August 18, 2022
Uber shares more than doubled as quarterly revenue

Uber continued to build momentum in the second quarter with Americans going back to offices and gross bookings hit an all-time high as concerns over COVID-19 eased.

Passengers took a total of 1.87 billion rides on Uber during the spring and early summer, a 24% increase from the same period last year. This averages out to about 21 million trips per day.

Monthly active platform subscribers climbed 21% from the prior-year period to 122 million.

The San Francisco company’s revenue more than doubled to $8.07 billion, fueled by a change in business model for its UK mobility business and the acquisition of Transplace by Uber Freight.

That surpassed the $7.36 billion analysts had predicted by FactSet.

The company, run by CEO Dara Khosrowshahi, had to navigate an extremely tight labor market, which has at times left drivers almost immediately left behind as it emerged from the pandemic.

Uber CEO Dara Khosrowshahi
Uber CEO Dara Khosrowshahi has reason to smile after a strong quarter.
Reuters

Dan Ives said, “Despite the rise in ride share prices across the US/Europe, clearly consumers are still turning to the Uber platform, especially in the form of travel, office shifts, and other post-pandemic The trends are poised to benefit in 2023 with Uber globally.” Which follows Uber to Wedbush.

Gross bookings rose 33% to $29.08 billion, an all-time high, and Uber predicts third-quarter gross bookings of between $29 billion and $30 billion.

Wall Street overlooked huge losses for the quarter, and shares jumped 15% to $28.25 on Tuesday.

Uber lost $2.6 billion, or $1.33 per share, for the three months ended June 30. This included a net headwind of $1.7 billion related to Uber’s equity investments, mostly from Aurora Innovation, Grab Holdings and the revaluation of its stakes in India’s food. Delivery company Zomato. The damage also included $470 million in stock-based compensation expenses.

Industry analysts had forecast a loss of only 27 cents per share.

Uber has gained a lot of ground since the start of the COVID-19 pandemic in March 2020, which triggered a government lockdown that kept most people at home.

The company pivoted at that time by creating the then-nascent food-delivery division, though the segment isn’t growing as fast as last year, with a lot of people returning to restaurants.

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