Uber exceeded Wall Street estimates for second-quarter revenue and core profit, driven by steady demand for its ride-sharing and food-delivery services. The company’s shares rose 5% in pre-market trading following the announcement.
The return to offices and increased social activities have boosted ride-sharing demand in recent months, benefiting companies like Uber and its competitor, Lyft. Uber CEO Dara Khosrowshahi highlighted that the second quarter saw consistent growth across various use cases and geographic regions, particularly in Latin America and the Asia-Pacific, with notable strength in Brazil, Australia, and India.
Key growth drivers included improvements in airport rides and initiatives such as Uber Shuttle, discounted student subscriptions and pre-scheduled shared rides. Uber’s revenue for the quarter rose 16% to $10.70 billion, surpassing analysts’ expectations of $10.57 billion. Gross bookings increased 19% to $39.95 billion, above the anticipated $39.68 billion.
On an adjusted basis, Uber reported core earnings of $1.60 billion, beating the estimated $1.51 billion. Revenue from Uber’s ride-sharing segment, its largest, rose 25% to $6.13 billion, exceeding the forecasted $5.94 billion. The delivery business reported revenue of $3.29 billion, slightly below estimates of $3.32 billion.
Despite concerns about consumer spending on restaurants and delivery, Khosrowshahi noted that Uber has not seen any negative impact. An increased focus on groceries has bolstered the company’s delivery segment through expanded partnerships with Instacart and Costco Wholesale.
For the third quarter, Uber forecasts gross bookings between $40.25 billion and $41.75 billion, with the midpoint slightly below analysts’ estimates of $41.26 billion. The company expects adjusted core earnings between $1.58 billion and $1.68 billion, compared to the projected $1.62 billion.
Lyft is scheduled to report its quarterly earnings on Wednesday, which will provide further insights into the ride-sharing industry’s competitive landscape.
