Uber Technologies, Inc.

Good morning and welcome to Uber Technology Inc's Q1 2023 earnings conference call. All participants are in a listen-only mode. After the speaker's presentation, we will conduct a question and answer session. To ask a question, you will need to press star followed by the number one on your telephone keypad. As a reminder, this conference call is being recorded. I would now like to turn the call over to Balaji Krishnamurthy, Head of Investor Relations. Thank you. Please go ahead.

Thank you, Operator. Thank you for joining us today and welcome to Uber's first quarter 2023 earnings presentation. On the call today, we have Uber CEO, Dara Khosrowshahi, and CFO, Nelson Che. During today's call, we will present both GAAP and non-GAAP financial measures. Additional disclosures regarding these non-GAAP measures, including the reconciliation of GAAP to non-GAAP measures, are included in the press release, supplemental slides, and our filings with the SEC. each of which is posted to investor.uber.com. As a reminder, these numbers are unaudited and may be subject to change. Certain statements in this presentation and on this call are forward-looking statements. Such statements can be identified by terms such as belief, expect, intend, and may. You should not place undue reliance on forward-looking statements. Actual results may differ materially from these forward-looking statements, and we do not undertake any obligation to update any forward-looking statement we make today, except as required by law. For more information about factors that may cause actual results to differ materially from forward-looking statements, please refer to the press release we issued today, as well as risks and uncertainties described in our most recent annual report on Form 10-K for the year ended December 31, 2022, and in other filings made with the SEC when available. We published our quarterly earnings press release, prepared remarks, and supplemental slides to our investor relations website earlier today, and we ask you to review those documents if you haven't already. We will open the call to questions following brief opening remarks from Dharam. With that, let me hand it over to Dharam.

Thanks, Balaji. Uber is off to a strong start in 2023, with gross bookings up 22%, year-on-year constant currency. Strips outpaced gross bookings growth and accelerated to 24% growth from 19% last quarter. Adjusted EBITDA of $761 million exceeded the high end of our guidance. And we delivered strong incremental adjusted EBITDA margin of 12% and record free cash flow of $549 million. Over the past two years, we've consistently delivered results that have exceeded both investor expectations and our own internal plans. Even as we perform well, we're acutely aware that expectations have only continued to increase for scale platforms like ours. We're working to accelerate our path to gap net income by optimizing our entire P&L, every single line item. Despite any macroeconomic uncertainty, I'm more confident than ever in our prospects and remain committed to best-of-breed cash flow growth. The Uber platform has never been stronger. Our own expectations have never been higher, and we're excited to leave no doubt as to the scope of our ambitions for exceptionally profitable growth. With that, let's open up the call to questions.