Uber posts stronger operating income as quarterly revenue doubles
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Uber Technologies Inc.’s revenue more than doubled last quarter and boosted its operating performance amid high inflation and worries about the weakening economy.
The ride-hailing giant Tuesday said revenue grew 105% to $8.07 billion for the three months through June. The company also posted adjusted earnings—a figure that excludes some expenses—of $364 million, its strongest ever. Both figures beat Wall Street expectations.
Revenue was partly boosted by high ride prices, triggered by a yearlong driver shortage in the U.S. The company also changed how it accounts for its rides operations in the U.K., giving a boost to revenue from the prior year.
Tuesday’s results signaled that the company’s efforts to trim its losses while continuing to grow were working, though it still posted a $2.6 billion net loss, driven in large part by accounting adjustments to reflect the falling value of its stakes in Chinese ride-hailing giant Didi Global Inc., Southeast Asia’s Grab Holdings Inc. and Aurora Innovation Inc.
The company said it generated free cash flow of $382 million in the quarter.
|UBER||UBER TECHNOLOGIES INC.||24.60||+1.15||+4.90%|
Uber said that the pace of improvement in the underlying business may moderate. Activity on the platform so far this quarter suggests bookings for its delivery business in the current period will be roughly flat from the second quarter, it said. Bookings include Uber’s revenue and the money that goes to others, such as drivers or restaurants.
The company forecast the total value of bookings on the platform to be between $29 billion and $30 billion in the September quarter, in line with Wall Street’s forecast of $30 billion, and broadly on par with the $29.1 billion in the June quarter.
One of its most closely watched financial metrics, adjusted earnings before interest, taxes, depreciation and amortization, should come in between $440 million and $470 million in the current quarter, the company said. That is a smaller improvement than in the second quarter, but ahead of the $383 million Wall Street has been projecting. This metric strips out some expenses such as asset write-downs and stock-based compensation that executives consider to be outside a company’s core operations.