Analysts Q&A Summary:
1) Doug Anmuth, JPMorgan:
– The question: Doug asked about the elasticity in mobility pricing and utilization rates of Waymo vehicles in Austin.
– The response: Dara explained that there is a typical elasticity observed when prices increase but emphasized full utilization and robust performance of Waymo AVs in Austin, with them being busier than 99% of Austin drivers.
2) Eric Sheridan, Goldman Sachs:
– The question: Eric inquired about the broader competitive landscape for Uber, focusing on pricing dynamics and competition intensity in various geographies.
– The response: Dara acknowledged competitive intensity with Lyft and strong international competitors but stressed that Uber maintains a leading position in most markets.
3) Brian Nowak, Morgan Stanley:
– The question: Brian wanted clarification on the scale and timeframe for Waymo fleet integration in Austin and updates on U.S. mobility growth trends, especially suburbs vs. urban areas.
– The response: Dara expressed a focus on providing high-quality experiences and emphasized continued high growth rates in mobility, with rapid increases in less dense markets.
4) Ross Sandler, Barclays:
– The question: Ross asked about the delivery margin’s improvement trajectory, particularly focusing on grocery and retail versus restaurants.
– The response: Prashant highlighted strong delivery margin expansion driven by advertising and scale benefits, mentioning the potential for growth in grocery and retail contributions.
5) Mark Mahaney, Evercore:
– The question: Mark sought insights on the end of insurance headwinds and competitors’ proximity to Waymo’s AV capabilities.
– The response: Prashant and Dara noted moderating insurance costs and listed several international AV partnerships and the progress of various competitors alongside Waymo.
6) Justin Post, Bank of America:
– The question: Justin asked about macroeconomic impacts on mobility and delivery demand, and competition in San Francisco and LA.
– The response: Dara mentioned consistent demand without significant macro changes, and stable competition in targeted areas like San Francisco and LA.
7) Ken Gorelski, Wells Fargo:
– The question: Ken requested projections for mobility margins in light of affordability initiatives and potential scale commercial applications of AV.
– The response: Prashant emphasized steady year-over-year margin improvement while balancing investments in growth, and Dara shared the integration of AI with flexibility and scalability.
8) Shweta Khajuria, Wolfe Research:
– The question: Shweta inquired about the affordability efforts in delivery and the competitive outlook in Europe.
– The response: Dara discussed member benefits and merchant-funded offers, and noted solid category leadership in Europe, mentioning organic growth as a preference over inorganic expansions.
9) Michael Morton, SVB MoffettNathanson:
– The question: Michael asked about partnerships with LLM for retail delivery and more on the sparse markets’ growth compared to urban centers.
– The response: Dara highlighted initial experiments with AI for improved search experiences and assured healthy growth from less dense markets despite frequency challenges.
10) Nikhil Divani, Bernstein:
– The question: Nikhil was interested in mobility gross bookings’ deceleration trend and less dense markets’ frequency opportunities.
– The response: Prashant reiterated robust audience-driven growth while Dara discussed product innovation contributing to continued expansion in newly targeted areas.
Sentiment Score Distribution Table:
| Analyst Name | Firm Name | Sentiment Score (1-10) |
|——————-|—————–|————————|
| Doug Anmuth | JPMorgan | 8 |
| Eric Sheridan | Goldman Sachs | 7 |
| Brian Nowak | Morgan Stanley | 8 |
| Ross Sandler | Barclays | 7 |
| Mark Mahaney | Evercore | 7 |
| Justin Post | Bank of America | 7 |
| Ken Gorelski | Wells Fargo | 7 |
| Shweta Khajuria | Wolfe Research | 8 |
| Michael Morton | SVB MoffettNathanson | 8 |
| Nikhil Divani | Bernstein | 8 |