Uber exceeds expectations in second quarter financial report.
- Uber reported earnings and revenue that topped estimates for its second quarter.
- Gross bookings for the company's mobility unit increased by 23% to $20.6 billion.
- According to StreetAccount, Uber anticipates bookings of $40.25 billion to $41.75 billion for the third quarter, which is below the average estimate of $41.18 billion.
On Tuesday, Wall Street estimates were exceeded by the reported second-quarter results, causing the stock to rise approximately 4% in pre-market trading.
The company's performance for the period ending June 30 exceeded analysts' expectations.
- Earnings per share: 47 cents vs. earnings of 31 cents expected by LSEG
- Revenue: $10.7 billion vs. $10.57 billion expected by LSEG
Uber's mobility unit reported a 23% increase in gross bookings to $20.6 billion, while the delivery unit saw a 16% increase to $18.1 billion. However, the freight unit's gross bookings remained flat at $1.27 billion.
Dara Khosrowshahi, CEO, stated that the company anticipates 20% growth in the second quarter due to the expected expansion in its core mobility business and the increasing frequency of orders for food and trips among its membership subscribers.
Uber anticipates bookings of $40.25 billion to $41.75 billion in the third quarter, with the middle of the range falling short of the $41.18 billion average estimate. The company expects adjusted earnings of $1.58 billion to $1.68 billion, with the middle of the range slightly above the $1.62 billion average estimate.
In the second quarter, Uber's "monthly active platform consumers" (MAPCs) reached 156 million, with 2.77 billion trips via the Uber platform. This is a 19 million increase from the same period a year ago, when there were 137 million MAPCs and 2.28 billion trips.
Uber reported a net income of $1.02 billion for the quarter, with a pre-tax benefit of $333 million from equity investments.
In May, the company announced a partnership with Uber Eats to add a "restaurants" tab to the grocery delivery app, allowing users to order from restaurants and have deliveries fulfilled by Uber Eats.
Uber and BYD have partnered to provide 100,000 electric vehicles to Uber drivers in Europe and Latin America, with plans to collaborate on future autonomous-capable vehicles for the Uber platform.
Uber offers various incentives and alternatives to encourage drivers to use battery electric vehicles instead of gas-powered cars, although BYD vehicles are not sold or leased in the U.S.
On July 31, Bank of America research analysts predicted that Uber executives would discuss the future effects of autonomous vehicles or robotaxi services on their bookings and whether consumers' reduced spending on restaurants and travel would have a broader impact on Uber's overall bookings.
As of Monday's close, Uber shares had dropped 5% for the year, leaving them valued at $58.48.
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