Uber exceeds investor expectations and records a quarterly profit for the first time

Uber Technologies beat analyst estimates for quarterly revenue and profit, but yesterday its shares fell more than 4% in trading after-hour.

Earnings per share was 58 cents versus an expected loss of 51 cents, according to analyst consensus in a Refinitiv survey. Turnover was $ 3.93 billion, against the forecast of $ 3.75 billion.

Uber revealed a net profit of $ 1.1 billion during the second quarter. That is in largely due to unrealized gains of $ 1.4 billion in Didi Global and $ 471 million in Aurora. However, Didi’s shares have fallen by about 37% in the last month, which is after the period of company results, and Uber’s operating losses are still at $ 1.19 billion.

Its adjusted loss before interest, taxes, depreciation and amortization was $ 509 million, in $ 150 million decline from the previous quarter, but an improvement of $ 328 million from last year, CNBC and Al Arabiya reported.net he saw it.

Chief Financial Officer Nelson Chai said in A Letter to Investors: “As we move towards this milestone, we expect Adjusted EBITDA to improve in the third quarter to less than $ 100 million on top of total bookings of between $ 22 billion and $ 24 billion.

So far, Uber Eats’ food delivery segment has boosted business results as people have stopped traveling and turned to food and cargo delivery. Uber added that its delivery business remained strong even as Covid restrictions eased in Worldwide.

There performance of the major segments of business of Uber in the second quarter

Mobility (total bookings): $ 8.6 billion, in growth of 184% compared to last year

Delivery (total bookings): $ 12.9 billion, in 85% increase over last year

Delivery revenue continued to outperform its core passenger services business at $ 1.96 billion, up from $ 1.62 billion.

The company suffered from supply and demand imbalances due to the pandemic, which led to higher prices and longer wait times. In the company’s call with investors, CEO Dara Khosrowshahi said pricing and lead times don’t meet the company’s goals.

“In the second quarter, we invested in the recovery by investing in drivers and made solid progress, with the number of monthly active US drivers and delivery companies in increase of 420,000 from February to July, “Khosrowshahi added in a note.

The company didn’t provide a specific number of drivers, but Khosrowshahi said he was optimistic about growth rates after the company made huge investments to bring people back. The company added a 30% increase in drivers in the United States from June to July.

Uber reported 1.51 billion rides on the platform, in growth of 4% compared to the first quarter and 105% compared to the quarter of last year. Uber said its drivers and delivery companies made a total of $ 7.9 billion during the quarter.

Read More About: Business News

Leave a Reply