Shares of Uber (NYSE: UBER) soared on Tuesday after the ride-sharing business reported results that topped analyst expectations.
How Did Uber Perform in Q2?
Uber reported it managed to generate $382 million in free cash flow, marking the first time ever on Tuesday, despite reporting a second-quarter loss.
Uber reported revenue of $8.07 billion, topping the consensus estimate of $7.39 billion, according to Refinitiv, but did manage to record a $1.33 loss per share for the quarter. The business did report a $2.6 billion net loss for the quarter, but $1.7 billion was ascribed to investments and a revaluation of holdings in Aurora, Grab, and Zomato.
Uber continues to profit from rising on-demand travel demand and a change in consumer spending from goods to services, the company CEO Dara Khosrowshahi said in a prepared statement.
In contrast to the $240 million to $270 million range it offered in the first quarter, the company generated an 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% year-over-year.
Uber’s mobility and delivery services grew in comparison to last year, but lately, the mobility department has been doing significantly better. Gross bookings for the delivery service came in at $13.9 billion, a 12% increase from a year ago while the mobility service generated $13.4 billion, up 57% compared to the same period last year.
This comes as no surprise since Uber mainly relied on the expansion of its Eats delivery company during the pandemic, 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. The company’s mobility sector brought in $3.55 billion, topping the delivery’s $2.69 billion in sales. For the quarter, Uber’s freight division generated $1.83 billion in revenue, excluding the additional taxes, tolls, and fees from gross bookings.
Uber anticipates gross bookings between $29 billion and $30 billion for the third quarter and adjusted EBITDA between $440 million and $470 million.
Focus on Supply in Mobility
Uber also 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.
“Driver engagement reached another post-pandemic high in Q2, and we saw an acceleration in both active and new driver growth in the quarter,” Dara Khosrowshahi said.
“Against the backdrop of elevated gas prices globally, this is a resounding endorsement of the value drivers continue to see in Uber,” he added.
Uber just made some updates that might help it retain and continue to draw in drivers. For instance, individuals will be able to select the vacations they desire and determine their earnings before accepting a trip.
As many as 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. The number of monthly active platform users also 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 rise in travel demand benefited Uber as well. Airport gross bookings, which account for 15% of all gross reservations for mobility, have increased by 139% year over year.
Summary
Uber shares are soaring this week after the mobility and delivery company managed to record its first-ever positive cash flow quarter.
