Market Movers - 11 January 2025
Stocks covered: UBER, INPST, EVO, APR.WA, ADYEN
Welcome back to the Wolf of Harcourt Street Newsletter.
Market Movers is your time-saving guide to crucial stock news, cutting through the noise.
With all that being said, let’s dive into today’s edition!
Todays Agenda
Uber Share Repurchase Program and New Partnerships
InPost Q4 2024 Trading Update
Evolution CFO Transition
Auto Partner December 2024 Sales Update
Adyen Launches Uplift
1. Uber (UBER)
$1.5 Billion Accelerated Share Repurchase Program
Uber has announced an accelerated share repurchase (ASR) agreement to buy back $1.5 billion of its common stock, as part of its previously announced $7.0 billion share repurchase authorisation.
Under the agreement, Uber will initially receive 18,578,727 shares, representing approximately 80% of the expected repurchases. The final number of shares repurchased will be determined by the volume-weighted average price of Uber stock during specified dates in Q1 2025, less a discount.
Source: Uber IR
My Perspective: Management's decision signals confidence in Uber's stock being undervalued relative to the strength of its business. The ASR represents a value-accretive use of capital, retiring shares equivalent to over 1% of Uber's market capitalization. This move enhances shareholder value.
Partnership with NVIDIA to Accelerate Autonomous Mobility
Uber and NVIDIA have partnered to accelerate the development of AI-powered autonomous driving technology, leveraging their respective expertise in data, computing power, and AI innovation.
Uber's Contribution: Data from 32 million daily trips to inform and refine autonomous driving systems.
NVIDIA's Contribution: Cutting-edge platforms, including:
NVIDIA Cosmos™: A platform for developing physical AI systems, like robots and autonomous vehicles, with tools to reduce costs and democratize access to AI development.
NVIDIA DGX™ Cloud: A high-performance AI platform offering scalable tools for multi-cloud environments.
Source: Uber IR
My Perspective: Uber's unrivalled data reserves position it as a key player in autonomous mobility. NVIDIA CEO Jensen Huang clearly recognizes this advantage.
The partnership offers strategic benefits for both companies:
Uber: Accelerated progress toward safe, scalable autonomous driving solutions.
NVIDIA: Expansion of its AI platforms into the mobility ecosystem, reinforcing its leadership in autonomous vehicle development.
Uber Becomes Delta Airlines Exclusive Rideshare Partner
Delta Air Lines has ended its eight-year partnership with Lyft, choosing Uber as its exclusive rideshare partner and linking its SkyMiles loyalty program to Uber starting this spring. Customers can now earn Delta SkyMiles through Uber rides and Uber Eats orders, enhancing travel and dining rewards.
The partnership aligns seamlessly with American Express, which already offers Uber-related credits to its cardholders.
Recent Uber features improving airport travel include:
Uber Shuttle: Budget-friendly rides to LaGuardia Airport.
UberXXL: Extra trunk space for travelers with additional luggage.
Flight Capture: A feature on Uber Reserve to ensure timely airport arrivals.
UberX Share at Airports: A shared ride option saving up to 25% compared to UberX.
Source: Uber Newsroom
My Perspective: Delta’s switch from Lyft to Uber likely reflects Uber’s broader platform and global reach. Lyft reported 24.4 million active riders and 216 million rides in Q3 2024, while Uber had 161 million monthly active users and 2.8 billion rides in the same period. This is a clear win for Uber, reinforcing its dominance in the mobility sector.
2. InPost (INPST) Q4 2024 Trading Update
InPost achieved record-breaking volumes of over 1 billion parcels in 2024, a 22% year-over-year (YoY) increase, significantly outperforming e-commerce market growth in Poland, France, and the UK.
In Q4 2024, the company handled 322.1 million parcels, reflecting a 20% YoY increase, with a record peak day of nearly 14 million parcels in the lead-up to Christmas.
Poland
Delivered 709.3 million parcels in 2024, representing 20% YoY growth.
Q4 volumes reached 209.9 million parcels, exceeding expectations due to guaranteed pre-Christmas delivery and high logistics quality.
Mondial Relay (France)
Delivered 266.6 million parcels in 2024, marking an 11% YoY increase.
Growth was primarily driven by the B2C segment (+26% YoY), with diversification away from C2C.
Automated Parcel Machine (APM) volumes surged by an impressive 103% YoY, enhancing operational efficiency.
