Uber shares rise on rosy guidance and operating profit, despite revenue miss

Technology

In this article

Uber CEO Dara Khosrowshahi addresses the audience during the keynote at the start an Uber products launch in San Francisco, California on September 26, 2019.
Philip Pacheco | Afp | Getty Images

Shares of Uber rose 4% in premarket trading Tuesday after the company reported second-quarter results that missed analysts’ expectations for revenue but offered rosy guidance.

Here’s how the company did:

  • Earnings per share: 18 cents vs. 1 cent loss expected by analysts, according to Refinitiv.
  • Revenue: $9.23 billion vs. $9.33 billion expected by analysts, according to Refinitiv.

Revenue for the quarter was up 14% from the same quarter last year.

Uber reported a net income of $394 million, or 18 cents per share, compared to a net loss of $2.6 billion, or $1.33 per share, in the same quarter last year.

In a prepared statement, CEO Dara Khosrowshahi said the company achieved two major milestones during the quarter: its first quarter of free cash flow over $1 billion and its first GAAP operating profit.

“Both of these milestones were achieved through a combination of disciplined execution, record audience and strong engagement,” Khosrowshahi said.

The company reported adjusted EBITDA of $916 million, up 152% year over year. Gross bookings for the quarter came in at $33.6 billion, up 16% year over year.

For the third quarter of 2023, Uber said it expects to report gross bookings between $34 billion to $35 billion and an adjusted EBITDA of $975 million to $1.025 billion, both ahead of analysts’ expectations, according to StreetAccount.

Here’s how Uber’s largest business segments performed:

Mobility (gross bookings): $16.73 billion, up 25% year-over-year

Delivery (gross bookings): $15.60 billion, up 12% year-over-year

Uber’s mobility segment reported $4.89 billion in revenue, compared with delivery’s $3.06 billion. Its freight business booked $1.28 billion in sales for the quarter, down from the $1.83 billion it reported for the same quarter last year.

The number of Uber’s monthly active platform consumers reached 137 million in the second quarter, up 12% year over year. There were 2.3 billion trips completed on the platform during the period, up 22% year over year.

Uber will hold its quarterly call with investors at 8:00 a.m. ET Tuesday.

Products You May Like

Articles You May Like

U.S. launches new probe into legacy Chinese chips as tech pressure on Beijing escalates
Protests held in Slovakia after PM meets with Putin in Moscow
Underwater Neutrino Telescopes Installed in Mediterranean to Study Cosmic Mysteries
Trump aide’s Mandelson jibe was clearly designed to stir things up – but why?
MIT Researchers Measure Quantum Geometry of Electrons in Solid Materials for First Time

Leave a Reply

Your email address will not be published. Required fields are marked *