Uber exceeded Wall Street’s estimates for second-quarter revenue and core profit on Tuesday. This was due to steady demand for its ride-sharing and food-delivery services, which led to a 5% increase in the company’s shares before the bell. As more people return to offices and venture out of their homes, there has been an increase in demand for ride-sharing. This has positively impacted companies like Uber and rival Lyft.
Uber CEO Dara Khosrowshahi mentioned that the second quarter was outstanding in terms of mobility, with consistent growth across various use cases. The company saw strength in Latin America and the Asia-Pacific region, particularly in countries like Brazil, Australia, and India. Improvements in airport rides and initiatives such as Uber Shuttle, discounted subscriptions for students, and pre-scheduled shared rides also played a role in boosting bookings.
In the second quarter ending June, Uber’s revenue rose 16% to $10.70 billion, while gross bookings increased 19% to $39.95 billion. This exceeded analysts’ expectations of $10.57 billion and $39.68 billion, respectively. Uber reported adjusted core earnings of $1.60 billion, surpassing estimates of $1.51 billion. Revenue from the ride-sharing segment, the company’s largest, rose 25% to $6.13 billion, which was above the expected $5.94 billion.
Meanwhile, the delivery business reported revenue of $3.29 billion, slightly below estimates of $3.32 billion. In response to concerns regarding consumer spending on restaurants and delivery, Khosrowshahi stated that they are currently not seeing any impact, further noting that the company’s focus on groceries through partnerships with Instacart and Costco Wholesale was boosting deliveries. Uber forecast third-quarter gross bookings between $40.25 billion and $41.75 billion, with adjusted core earnings expected to be between $1.58 billion and $1.68 billion. These figures fall slightly below analysts’ estimates.\