Uber’s stock price surged by 4% in premarket trading on Tuesday following the release of the company’s second-quarter results. Although the results fell short of analysts’ revenue expectations, Uber provided optimistic guidance for the future.
Let’s dive into the details:
- Earnings per share: Uber reported earnings of 18 cents per share, exceeding analysts’ expectations of a 1 cent loss, according to Refinitiv.
- Revenue: The company’s revenue for the quarter was $9.23 billion, slightly below analysts’ expectations of $9.33 billion, according to Refinitiv.
Despite missing revenue expectations, Uber saw a 14% increase in revenue compared to the same quarter last year. The company reported a net income of $394 million, or 18 cents per share, in contrast to the net loss of $2.6 billion, or $1.33 per share, from the previous year’s quarter.
In a prepared statement, CEO Dara Khosrowshahi announced that Uber achieved two significant milestones during the quarter. The company reached its first-ever quarterly free cash flow exceeding $1 billion and its first GAAP operating profit. Khosrowshahi expressed confidence in Uber’s ability to remain profitable every quarter going forward.
Regarding personnel changes, Khosrowshahi revealed that CFO Nelson Chai will depart the company in January 2024. Chai played a crucial role in Uber’s initial public offering in 2019, and the company has initiated a search for his replacement.
Uber’s adjusted EBITDA for the quarter was $916 million, marking a remarkable 152% year-over-year increase. Additionally, the company reported gross bookings of $33.6 billion, a 16% increase compared to the previous year.
As for the company’s outlook, Uber anticipates gross bookings between $34 billion to $35 billion and adjusted EBITDA of $975 million to $1.025 billion for the third quarter of 2023, surpassing analysts’ expectations.
Now, let’s take a closer look at Uber’s key business segments:
Mobility (gross bookings): $16.73 billion, up 25% year-over-year
Delivery (gross bookings): $15.60 billion, up 12% year-over-year
In terms of revenue, Uber’s mobility segment generated $4.89 billion, while its delivery segment generated $3.06 billion. Its freight business reported sales of $1.28 billion, reflecting a decline from the $1.83 billion reported in the same quarter last year.
The number of monthly active platform users on Uber reached 137 million in the second quarter, a 12% increase year-over-year. Additionally, the platform saw 2.3 billion trips completed during the period, representing a 22% increase compared to the previous year.
Uber’s quarterly call with investors is scheduled for 8:00 a.m. ET on Tuesday.
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