discusses OEM partnerships, emphasizing the importance of software and hardware supply for AV, and how partnerships with Nuro, Lucid, etc., contribute to AV supply. Prashanth mentions recycling proceeds from minority stakes to fund AV investments.

Q: Mobility pricing and buyback A: Dara talks about positive response to pricing changes, passing on insurance savings to consumers, and transaction growth acceleration in July. Prashanth discusses the share repurchase authorization, noting over 60% of previous authorization executed and plans to return 50% of free cash flow to shareholders.

Q: AV vehicle commitment and Waymo A: Prashanth and Dara talk about vehicle commitments in AV partnerships, emphasizing the economic benefits of certain partnerships, and Waymo deployments in Austin and Atlanta, with plans to expand further but no specific timelines provided.

Q: Mobility opportunities and tech externalization A: Dara discusses the barbell strategy in Mobility (lower-priced and premium offerings), with premium having higher near-term profitability potential. Talks about externalizing tech capabilities, including data licensing in AV and Uber AI solutions for data labeling, translation, etc.