UB

Uber Technologies, Inc. stock research

Jun 30, 2024

FY2024 Q2

Uber Technologies (UBER) Gross Margin — Quarter Ended Jun 30, 2024

In the current quarter, revenue increased compared to both the prior quarter and the same quarter a year ago, with gross profit rising at a faster pace than cost of revenue, resulting in an improved gross margin. The gross margin was higher than both the immediately preceding quarter and the year-ago quarter.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

In the current quarter, revenue increased compared to both the prior quarter and the same quarter a year ago, with gross profit rising at a faster pace than cost of revenue, resulting in an improved gross margin. The gross margin was higher than both the immediately preceding quarter and the year-ago quarter.

  • The strongest observable driver was the favorable relationship between revenue and cost of revenue, as revenue growth outpaced cost growth, leading to margin expansion.
  • Compared to the prior quarter, gross margin improved, and relative to the same period a year ago, it was also higher. The year-ago gross margin was lower than the current quarter's level.

Gross margin snapshot

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

Gross margin

32.0%

Gross profit

$3.4B

Revenue

$10.7B

Cost of revenue

$7.3B

Quarter-over-quarter change

+0.7 pts

Year-over-year change

+0.2 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
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%
Jun 30, 2024$10.7B$3.4B$7.3B32.0%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2024

+0.7 pts

Year-over-year change

Jun 30, 2023

+0.2 pts

What the margin says

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

The strongest observable driver was the favorable relationship between revenue and cost of revenue, as revenue growth outpaced cost growth, leading to margin expansion.

Compared to the prior quarter, gross margin improved, and relative to the same period a year ago, it was also higher. The year-ago gross margin was lower than the current quarter's level.

Monitor the trajectory of cost of revenue relative to revenue to assess the sustainability of the gross margin improvement.