Stay up-to-date with the latest Uber Technologies Inc news by subscribing to our free updates.
Receive a daily email digest, called myFT Daily Digest, that summarizes the latest news from Uber Technologies Inc every morning.
In a significant achievement, Uber announced its first operating profit on Tuesday as it successfully controlled costs after years of substantial spending in its pursuit of growth.
Since 2014, the year Uber disclosed its financial details, the company had accumulated operating losses of $31.5 billion. Now, it has reached a turning point.
During its initial years, Uber embarked on an ambitious global expansion, utilizing massive amounts of capital to subsidize rides and secure market dominance.
In the past, Uber had reported after-tax profits due to gains from disposals or revaluations of equity investments. However, this time, it generated $326 million in pre-tax earnings from its operations for the second quarter of this year, a remarkable improvement from the $713 million operating loss of the previous year.
Furthermore, Uber’s forecast for the current quarter exceeded expectations. It predicted earnings before interest, taxes, depreciation, and amortization to be between $975 million and $1.025 billion, surpassing the Wall Street estimate of $915 million. Additionally, its bookings forecast of $34 billion to $35 billion exceeded the analysts’ prediction of $33.9 billion.
CEO Dara Khosrowshahi attributed Uber’s profitability and quarterly free cash flow of over $1 billion to “disciplined execution, record audience, and strong engagement.” He expressed confidence in the company’s ability to generate incremental profits through cost control.
This achievement highlights Uber’s resilience compared to its competitors in the face of high inflation and economic uncertainty. Lyft, which will release its second-quarter results next month, has struggled to maintain market share against Uber since the onset of the pandemic, leading them to reduce fares.
Uber’s second-quarter revenue grew by 14%, reaching $9.23 billion, slightly below Wall Street’s expectations. However, the company effectively managed cost growth, limiting it to only 1%.
In addition to unrealized gains on investments, Uber reported a profit of $394 million for the quarter, equivalent to 18 cents per share, in contrast to a loss of $2.6 billion in the same period last year. Analysts had previously predicted a loss of 1 cent per share.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
