In a bet on ongoing demand for its food delivery and ride-hailing services, Uber Technologies Inc (UBER.N) on Tuesday announced positive quarterly cash flow for the first time ever and projected operating profit for the third quarter above projections.
In early trade, shares of Uber increased by 10%.
These are the crucial figures:
- In terms of the EPS, it has been $1.33, which is not in comparison to the previous estimates.
- Analysts estimated the company’s revenue at $7.39 billion, but it ended up being $8.07 billion instead.
The business reported a second-quarter net loss of $2.6 billion, of which $1.7 billion was attributable to investments and a revaluation of holdings in Aurora, Grab, and Zomato.
Nevertheless, according to CEO Dara Khosrowshahi, Uber continues to profit from rising on-demand travel demand and a change in consumer spending from goods to services.
In contrast to the $240 million to $270 million range it offered in the first quarter, the company generated adjusted EBITDA of $364 million. Gross bookings of $29.1 billion, which were in line with its expectation of $28.5 billion to $29.5 billion, were up 33 percent year over year.
The performance of Uber’s principal business divisions during the second quarter of 2022 is as follows:
- Mobility (gross bookings): They reported $13.4 billion revenue, up 57% year-over-year.
- Delivery (gross bookings): The constant currency number is $13.9 billion, up 12% from last year.
During the pandemic, Uber mainly relied on the expansion of its Eats delivery company, but when passengers started taking more trips, its mobility segment’s revenue topped that of Eats in the first quarter.
The second quarter saw a continuation of the pattern. Compared to delivery’s $2.69 billion in sales, the company’s mobility sector brought in $3.55 billion. For the quarter, Uber’s freight division generated $1.83 billion in revenue. The additional taxes, tolls, and fees from gross bookings are not included in revenue.
Uber reported that its drivers and couriers are making more money now than they were before the pandemic, and that active and new driver growth has accelerated despite the rise in gasoline prices during the quarter.
“Consequently in July, surge and wait times are near their lowest levels in a year in several markets, including the US, and our Mobility category position is at or near a multi-year high in the US, Canada, Brazil, and Australia,” a release from Uber stated.
Uber just made some updates that might help it retain and continue to draw in drivers. For instance, individuals will have the option of selecting the trips they desire and will be able to determine their earnings before to accepting a trip.
1.87 billion journeys were made on the platform during the quarter, up 9 percent from the previous quarter and up 24 percent from the previous year, according to the business. The number of monthly active platform users increased by 21% to 122 million. In total, drivers and couriers made $10.8 billion for the quarter, an increase of 37% from the previous year.
The increase in travel was advantageous to Uber as well. Airport gross bookings, which account for 15% of all gross reservations for mobility and have increased by 139% year over year, have reportedly returned to pre-pandemic levels.
Uber anticipates gross bookings between $29 billion and $30 billion for the third quarter and adjusted EBITDA between $440 million and $470 million.