UB

Uber Technologies, Inc. stock research

Mar 31, 2024

FY2024 Q1

Uber Technologies (UBER) Gross Margin — Quarter Ended Mar 31, 2024

In the current quarter, revenue and gross profit were higher than both the preceding quarter and the same quarter last year, while cost of revenue also increased. Gross margin improved sequentially but weakened compared to the year-ago period.

Gross margin takeaway

Quarter ended Mar 31, 2024 · FY2024 Q1

In the current quarter, revenue and gross profit were higher than both the preceding quarter and the same quarter last year, while cost of revenue also increased. Gross margin improved sequentially but weakened compared to the year-ago period.

  • The strongest observable margin driver is the sequential improvement in gross margin, which resulted from revenue growth outpacing the increase in cost of revenue compared to the prior quarter.
  • Gross margin improved from the immediately preceding quarter but was lower than the same quarter one year earlier, indicating a mixed trend over the two periods.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

31.3%

Gross profit

$3.2B

Revenue

$10.1B

Cost of revenue

$7.0B

Quarter-over-quarter change

+0.5 pts

Year-over-year change

-0.5 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Jun 30, 2023$9.2B$2.9B$6.3B31.8%
Sep 30, 2023$9.3B$2.9B$6.4B30.9%
Dec 31, 2023$9.9B$3.1B$6.9B30.8%
Mar 31, 2024$10.1B$3.2B$7.0B31.3%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Dec 31, 2023

+0.5 pts

Year-over-year change

Mar 31, 2023

-0.5 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver is the sequential improvement in gross margin, which resulted from revenue growth outpacing the increase in cost of revenue compared to the prior quarter.

Gross margin improved from the immediately preceding quarter but was lower than the same quarter one year earlier, indicating a mixed trend over the two periods.

Monitor the relationship between cost of revenue growth and revenue growth, as the year-over-year decline in gross margin suggests that costs have increased at a faster rate over the longer term.