Uber has reported that its
revenue ticked up 14% last quarter, marking a slower
pace of growth than recent quarters when sales surged as riders
returned to pre-pandemic habits.
The
company on Tuesday reported revenue of $9.2 billion for the quarter ending in
June, a 14% increase from the same period last year, just missing Wall Street’s
estimates. The number of trips customers took were up 22% in the quarter.
The
company reported its first-ever unadjusted operating profit of $326 million. It
also posted record quarterly free cash flow of $1.1 billion.
“For most of our history,
‘profitable’ wasn’t the first thing that came up when you ask someone about
Uber,” CEO Dara Khosrowshahi said on a call with analysts Tuesday morning. “But
we knew they were wrong about Uber, as did many of our investors who backed us
over the years.”
Uber
also said gross bookings (the amount paid by customers) surged 16% year over
year to $33.6 billion. Trips during the quarter grew 22% to 2.3 billion, or
approximately 25 million trips per day on average.
On
the call, the chief executive touted “a new all-time high of $15.1 billion in
total earnings for drivers and couriers on the platform” that was seen last
quarter.
Uber also announced Tuesday
that Chief Financial Officer Nelson Chai will leave the company next January,
and a search for his replacement is underway.
“Nelson
has been a huge part of Uber’s transformation over the past five years,”
Khosrowshahi said on the analysts’ call. “I know that I speak for the entire
company that we’re grateful for everything he’s done to establish such a strong
foundation for a path forward.”
Shares
for Uber climbed by some 4% in pre-market trading Tuesday morning as the
company offered rosy guidance. Uber stock has roughly doubled since the start
of the year.
In a
note Tuesday morning, William Blair analyst Ralph Schackart touted how the
strong results this past quarter were “driven by continued execution, robust
engagement, and record audience levels using the platform.”
“Uber continues to drive
incremental profitability, demonstrating its ability to efficiently run the
broader business and drive positive results,” Schackart added.
Uber
has so far navigated its pandemic recovery far
better than its chief rival, Lyft. Lyft is set to report quarterly earnings
next week on Tuesday.
Source: CNN