Financial Data and Key Metrics Changes - In Q2 2025, Uber achieved all-time highs in trips and gross bookings, both increasing by 18% [5] - Adjusted EBITDA, GAAP operating income, and free cash flow also reached new highs [5] - The company anticipates continued strong performance in Q3, projecting high teens growth in gross bookings and low to mid-30s growth in EBITDA [5] Business Line Data and Key Metrics Changes - The introduction of lower-cost products, such as Moto in developing markets, contributed to over $1.5 billion in gross bookings, growing by 40% [22] - The premium business surpassed $10 billion, growing by 35%, while the reserve business grew by 60% [22] - Uber One membership grew by 6 million quarter over quarter, reaching 36 million members, with members spending three times more than single business consumers [25][12] Market Data and Key Metrics Changes - In the top 10 markets, only about 20% of consumers aged 18 and older use Uber on a monthly basis, indicating significant room for audience expansion [24] - The average Waymo vehicle deployed on Uber's network is busier than 99% of human drivers in terms of completed trips per day [29] Company Strategy and Development Direction - Uber is focusing on enhancing cross-platform engagement, with fewer than one in five consumers currently active across both mobility and delivery [6] - The company is investing in autonomous vehicle (AV) partnerships and expanding operating zones, with significant deployments planned in the US and internationally [7] - A new $20 billion share repurchase authorization was announced to enhance shareholder value [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued audience growth and the positive impact of pricing adjustments on consumer behavior [54] - The company is optimistic about the future of AVs, with ongoing partnerships and a focus on commercialization [28][46] - Management highlighted the importance of a barbell strategy in mobility, targeting both low-cost and premium offerings [78] Other Important Information - Uber's advertising business is growing rapidly, separating audience and fulfillment capabilities [80] - The company is exploring data licensing opportunities within AV, aiming to assist in faster market entry for AVs [81] Q&A Session Summary Question: Follow-up on platform initiatives and consumer behavior - Management acknowledged the complexity of executing cross-platform promotions and emphasized the importance of targeted marketing to enhance consumer experience [11] Question: Insights on audience growth and durability - Management attributed audience growth to the introduction of lower-cost products and noted that only 20% of potential consumers are currently engaged [24][22] Question: Update on autonomous vehicle rides and partnerships - Management confirmed that Waymo vehicles are performing well, with high utilization rates, and expressed excitement about ongoing partnerships with various AV players [29][46] Question: Discussion on pricing growth deceleration and consumer response - Management reported positive consumer responses to pricing adjustments, with increased transaction growth observed in July [54] Question: Clarification on buyback strategy and execution - Management explained that the $20 billion buyback is part of a multi-year plan, with a commitment to return a significant portion of cash flow to shareholders [58][59]

Uber Technologies, Inc. Q2 2025 Earnings Supplemental Data August 6, 2025 1 Non-GAAP Financial Measures Disclosure To supplement our financial information, which is prepared and presented in accordance with generally accepted accounting principles in the United States of America, or GAAP, we use the following non-GAAP financial measures: Adjusted EBITDA; Non-GAAP Costs and Operating Expenses; Trailing Twelve Months Adjusted EBITDA; Trailing Twelve Months Free Cash Flow; Free Cash Flow as well as revenue gro ...

