Uber lifts on better-than-expected second quarter earnings
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The news: Rideshare giant Uber has returned to profitability and bested Wall Street estimates on the back of strong demand for its ride-sharing and food-delivery services.
The numbers: Uber's revenue rose 16% to USD10.70 billion ($16.4 billion) in the second quarter ending June while gross bookings increased 19% to USD39.95 billion, both numbers slightly higher than analysts had expected. It also posted a better-than-expected profit of USD1.02 billion. That sent the company’s shares more than 10% higher in New York trading.
The context: With more people returning to offices and stepping out of their homes, ride-sharing demand has got a boost in the past several months, benefiting companies such as Uber and rival Lyft.
Revenue from the company's ride-sharing segment, its largest, rose 25% to USD6.13 billion, while Uber's delivery business reported revenue of USD3.29 billion.
Chief executive Dara Khosrowshahi said a greater push on groceries through expanded partnerships with Instacart and Costco Wholesale was boosting deliveries, adding that there have been some concerns about consumer spending on restaurants and delivery, but the company has not seen any impact yet.
The company forecast third-quarter gross bookings — which include its mobility, delivery and freight segments — between USD40.25 billion and USD41.75 billion, compared to analysts' estimates of USD41.26 billion.
What they said: "Mobility had a standout second quarter ... growth was consistent across use cases and geographic strength was led by LatAm and APAC, in particular Brazil, Australia and India," Khosrowshahi said.
