Business
Stocks Drop After Uber Misses Revenue Despite First Profit
(CTN News) – As Uber reported disappointing second-quarter results on Tuesday, its shares fell more than 5%, but it provided rosy guidance for the remainder of the year.
As a result, the company achieved the following:
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According to Refinitiv, earnings per share were 18 cents compared to a 1 cent loss expected by analysts.
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Analysts had expected $9.33 billion in revenue, but Refinitiv reported $9.23 billion.
The company’s revenue increased by 14% over the same quarter last year.
The company reported a net income of $394 million, or 18 cents per share, compared to a net loss of $2.6 billion, or $1.33 per share, in the same quarter last year. A net benefit of $386 million was realized from Uber’s equity investments.
According to Khosrowshahi, the achievement was achieved through a combination of disciplined execution, a record audience, and strong engagement.
During the company’s quarterly investor call on Tuesday, Khosrowshahi announced that CFO Nelson Chai would depart in January 2024. In 2019, Chai served as Uber’s CFO and was instrumental in the company’s IPO. A search has been launched for his successor by Uber.
Uber reported adjusted EBITDA of $916 million, an increase of 152% from last year. Over the past year, gross bookings increased by 16% to $33.6 billion.
Uber expects to report gross bookings of $34 billion to $35 billion and adjusted EBITDA of $975 million to $1.025 billion in the third quarter of 2023, according to StreetAccount.
The following is a summary of Uber’s largest business segments:
Mobility (gross bookings):Â $16.73 billion, up 25% from the previous year
Delivery (gross bookings):Â $15.60 billion, an increase of 12% from last year
Uber’s mobility segment reported revenue of $4.89 billion, while its delivery segment reported revenues of $3.06 billion.
 The company’s freight division recorded sales of $1.28 billion during the quarter, down from $1.83 billion reported in the same quarter last year.
In an interview with, Khosrowshahi pointed out that freight continues to be a challenge for Uber, since consumers are spending more on services rather than shipping goods.
Ultimately, Uber’s services spend benefits the company’s mobility and delivery businesses, but it is adjusting its freight costs accordingly.
As of the second quarter of 2018, platform had 137 million monthly active users, up 12% from the same time last year, according to the company. During the period, the platform handled 2.3 billion trips over the course of the year, an increase of 22% over the previous year.
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