Mobility and Delivery strength drive Uber’s exceptional performance

ByInvestment Club

Overview

Uber Technologies delivered record-breaking results in Q4 and full-year 2024, reporting $12.0bn in revenue for Q4 and $43.98bn for the full year. The company saw Gross Bookings reach $162.77bn in 2024, with strong performance in Mobility and Delivery.

CEO Dara Khosrowshahi highlighted Uber’s momentum, stating: “Uber ended 2024 with our strongest quarter ever, as growth accelerated across MAPCs, trips, and Gross Bookings. We enter 2025 with clear momentum and will continue to execute against our long-term strategy.”

Q4 2024 vs. Q4 2023:

  • Revenue increased to $12.0bn (+20% YoY), with strong growth in Mobility and Delivery. Combined Mobility and Delivery revenue grew to $10.7bn (+23% YoY).
  • Gross Bookings was $44.2bn (+18% vs. 2023), with Mobility Gross Bookings of $22.8bn (+18% YoY) and Delivery Gross Bookings of $20.1bn (+18% YoY).
  • Net income increased almost 5 times compared to the same period last year, to a value of $6.9bn, including a $6.4bn tax valuation benefit and $556 million in net unrealized gains from Uber’s equity investments.
  • Adjusted EBITDA recorded a value of $1.8bn (+44% YoY), with a 4.2% margin, up from 3.4% in Q4 2023.
  • Operating income was $770m (+18% vs. 2023), driven by driven by cost efficiency and driver supply, enhancing profitability.
  • The company had 3.1bn trips completed (+18% YoY), averaging 33m daily trips.
  • Free cash flow experienced a significant increase compared to Q4 2023, up to the value of $1.7bn (+122% YoY), demonstrating strong liquidity.

Full-Year 2024 highlights:

  • Total revenue rose to $43.98bn (+18% YoY), exceeding analysts’ expectations.
  • Gross Bookings have reached to a value of $162.77bn (+18% YoY), driven by growth in Mobility and Delivery.
  • Income from operations recorded a value of $2.8bn (+152% YoY).
  • Net income increased more than 5 times from one year to the next, reaching a value of $9.86bn, benefiting from a $6.4bn tax valuation release, with a diluted EPS of $4.56 (vs. $0.87 in FY2023).
  • Adjusted EBITDA was $6.48bn (+60% YoY), reflecting operational efficiency.
  • Free cash flow doubled to $6.89bn (+105% vs. 2023), reinforcing Uber’s financial strength.
  • The number of completed trips in 2024 was 11.27bn (+19% YoY).
  • Uber One membership grew to 30m members (+60% YoY), strengthening customer retention.

For 2025, Uber expects Gross Bookings to grow between 17% and 21% year-over-year, with Mobility and Delivery maintaining strong momentum. In Q1 2025, Gross Bookings are forecasted at $42.0bn – $43.5bn, accounting for potential currency headwinds. Adjusted EBITDA is projected to reach $1.79bn – $1.89bn, reflecting 30% – 37% YoY growth as Uber continues to enhance operational efficiency. Additionally, the company has announced a $7bn share repurchase program, with $1.5bn already repurchased in early 2025, reinforcing its commitment to shareholder value and long-term financial strength.

Although the main results reported exceeded Wall Street analysts’ estimates, Uber shares were trading after the results were published at a price approximately 8% lower than the previous day.

Source: TradingView

Author: Ionuț-Adrian Lazar

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