Operating Income More Than Doubles - and This Time the Equity Stakes Cooperate Too
Income from operations was $796 million, up 144% from $326 million a year ago and a sixth consecutive positive GAAP quarter - the largest single-quarter operating profit this site has recorded for Uber. Adjusted EBITDA rose 71% year-over-year to $1,570 million, a ninth straight positive quarter. Net income attributable to Uber was $1,015 million, up from $394 million a year ago, this time aided by a $398 million favorable equity-stake swing (a $220 million gain on Grab and a $178 million gain on Didi) rather than working against the operating result as it did last quarter. Six-month free cash flow reached $3,080 million, up 82% from $1,689 million a year ago; standalone Q2 free cash flow was roughly $1,721 million (six-month total less the $1,359 million already reported for Q1 2024 in the 2024-03 post), a new single-quarter high. Revenue grew 16% to $10,700 million.
Mobility Adjusted EBITDA grew 34% to $1,567 million and Delivery Adjusted EBITDA grew 79% to $588 million, both new highs. Freight Adjusted EBITDA remained negative at $(12) million, a slight improvement from $(14) million a year ago but still a loss for a sixth straight quarter this site has tracked.
The Prescription
This quarter is the cleanest positive result in Uber's recent history: operating income more than doubled, Adjusted EBITDA grew 71%, free cash flow hit a new high, and - unlike Q1 2024's swing the other way - the equity-stake marks this time added to rather than subtracted from net income. Readers should still discount the $398 million equity-stake gain when assessing underlying earnings quality, but even without it, net income of roughly $617 million would represent Uber's strongest operations-driven quarter yet. Freight remains the one lingering soft spot - a sixth straight quarterly loss, though narrowing slightly - in an otherwise broadly positive quarter.
Key Financial Metrics
Q2 2024 vs. Q2 2023 - consolidated, reported in USD
| Metric | Q2 2024 | Q2 2023 | YoY |
|---|---|---|---|
| Revenue | $10,700M | $9,230M | ✅ +16% |
| Adjusted EBITDA» | $1,570M | $916M | ✅ +71%, ninth straight positive quarter |
| Income (Loss) from Operations | $796M | $326M | ✅ +144%, sixth straight positive quarter |
| Net Income (Loss) attributable to Uber | $1,015M | $394M | ✅ +158%, aided by a $398M favorable equity-stake swing |
| Free Cash Flow (six months) | $3,080M | $1,689M | ✅ +82% |
Balance sheet: Dec 2023 vs. Jun 2024
| Balance sheet metric | Jun 2024 | Dec 2023 | Change |
|---|---|---|---|
| Cash and Cash Equivalents | $4,497M | $4,680M | roughly flat, -4% |
| Total Assets | $41,514M | $38,699M | ✅ +7% |
| Total Liabilities | $27,731M | $26,017M | up 7% |
| Long-term Debt, net of current | $9,454M | $9,459M | roughly flat |
| Goodwill | $8,083M | $8,151M | roughly flat |
Total assets grew 7% since year-end, largely on a higher short-term investments balance ($1,795 million from $727 million). Cash and cash equivalents dipped slightly as some of that balance shifted into short-term investments.
Uber's operating income more than doubled year-over-year to $796 million - a sixth straight positive quarter and the largest single-quarter operating profit this site has recorded - while a $398 million favorable equity-stake swing pushed net income to $1,015 million.
Segment Results
Segment Adjusted EBITDA, Q2 2024 vs. Q2 2023
| Segment | Adj. EBITDA Q2 2024 | Adj. EBITDA Q2 2023 | Change |
|---|---|---|---|
| Mobility | $1,567M | $1,170M | ✅ +34% |
| Delivery | $588M | $329M | ✅ +79% |
| Freight | $(12)M | $(14)M | still a loss, roughly flat |
Mobility and Delivery both set new quarterly highs. Freight's loss narrowed marginally but has now been negative for six consecutive quarters this site has tracked.
Beyond the Usual
The Equity-Stake Mechanism Finally Works With the Operating Story, Not Against It
Since Q2 2023, this site has repeatedly separated Uber's operating results from the unpredictable swings in its Aurora, Grab, Didi, and Joby equity stakes - a favorable swing boosted Q2 2023's profit, an unfavorable one wiped out Q1 2024's operating gain. This quarter, for the first time in this site's recent coverage, both point the same direction: genuine operating improvement (income from operations +144%) plus a modest tailwind from the equity stakes (+$398 million, Grab and Didi both gaining). The distinction matters less this quarter precisely because the operating result alone would have been a strong quarter regardless.
Stock Price Since Last Quarter
Uber's stock pulled back after Q1's rally: from a March 28, 2024 close of $76.99, down to $66.27 in April, $64.56 in May, before recovering to $72.68 at the June 28, 2024 close (the last trading day of the quarter) - a decline of roughly 6% for the quarter, ending a six-quarter winning streak that had run since Q3 2022.
Target Valuation Range
Fairly-valued. Uber traded at an EV/Revenue multiple of roughly 4.4x against TTM revenue as of this quarter's close - down from Q1 2024's ~4.7x, as the stock's pullback outpaced trailing revenue growth.
With approximately 2,100,937,229 shares outstanding as of August 2, 2024 (per the 10-Q's cover page) and a June 28, 2024 close of $72.68, Uber's market capitalization was approximately $152.7 billion. Against total liabilities of $27.73 billion and cash and cash equivalents of $4.50 billion, enterprise value was roughly $175.9 billion - down from the ~$183.0 billion calculated in the 2024-03 post, on the stock's quarterly decline. Against TTM revenue of roughly $40.1 billion (FY2023's $37,281 million, less first-half 2023 revenue of $18,053 million, plus this quarter's first-half 2024 total of $20,831 million), that implies an EV/Revenue» of roughly 4.4x.
| Jun 2024 | Mar 2024 | |
|---|---|---|
| TTM Revenue | $40.1B | $38.6B |
| Enterprise Value | $175.9B | $183.0B |
| EV/Revenue | 4.4x | 4.7x |
Despite the stock's pullback, the operating story kept improving - six straight positive GAAP operating quarters, a ninth straight positive Adjusted EBITDA quarter, and free cash flow at a new high. This site continues to hold off on a full DCF but notes the multiple compression this quarter (4.7x to 4.4x) came entirely from price, not from any deterioration in the underlying business - arguably making the stock more attractively priced relative to its own fundamentals than at the end of Q1.
Uber Technologies, Inc.'s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, filed with the SEC in August 2024.