Group 1: Earnings Season Overview - The earnings season is underway, with investors focused on the performance of leading companies amidst ongoing challenges such as tariffs [1] - Top Wall Street analysts are assessing companies' abilities to navigate short-term difficulties and deliver long-term returns [1] Group 2: Uber Technologies - Uber Technologies (UBER) is expected to report a 17% year-over-year growth in gross bookings to $46.8 billion for Q2, slightly above Street estimates [3][4] - Revenue growth is anticipated at 18%, with EBITDA projected at $2.09 billion, aligning with consensus estimates [4] - Analyst Mark Mahaney believes UBER's stock remains a top pick due to strong growth in Mobility and Delivery bookings, positive user metrics, and successful robotaxi rollouts [5][6] - Mahaney maintains a buy rating on UBER with a price forecast of $115, while TipRanks' AI analyst has an "outperform" rating with a price target of $108 [6][7] Group 3: Alphabet - Alphabet (GOOGL) has a buy rating reaffirmed by JPMorgan analyst Doug Anmuth, with a price target increase to $200 from $195 [8] - The revised price target is based on better channel checks, third-party data, and favorable forex changes, reflecting a multiple of about 20-times the 2026 GAAP EPS estimate of $9.89 [9] - Anmuth highlights Alphabet's solid fundamentals, innovation focus, and potential growth in non-ad businesses like Cloud and YouTube subscriptions [11][12] - The company is expected to benefit from advances in Generative AI and a shift in advertising dollars to online channels [12][13] Group 4: Meta Platforms - Meta Platforms (META) has a raised price target of $795 from $735, with a maintained buy rating ahead of Q2 results [14] - The upgraded price target is based on a multiple of about 27-times the 2026 GAAP EPS estimate of $29.53, reflecting confidence in robust top-line growth and cost efficiencies [15] - Anmuth emphasizes Meta's competitive advantages, including its scale, growth, and profitability, as well as its targeting capabilities for advertisers [16][17] - The company is expected to invest in growth opportunities in AI and the Metaverse while maintaining cost discipline [17]

Group 1: Pershing Square Capital Management's Portfolio Overview - A significant portion of Pershing Square Capital Management's portfolio, specifically 41.6%, is invested in three companies: Alphabet, Uber Technologies, and Chipotle Mexican Grill [2] - Alphabet constitutes approximately 14% of the portfolio, with over 5.7% in class A shares and nearly 8.3% in class C shares [4][5] - Uber Technologies represents 18.5% of the portfolio, being the largest holding as of the first quarter [8] - Chipotle Mexican Grill accounts for about 9.1% of the portfolio [12] Group 2: Alphabet Insights - Alphabet's stock underperformed in the first half of the year despite strong financial results, likely due to market concerns over regulatory risks, particularly an antitrust lawsuit [4][5] - The company is well-positioned for future growth in cloud computing and artificial intelligence, which are still in early stages [6] - Alphabet's YouTube platform and its competitive advantages, such as network effects and switching costs, contribute to its attractiveness for long-term investors [7] Group 3: Uber Technologies Insights - Uber has transformed into a profitable company, with first-quarter revenue growing 14% year over year to $11.5 billion and net income reaching $1.8 billion [9] - The company's competitive edge is reinforced by its network effect, as more drivers enhance its attractiveness to clients, significantly outpacing competitor Lyft in trips and gross bookings [10] - Long-term prospects for Uber are promising, especially as younger generations are driving less, increasing demand for ride-hailing services [11] Group 4: Chipotle Mexican Grill Insights - Chipotle's stock has faced challenges in 2025 due to potential tariff impacts and weak foot traffic, but it remains a consistently profitable business with strong margins [12][13] - The company is actively expanding, having opened 57 new locations in the first quarter, with a long-term goal of reaching 7,000 locations in the U.S. and Canada [14] - Despite current struggles, the recent dip in stock price presents a buying opportunity for long-term investors [14]

