Uber’s revenue doubles, but adjusted loss weighs on inventory

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Uber Technologies Inc. said on Wednesday that it made a profit in the second quarter and that bookings and gross revenue doubled year over year, but investors still lowered its stock as part of it. ‘a prolonged negotiation.

Uber UBER,
-2.29%
shares fell 9% after-hours, after falling more than 2% in the regular session to close at $ 41.81.

Uber’s profit was largely due to its investments. Without them, the company lost over half a billion dollars in the quarter. The company also said it had 101 million monthly consumers of active platforms in the quarter, an 84% increase year-over-year, but well below analysts’ expectations of 108.9 million.

Gross bookings reached $ 21.9 billion, above analysts’ expectations of $ 21.25 billion. Mobility’s gross bookings reached $ 8.6 billion, beating expectations by $ 8.3 billion. Delivery continued to outperform groceries, with gross bookings reaching $ 12.9 billion, above the $ 12.6 billion expected by analysts. Revenue reached $ 3.93 billion, up from $ 1.91 billion in the quarter last year.

Uber reported second quarter net income of $ 1.1 billion, or 58 cents a share, largely due to unrealized gains on its investments in Didi Global Inc. DIDI,
-3.57%
and the autonomous car company Aurora. That compares to a loss of $ 1.8 billion, or $ 1.02 per share, over the period last year. Adjusted for restructuring, stock-based compensation and other costs, the company’s EBITDA loss was $ 509 million, an improvement from a year-over-year loss of $ 837 million but more significant than analysts’ expectations of $ 321.7 million.

Analysts polled by FactSet had forecast a loss of 52 cents a share on revenue of $ 3.76 billion.

Uber chief executive Dara Khosrowshahi highlighted the positives for the company during the earnings call. He said the company’s driver supply issue was going in the right direction – it added 30% more US drivers from June to July – so Uber is already removing the incentives, and demand for rides is ” back to almost normal “in some markets. .

CFO Nelson Chai said he expects Uber to achieve EBITDA profitability in the fourth quarter.

Uber shares have fallen 18% so far this year and have risen over 25% last year, while the S&P 500 SPX index,
-0.46%
has increased by over 17% since the start of the year and is almost 33% higher in the past 52 weeks.

The company posted earnings a day after Lyft’s results also showed continued resumption of the pandemic, but also lingering uncertainty.

See: Lyft stock sinks amid concerns over outlook, pandemic uncertainty and growth

See: Uber and Lyft drivers on strike for one day, say incomes have fallen despite driver shortage


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