Uber Technologies shares are rising after the ride-hailing company exceeded earnings expectations for the second quarter. Compared to a per-share loss of $1.33 in the same period last year, Uber reported adjusted earnings of 18 cents per share for the June quarter. Additionally, revenue increased from $8.07 billion to $9.23 billion year-over-year.
Growth in Gross Bookings
In a FactSet poll, analysts predicted that Uber would report adjusted earnings of 16 cents per share on revenue of $9.34 billion. However, Uber exceeded those expectations. Gross bookings, which represent the value of transactions made on the Uber app, reached $33.6 billion, showing an 18% increase compared to the previous year (on a constant currency basis).
Positive Stock Performance
Following this positive news, shares in Uber rose by 3.9% to $51.38 in premarket trading. This year alone, the stock price has doubled, reflecting investors' confidence in Uber's performance.
Powered by Ride-Hailing and Delivery Segments
Uber's growth was primarily fueled by its ride-hailing segment, known as Mobility, with gross bookings soaring by 28% to $16.7 billion. Additionally, delivery gross bookings increased by 14% to $15.6 billion.
CEO's Statement
In a statement released by the company, Uber CEO Dara Khosrowshahi attributed the strong quarter to "robust demand, new growth initiatives, and continued cost discipline." He noted that this quarter marked the first time in Uber's history where there was a GAAP operating profit and highlighted a 22% increase in trips.
Future Outlook
For the upcoming third quarter, Uber projects gross bookings between $34.0 billion and $35.0 billion and expects adjusted earnings before interest, taxes, depreciation, and amortization to range between $975 million and $1.03 billion.
Overall, Uber's second quarter results demonstrate their ability to meet and exceed expectations while experiencing substantial growth in their ride-hailing and delivery segments.
