Uber beats expectations with strong second-quarter growth

6th Aug 2024 13:11

(Sharecast News) - Ride-hailing and delivery giant Uber Technologies reported a strong set of second-quarter results on Tuesday, surpassing Wall Street expectations and showing significant year-over-year growth across its key business segments.

The company's gross bookings reached $40bn, marking a 19% increase from the same period last year, or 21% on a constant currency basis.

It said the growth was driven by a strong performance in the mobility segment, where gross bookings surged 23% to $20.6bn.

Revenue for the quarter rose 16% year-on-year to $10.7bn, slightly exceeding analyst forecasts.

Uber's mobility and delivery segments combined generated $9.4bn in revenue, up 19% from the prior year.

Adjusted EBITDA increased 71% year-on-year to $1.6bn, reflecting a margin of 3.9% on gross bookings.

Uber said its operational performance also saw significant improvements, with income from operations reaching $796m - a substantial $470m increase from the prior year.

The company reported net income of $1.02bn, which included a $333m pre-tax gain from the revaluation of its equity investments.

It said it continued to generate strong cash flows, with operating cash flow amounting to $1.8bn and free cash flow reaching $1.7bn for the quarter.

Uber also repurchased $325m of its common shares in the period, under a previously-authorised program.

Looking ahead to the third quarter, Uber forecast gross bookings between $40.25bn and $41.75bn, reflecting 18% to 23% year-on-year growth on a constant currency basis.

The company expected adjusted EBITDA to range from $1.58bn to $1.68bn - a year-on-year increase of up to 54%.

"Uber's growth engine continues to hum, delivering our sixth consecutive quarter of trip growth above 20 percent, alongside record profitability," said chief executive officer Dara Khosrowshahi.

"The Uber consumer has never been stronger - more people are using the platform, and more frequently, than ever before - while drivers and couriers earned a new all-time high of $17.9bn over the quarter."

At 0814 EDT (1314 BST), shares in Uber Technologies were up 6.07% in premarket trading in New York, at $62.03.

They had closed down 0.86% on Monday, ahead of the results announcement, at $58.48.

Reporting by Josh White for Sharecast.com.