Uber Technologies, Inc. Q3 FY2025 earnings call

• Q3 was an outstanding quarter driven by innovation and execution. Trips grew 22%, mobility trips 21%, gross bookings 21%, with record adjusted EBITDA and free cash flow.
• Expect Q4 to have high teens gross bookings growth and low to mid-30s EBITDA growth. Hit new record on Halloween weekend with over 130 million trips and over $2 billion in gross bookings.
• Six strategic areas of focus: deepening cross-platform engagement (cross-platform consumers spend 3x more and retain 35% better), building hybrid future with human drivers and AVs, investing in local commerce (grocery/retail at $12B gross bookings run rate), multiple gigs for earners, helping merchants, and generative AI.

In Q3, Uber had strong segment performance. Trips grew 22%, with mobility trips up 21%. Gross bookings grew 21%. Adjusted EBITDA and free cash flow reached records. Mobility and delivery both accelerated. Mobility trips grew 21%, significantly exceeding expectations. Delivery also saw growth, with grocery and retail gross bookings run rate at approximately $12 billion and growing faster than restaurant delivery.

• Expect high teens gross bookings growth and low to mid-30s EBITDA growth in Q4.
• Hit a new record over Halloween weekend with more than 130 million trips across mobility and delivery and more than $2 billion in gross bookings.

• Competition in markets like European food delivery could impact performance. For AVs, investment is needed and AVs are not profitable in the short term. Insurance costs and their impact on fares are a factor.

Q: Talk about the path to increase 20% of map in markets where you have mobility and delivery and expand on Nvidia partnership.

A: Dara said 20% of consumers use both mobility and delivery, with cross-platform programs to drive behavior, like top tabs and personalized experiences. On Nvidia, partnership is excited about, with Nvidia's Hyperion for L4 ready AVs, initial 5,000 vehicles with Stellantis, and fleets likely financialized over time.

Q: On delivery side, how much is stimulant to new user growth or increased frequency; on AVs, impact of more supply on road.

A: Prashanth said delivery growth is broad, grocery/retail creating new consumers. Dara said AV scale ops in Austin and Atlanta show faster growth, driver earnings healthy there.

Q: Mobility US business progress urban vs suburban; European food delivery and investment areas.

A: Prashanth said sparse geographies growing at 1.5x denser markets, focus on expanding product, reliability, and fit. Dara said Europe is leading, profitable, and competition is a fact but Uber has built organic position.

Q: Margin flow through in quarter and investments over next 12-18 months.

A: Prashanth said EBITDA up 33% YOY, tracking mid to high teens gross bookings and high 30-40% EBITDA CAGR. Dara said AV is unprofitable initially, but barbell strategy with premium products funding growth bets.

Q: New multiple gigs initiative, impact on driver retention and profitability.

A: Dara said multiple gigs make earners embedded, providing new work opportunities, potentially profitable line of business with Uber AI solutions.

Q: Toast partnership and shift in non-GAAP metrics.

A: Dara said Toast partnership simplifies restaurant setup on Uber Eats. Prashanth said shift to adjusted EPS is for better comparability as company scales.

Q: Mobility growth factors and AV real-world data.

A: Prashanth said growth from trip side, international growth, and barbell strategy. Dara said AV collects real-world data from rideshare network, working with Nvidia to scale operations.