Core Viewpoint - Bill Ackman's Pershing Square fund is transforming Howard Hughes Holdings into a diversified holding company, similar to Berkshire Hathaway, presenting an investment opportunity for those looking to leverage Ackman's expertise [2][16]. Group 1: Investment Portfolio Overview - Pershing Square's equity portfolio is valued at $13.6 billion, with over half invested in three key stocks: Uber Technologies, Brookfield, and Howard Hughes Holdings [3]. Group 2: Uber Technologies - Uber represents 19% of Pershing Square's equity portfolio, with an investment of approximately $2.3 billion, now valued at around $2.6 billion [5]. - Ackman believes concerns regarding autonomous vehicles negatively impacting Uber's value are unfounded, as Uber's extensive network of over 170 million users is valuable for self-driving car companies [6]. - Uber's EBITDA increased by 35% last quarter, supported by a 14% rise in gross bookings, with expectations for similar growth in the upcoming quarter [7]. - The company generated $2.3 billion in free cash flow last quarter, a 66% year-over-year increase, with a goal to convert over 90% of EBITDA into free cash flow in the next three years [8]. - Uber's stock trades at an enterprise value-to-EBITDA ratio of about 25, which is considered attractive given its 30% annual EBITDA growth [9]. Group 3: Brookfield - Brookfield accounts for 17% of the portfolio, with a total investment value of about $2.4 billion after acquiring an additional 6.1 million shares [10]. - The company has a unique corporate structure with several publicly traded subsidiaries, including Brookfield Asset Management, which owns 73% of its shares [11]. - Distributable earnings rose by 27% year-over-year in the first quarter, with management projecting a cash flow growth rate exceeding 20% annually through 2029 [12]. - Brookfield's shares trade at 13.8 times trailing distributable earnings, with Ackman suggesting a valuation multiple of at least 16 [13]. Group 4: Howard Hughes Holdings - Howard Hughes Holdings makes up 14% of the portfolio, with Ackman acquiring a 47% stake worth about $1.9 billion [14]. - The company's assets are valued at $5.9 billion, indicating the stock is trading at a discount [15]. - Management anticipates net operating income growth of up to 4% in 2025, with long-term projections indicating a 37% increase from 2024 levels [15]. - Ackman plans to diversify Howard Hughes by adding an insurance business, which would provide capital for further investments [16]. - The new structure incurs a quarterly fee of $3.75 million to Pershing Square, along with a 0.375% incentive fee, but may offer investors a direct way to invest in Ackman's strategies [17].

Financial Data and Key Metrics Changes - Monthly active consumers grew by 14% to 170 million, with trips increasing by 18% and record adjusted EBITDA of $1.9 billion, up 35% year on year [5][6][7] - Free cash flow reached $2.3 billion, indicating strong financial performance [6] Business Line Data and Key Metrics Changes - Mobility and delivery segments both contributed to gross bookings growth, driven by increased engagement and frequency rather than just price increases [6] - Delivery margins improved to 3.7% of gross bookings, up 70 basis points year on year, with significant contributions from advertising and operational leverage [42] Market Data and Key Metrics Changes - International trip growth outpaced domestic growth, particularly in the travel sector, affecting overall price mix [14] - Sparser markets are growing faster than core urban markets, representing about 20% of total trips in mobility [35][96] Company Strategy and Development Direction - The company is focused on maintaining high utilization rates for its autonomous vehicles (AVs) and expanding partnerships in the AV space [7][15] - Strategic partnerships, such as with Waymo and OpenTable, are aimed at enhancing service offerings and driving future growth [7][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory despite competitive pressures, emphasizing the importance of service quality and customer experience [8][20] - The outlook for Q2 indicates expectations for continued strong top-line growth and improved profitability [7] Other Important Information - The company is actively working on affordability initiatives, including membership programs that enhance customer retention and spending [81] - The competitive landscape remains intense, particularly in the U.S. with Lyft as a primary competitor, but the company maintains a leading market position in most regions [20][22] Q&A Session Summary Question: What kind of elasticity is seen in Mobility pricing? - Management noted that short-term and long-term elasticities are being monitored, with positive results from pricing strategies as insurance headwinds ease [14] Question: Update on competitive landscape? - The competitive environment remains stable, with strong competitors in both domestic and international markets, but the company continues to hold a leading position [20][22] Question: Insights on delivery margins and grocery/retail growth? - Delivery margins are improving, driven by advertising and operational efficiencies, with grocery and retail showing potential for further growth [42][44] Question: Status of insurance headwinds? - Insurance cost increases are moderating, with expectations for modest headwinds moving forward, allowing for better pricing strategies [52][54] Question: Impact of macroeconomic factors on mobility? - Management does not see significant macroeconomic impacts on mobility rides or pricing, with consistent audience growth and frequency [61][62] Question: Frequency opportunities in less dense markets? - While frequency may be lower in less dense areas due to higher car ownership, pricing and margins are expected to be favorable [106]