Uber share price rose 4.9% in premarket trading on the NYSE after the company reported better-than-expected second-quarter results and forecasted third-quarter bookings above Wall Street estimates on Wednesday. The ride-hailing and delivery services company is benefiting from increased adoption of its paid loyalty program.
Uber also expanded its share repurchase authorization by $20 billion, with $3 billion remaining from its previous buyback program.
The company reported a profit of $1.36 billion, or 63 cents per share, for the quarter ended June 30, compared with $1.02 billion, or 47 cents per share, a year earlier. Revenue rose 18% to $12.65 billion, beating analyst estimates of $12.47 billion.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached a record $2.12 billion, surpassing forecasts of $2.09 billion. Total trips increased 18% to 3.3 billion, while monthly active platform consumers grew 15%. Gross bookings rose 17% to $46.8 billion.
“Our platform strategy is working, with record audience, frequency, and profitability across Mobility and Delivery,” said Uber CEO Dara Khosrowshahi. “But we’re still only beginning to unlock the platform’s full potential, now with 20 autonomous partners around the world.”
Uber benefited from increased weekday commuter demand in the June quarter, with riders using its “Price Lock Pass” to make an average of six additional monthly commute trips. The subscription program, which offers fixed pricing on selected routes for $2.99 per month, is part of Uber’s strategy to drive habitual usage and is now available in over 10 major U.S. and Brazilian cities.
Uber’s Q3 forecast beats Street estimates
For the current third quarter, Uber anticipates gross bookings of $48.25 billion to $49.75 billion, exceeding Wall Street’s projection of $47.6 billion (Bloomberg estimates). The company expects adjusted core profit (EBITDA) of $2.19 billion to $2.29 billion, with the midpoint above analysts’ average estimate of $2.22 billion.
Although Uber does not own its own robotaxi technology, it is leveraging partnerships to strengthen its mobility segment in the coming years. The company now has over 20 collaborations in the self-driving technology space, including its latest tie-up with electric vehicle maker Lucid and startup Nuro.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
