The following is a summary of the Uber Technologies, Inc. (UBER) Q4 2023 Earnings Call Transcript:
Financial Performance:
- Uber had a solid Q4 with adjusted EBITDA of $1.3 billion, above expectations and a GAAP operating income of $652 million.
- The company noted 2023 as an inflection point, indicating Uber’s capacity to generate strong, profitable growth at large scale.
- Moving forward into 2024, Uber looks to maintain this growth momentum, with plans for solid execution.
- Uber Eats business growth quickened from 16% to 17%, while also considerably increasing its margins.
Business Progress:
- Uber registered a 24% YoY increase in trip growth, marking its fourth consecutive quarter of outpacing gross bookings growth.
- New products tailored for enterprises, low-cost transportation options, and new two-wheeler and three-wheeler options have all seen strong adoption.
- Increase of 30% in the number of drivers on the platform and a 10% rise in driver engagement.
- Grocery delivery has been successful, now amassing a $7 billion run-rate business.
- Uber’s advertising department is on track to be a $1 billion run-rate business in the upcoming year.
- Membership program member count has risen to 19 million, helping in user retention and cross-selling across the platform.
- Uber is also planning to expand its grocery and retail services, by adding more retailers and increasing the number of Uber Eats customers who order groceries and other retail items.