Uber reports revenue, profitability ahead of expectations

(Sharecast News) - Uber reported strong second-quarter results on Wednesday, with revenue and profitability exceeding expectations and prompting the company to authorize a $20bn share repurchase program - its largest to date. Revenue for the quarter ended 30 June 30 rose 18% year-on-year to $12.7bn, slightly ahead of analyst estimates.

Gross bookings, which include rides, deliveries, and associated services, climbed 17% to $46.8bn.

Uber's net income increased to $1.4bn, or 63 cents per share, from $1.02bn a year earlier.

Adjusted EBITDA, a key measure of profitability, reached a record $2.1bn - beating forecasts and representing a 35% increase year-on-year.

CEO Dara Khosrowshahi highlighted the continued strength of Uber's dual-platform model, noting growth in both mobility and delivery.

"Our platform strategy is working, with record audience, frequency, and profitability," he said, adding that the company was now partnered with 20 autonomous mobility firms globally as it accelerated investment in AI-driven transport services.

Uber had already started offering autonomous rides in 12 cities via collaborations with companies like Waymo, Apollo Go, and Nuro.

Ride-hailing bookings rose 18% to $23.8bn, slightly below analyst expectations, but were offset by a stronger showing in delivery, which grew 20% to $21.7bn.

Uber also reported 3.3 billion trips during the quarter, up 18%, while its monthly active platform users grew 15% to 180 million.

About 12% of annualized delivery bookings - equivalent to $10bn - now came via the Eats tab in the Uber app, a sign of growing cross-platform engagement.

Membership in Uber One, the company's subscription program, surged 60% to over 36 million, now accounting for 40% of gross bookings.

CFO Prashanth Mahendra-Rajah emphasised the company's growing cash flow, with free cash flow hitting an all-time high of $8.5bn over the past 12 months.

Uber ended the quarter with $7.4bn in unrestricted cash and short-term investments.

He also noted Uber could monetise some of its $8.7bn in equity stakes to fund further autonomous vehicle initiatives.

Looking ahead, Uber forecasted third-quarter gross bookings of $48.25bn to $49.75bn, outpacing Wall Street's expectations and representing up to 21% year-on-year growth.

Adjusted EBITDA was projected to reach between $2.19bn and $2.29bn, up to 36% higher than the same period last year.

At 0957 EDT (1457 BST), shares in Uber Technologies were down 1.97% in New York at $87.71.

Reporting by Josh White for Sharecast.com.