Uber Technologies, Inc.

Hello and welcome to Uber Q2 23 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star one on your telephone keypad. I will now turn the conference over to Alex Wong, head of investor relations. Please go ahead.

Thank you, Sarah. Thank you for joining us today, and welcome to Uber's second quarter 2023 earnings presentation. On the call today, we have Uber's 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 a 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. 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 statements 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 Form 10-K and in other filings made with the SEC. 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 Dara. With that, let me hand it over to Dara.

Thanks, Alex. For most of our history, profitable wasn't the first thing that came up when you asked someone about Uber. In fact, many observers over the years boldly claimed that we would never make any money. And I understood why they felt that way. The easy availability of capital over the past decade obscured the poor unit economics of many businesses. But we knew they were wrong about Uber, as did many of our investors who backed us over the years. We reached two important milestones this quarter, which demonstrates the significant transformation we've undergone towards profitable growth. Our first-ever GAAP operating profit of $326 million and our first quarter of free cash flow over $1 billion, all the while delivering record platform engagement, strong top-line growth, and a new all-time high of $15.1 billion in total earnings for drivers and couriers on the platform. As we've said before, when it comes to fulfilling our mission and building a generational company, profitability is a means and not merely an end. There are very few businesses that can deliver both strong growth at our scale and continue to expand margins. We remain focused on scaling gap, operating income, and free cash flow, while also making disciplined investments to appropriately fund growth initiatives that will carry us into the future. I also want to take a moment to thank Nelson, who we announced will be leaving Uber on January 5th after overseeing a smooth transition as we search for a new finance leader. Nelson has been a huge part of Uber's transformation over the past five years, taking us public, steering the company to profitability through unprecedented times, establishing credibility and trust with our investor base, and building a phenomenal team along the way. Nelson has been a trusted advisor for me personally, and I know that I speak for the entire company that we're grateful for everything he's done to establish such a strong foundation for a path forward, and that we'll sorely miss hearing Nelson unplugged during our all-hands meetings. With that, let's open the call to questions.