Just one day after domestic rival Lyft disclosed its adjusted profit earnings, ride-hailing giant Uber Technologies Inc. has posted its second-quarter financial reports. While the company has managed to show high revenues, its profits have failed to match analysts’ expectations.
Uber did post a positive net income of USD 1.14 billion, which was mainly possible due to its investments in other companies like Aurora Innovation and Didi.
The vehicle-for-hire company had gross bookings totaling USD 21.9 billion, up by 114% as compared to the same period last year. Its gross platform spends resulted in USD 3.93 billion in revenues, an increase of 105% from the company’s USD 1.91 billion revenue during Q2 of 2020.
Analysts had expected quarterly revenues to reach USD 3.74 billion with -USD 0.51 earnings per share. While Uber exceeded market expectations in terms of revenue, the company did not have the same success with its adjusted EBITDA.
Experts had predicted a lower margin of adjusted EBITDA loss at -USD 324.5 million. However, the actual figure was significantly higher at USD 509 million.
As a result, share prices plunged by 8% in after-hours trading, and saw a subsequent recovery, but were still trading nearly 6% lower.
Uber’s ride business witnessed the highest growth during the second quarter in terms of gross bookings, recording a 184% jump to USD 8.84 billion, as compared to previous year figures. Delivery, which forms a larger part of gross bookings at Uber, grew by 85% to reach USD 12.91 billion.
Moreover, freight, the company’s smallest division in revenue terms, surged 64%, to reach USD 348 million. Uber has been focusing on making strategic acquisitions and partnerships and expanding the division to enable it to break even on an adjusted EBITDA basis by the end of 2022.
Notably, Uber’s quarterly results had a highlight in the form of other income. The company’s operating loss of USD 1.19 billion was more than covered by earnings of USD 1.93 billion in non-operating income.
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