Uber(UBER)2025-02-05 15:23Financial Data and Key Metrics Changes - Gross bookings growth on a constant currency basis exceeded expectations, achieving a 21% increase, surpassing the mid to high teens commitment [8][9] - Adjusted EBITDA grew 60% year on year, exceeding the high thirties to forty percent CAGR commitment [8] - Free cash flow conversion as a percentage of EBITDA was 106%, compared to the indicated 90% plus [9] Business Line Data and Key Metrics Changes - Mobility business saw a constant currency growth of 24% in Q4, with an EBITDA margin of 7.8% of gross bookings, up 30 basis points year over year [25][26] - Uber One membership program added five million members in the quarter, totaling 30 million members, a 60% year-on-year increase [7][26] - Delivery gross bookings accelerated quarter on quarter, with over a million active merchants, up 16% year on year [42][47] Market Data and Key Metrics Changes - The company is focusing on expanding into less dense areas, which have shown 1.5 times faster growth compared to more populated areas [38][39] - Latin America represents about a quarter of international gross bookings, with significant currency depreciation impacting top-line growth [66] Company Strategy and Development Direction - The company is investing aggressively in autonomous vehicle (AV) technology, viewing itself as a key partner for AV players [10][20] - The strategy includes expanding supply in less dense areas and enhancing product offerings to drive growth [35][41] - The company aims to balance top-line growth with bottom-line growth, maintaining a focus on premium products to fund lower-cost offerings [108][109] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued strong growth in Q1, despite foreign exchange headwinds, expecting gross bookings growth of 17% to 21% [9][61] - The company anticipates that the commercialization of AV technology will take longer than expected, but sees significant long-term opportunities [52][58] Other Important Information - The company announced a leadership change in the Investor Relations team, with Deepa Subramanian departing and Oji Krishnamurthy stepping in [112][113] Q&A Session Summary Question: Thoughts on investing in autonomous assets and core rides business profitability - Management is investing aggressively in autonomous assets and believes they are well-positioned for future growth [16][20][21] - The mobility profitability trends are expected to continue improving, with a focus on strong returns and growth potential [23][25] Question: Extending the network for rider growth and delivery user behavior - The company is focusing on less dense areas to drive growth and has observed higher growth rates in these regions [35][38] - User behavior in delivery is improving due to increased selection and merchant-funded offers [42][44] Question: AV market evolution and constant currency outlook - Management sees a significant opportunity in the AV market, expecting more players to emerge as technology develops [51][59] - The Q1 guidance reflects adjustments for external headwinds, with a focus on audience growth [61][63] Question: AV commercialization challenges and insurance costs - The company is optimistic about AV deployments in Phoenix and upcoming launches in Austin and Atlanta [75][77] - Insurance costs are expected to stabilize, with a projected high single-digit increase per trip in 2025 [78][80] Question: Business models with AVs and addressable market - There will be experimentation with various business models for AVs, with a focus on fleet partnerships [93][96] - The addressable market for AVs is expected to grow gradually, starting with 10-15% of the overall marketplace [99] Question: Pricing elasticity and future margins - Management believes pricing increases have been largely neutral and emphasizes a balanced approach to growth [107][109] - The company is confident in its ability to deliver on both top-line and bottom-line growth moving forward [109][110]