Uber Reports Surprise Positive Earnings in Latest Quarter


Uber Technologies Inc. has surprised investors with positive earnings in its latest quarter, suggesting that the ride-hailing giant could be entering a period of sustained profitability. The company reported a net income of $394 million, or 18 cents per share, for the second quarter, compared to a net loss of $2.6 billion, or $1.33 per share, in the same period last year. Analysts had predicted a loss of 1 cent per share.

This unexpected turn of events has excited analysts who now anticipate a string of profits moving forward, which could potentially pave the way for Uber’s inclusion in the S&P 500 index. As a result, Uber’s shares have experienced significant growth, rising approximately 4% during premarket trading on Tuesday and nearly doubling in value since the beginning of the year.

In terms of revenue, Uber’s earnings rose to $9.23 billion from $8.07 billion, slightly below analysts’ expectations of $9.34 billion. The company’s mobility business generated $4.89 billion in revenue, marking a 38% increase, while its delivery business saw a 14% increase to $3.06 billion. However, its freight business experienced a decline of 30% with revenue amounting to $1.28 billion.

Gross bookings, which reflect the total value of rides, delivery orders, and other transactions on Uber’s platform, reached $33.6 billion in comparison to $29.1 billion in the previous year, closely aligning with FactSet’s consensus estimate of $33.5 billion.

Looking ahead to the third quarter, Uber anticipates gross bookings between $34 billion and $35 billion, along with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the range of $975 million to $1.025 billion. The consensus forecast from FactSet predicted gross bookings of $34.1 billion and an adjusted EBITDA of $927 million.

Overall, Uber’s surprise positive earnings have generated optimism among investors, signifying a potential turning point for the company towards long-term profitability. This positive trend has the potential to secure Uber’s position as a prominent player in the market.

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