UK
Delivered 93.2 million parcels in 2024, doubling volumes from 2023.
Q4 volumes totaled 27.2 million parcels, a 58% YoY increase, driven by rapid network expansion and improved logistics.
The UK network is operating at over 100% capacity, signalling significant potential for further APM deployment.
Source: InPost IR
My Perspective: This trading update, while not a full earnings report, reflects strong performance across KPIs. Parcel volumes continue to grow at a 20% YoY rate, exceeding management's expectations. In Q3, management had guided for high-teens volume growth in Q4, comprising mid-teens growth in Poland and 20% growth outside Poland.
In 2024, InPost deployed a record 11,528 APMs, bringing the total network density to 46,977. With 25,269 APMs in Poland, 64% of the population is now within a seven-minute walk, and in cities, this figure rises to 90%.
We are beginning to see scale and network effects take hold, as InPost's ability to deploy more APMs than any competitor further strengthens its position. As volumes grow, InPost enhances its network density and operational efficiency, solidifying its competitive edge.
3. Evolution (EVO) CFO Transition
Jacob Kaplan, Evolution’s CFO since 2016, is stepping down but will remain in an advisory role during the transition. Joakim Andersson will take over as CFO on February 18, 2025. Andersson brings extensive CFO experience from listed companies and private equity, including Kinnevik AB, Cint Group AB, and Slättö. However, this is his first role in the gaming and live casino industry.
CEO Martin Carlesund praised Kaplan’s contributions to Evolution’s growth and framed Andersson’s appointment as a step toward the company’s continued development.
Source: Evolution IR
My Perspective: The announcement initially raised questions about whether Kaplan’s departure stemmed from internal issues or personal reasons. However, in a subsequent interview with a Swedish newspaper, Carlesund clarified:
“We’ve searched long and hard. We agree that we needed to find the right replacement before making any changes. So this has been in the works for a while.”
From my perspective as someone with an accounting and finance background, I don’t view the CFO role at Evolution as pivotal compared to other industries. I’d be far more concerned if Chief Product Officer Todd Haushalter were to leave, given his critical role in Evolution's product innovation.
4. Auto Partner (APR.WA) December 2024 Sales Update
Auto Partner reported December 2024 revenue of PLN 237.0 million, reflecting a 5.6% YoY increase. On a cumulative basis, 2024 year-to-date revenue stands at PLN 4.11 billion, representing a 12.6% YoY increase.
Source: Bankier
My Perspective: This update marks the end of a disappointing year for Auto Partner. While margins were expected to face challenges in 2024, growth has also slowed sequentially throughout the year, declining from 19% in Q1 to just 8% in Q4. While we await the full earnings review, 2025 will be pivotal as Auto Partner begins to lap lower comparatives
5. Adyen (ADYEN) Launches Uplift
Adyen has launched Adyen Uplift, an AI-powered payment optimization suite designed to:
Increase payment conversion rates
Simplify fraud management
Reduce payment costs
Uplift leverages Adyen’s global transaction dataset (over $1 trillion worth of payments data) for real-time optimization. Businesses benefit from tailored performance recommendations and the ability to test different payment configurations, enhancing payment funnel efficiency by balancing conversion, fraud prevention, and cost reduction.
Early pilot results demonstrated up to a 6% increase in payment conversion rates. Key customer outcomes include:
On: Achieved a 2% increase in conversion rates.
Nord Security: Improved conversion rates on customer-initiated transactions by 10%, while effectively controlling fraud and costs.
Uplift also automates fraud control using AI, significantly reducing reliance on manual rules. Pilot participants:
Reduced manual risk rules by 86%, with 35% eliminating them entirely.
Improved fraud detection accuracy while minimizing false positives.
Cost optimization is another critical benefit. Uplift helps businesses lower payment processing costs by up to 5%. AI-driven routing identifies the most cost-effective transaction paths and tailors checkout flows for maximum efficiency.
Source: Adyen IR
My Perspective: I’ve previously highlighted that Adyen is building a remarkable data repository, which holds immense value for merchants. The launch of Uplift demonstrates the first formal solution leveraging this data. By combining AI-driven automation, fraud mitigation, and cost optimization, Uplift addresses critical pain points in payment management. This launch further solidifies Adyen’s position as a leader in transforming payment processes into a strategic advantage for businesses.
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Wolf of Harcourt Street
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Twitter: @wolfofharcourt
Email: wolfofharcourtstreet@gmail.com