Uber Results Beat in Q2, but Losses Mount on Costs to Revive Driver Activity

© Reuters.

By Yasin Ebrahim – Uber (NYSE:) Technologies reported Wednesday second quarter that topped analysts’ forecasts, though a ramp-up in spending to revive driver availability, particularly in the US, weighed on performance in its core ridesharing business.

Uber shares lost 5.41% in after-hours trade following the report.

Uber announced earnings per share of 58 cents on revenue of $3.93 billion. Analysts polled by anticipated a loss per share of 54 cents on revenue of $3.74 billion.

The company reported an adjusted earnings before interest, taxes, depreciation and amortization loss of $509 million, down $150 million on the quarter but up $328 million year-on-year. The wider losses were driven by increased by “elevated investments” as the company sought to incentivize drivers to return after the pandemic hurt demand.

Gross bookings rose 114% to $12.9 billion, beating consensus estimates for $20.93 billion, with mobility up 84%, and delivery up 85%.

Looking ahead, the company said that it expected to reach adjusted EBITDA by Q4 following the drag from investments.

“We successfully made large investments in Q2 to improve marketplace balance, and we are now well positioned to reach Adjusted EBITDA profitability by Q4,” said Nelson Chai, CFO. “As we make progress towards that important milestone, we expect our Adjusted EBITDA loss in Q3 to improve to less than $100 million in addition to record Gross Bookings between $22 and $24 billion.”

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