What drove UBER's EPS growth in Q3 2024?

Uber's EPS grew from $0.18 in Q2 2023 to $1.2 in Q3 2024, primarily driven by increased revenue and effective cost management:

1. **Revenue Growth**: Uber's total revenue for Q3 2024 was $11.19 billion. This significant increase, especially in the Mobility and Delivery segments, contributed to the higher EPS. Mobility revenue grew to $6.13 billion, up 25% year-over-year, while Delivery revenue was $3.29 billion, up 8%. Freight revenue also contributed, with $1.27 billion, flat year-over-year.
2. **Cost Management**: Uber's Adjusted EBITDA soared by 71% year-over-year to $2.6 billion, indicating improved profitability. This was driven by effective cost management, as evidenced by the Adjusted EBITDA margin improving to 3.9% of Gross Bookings. This margin improvement is a result of better cost leverage from higher volume, which has been a key strategic focus for Uber.
3. **Gross Bookings**: Uber's Gross Bookings grew by 19% year-over-year to $39.95 billion. This increase, which surpassed analyst expectations, reflects strong demand for Uber's services and contributes to higher revenue and, consequently, EPS.
4. **Currency Impact**: Despite the positive revenue and EPS growth, Uber noted that the recent strengthening of the US dollar against other currencies is expected to create a headwind of over $400 million for Q3 Gross Bookings. This currency impact is a factor to consider in the context of Uber's international operations and revenue streams.

In summary, Uber's EPS growth in Q3 2024 is driven by robust revenue growth across its core segments, effective cost management leading to improved Adjusted EBITDA, and increased Gross Bookings. These factors, combined with the company's strategic focus on cost leverage and operational efficiency, have contributed to the significant EPS growth observed in the quarter.