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Uber Reports Better-Than-Expected Orders in Second Quarter

Strategic Insights

— 1 min read

Uber Technologies Inc. reported better-than-expected orders in the second quarter, underscoring the continued strength in demand for rideshare and delivery services. The company's gross bookings, which includes ride hails, delivery orders, and driver and merchant earnings but not tips, grew 19 per cent to $39.95 billion in the three months ended June 30, beating analysts' forecasts of $39.7 billion. Uber's shares jumped as much as 7.3 per cent after trading opened in New York before paring back to 4.7 per cent. The company's strength in demand was driven by better-than-expected growth in its ridehailing business, particularly in Latin America and the Asia Pacific region.

Key Takeaways:

  • Uber's gross bookings grew 19 per cent to $39.95 billion in the second quarter, beating analysts' forecasts of $39.7 billion.
  • The company's ridehailing business saw a 23 per cent growth in gross bookings to $20.6 billion, driven by increased trips and driver engagement.
  • Uber had 7.4 million monthly drivers and couriers in the second quarter, with ridehailing hours per driver reaching an all-time high.
  • The company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were $1.57 billion, ahead of the $1.5 billion projected by analysts.
  • Uber forecast bookings of $40.25 billion to $41.75 billion for the current quarter, with a midpoint slightly below analyst expectations of $41.3 billion.
  • The company expects a headwind of over $400 million from a recent strengthening of the dollar against other currencies.
  • Uber has made progress in adding subscribers to its Uber One membership program and has exceeded its target of $1 billion revenue-run-rate in its nascent advertising business.

Statistics:

  • Gross bookings growth: 19% to $39.95 billion
  • Ridehailing business growth: 23% to $20.6 billion
  • Monthly drivers and couriers: 7.4 million
  • Ridehailing hours per driver: All-time high
  • Adjusted EBITDA: $1.57 billion
  • Forecast bookings: $40.25 billion to $41.75 billion
  • Analyst expectations: $41.3 billion
  • Currency headwind: Over $400 million
  • Revenue-run-rate: $1 billion

Sources:

  • Uber Technologies Inc.
  • Bloomberg
  • Bloomberg-compiled estimates
  • Bloomberg 59343599 CAPTION(S)

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