Uber shares tumble despite outperforming revenue as its core operations continue to lose money – TechCrunch


The company reaffirmed its fourth-quarter adjusted earnings target, and moved to positive net earnings thanks to investments.

Today after Bell, the American passenger transport giant, Uber reported that second quarter financial results. The company’s numbers come a day after its national rival, Lyft, shared his own second quarter earnings.

In particular, while Lyft managed to generate positive adjusted EBITDA in the second quarter, Uber did not. However, Uber generated a positive net income of $ 1.14 billion in the quarter thanks to its investments in other companies such as Didi and Aurora Innovation.

From the top, Uber’s gross bookings totaled $ 21.9 billion in the second quarter, up 114% compared to the prior-year period. That gross platform spend resulted in $ 3.93 billion in revenue at Uber, up 105% from the company’s $ 1.91 billion results in the second quarter of 2020.

Its second-quarter performance was enough to keep Uber on track toward its pre-tax profitability target, and the company reiterated that it will achieve adjusted EBITDA profitability for the fourth quarter, according to its earnings release.

Analysts had expected the company to post revenue of $ 3.74 billion and earnings per share of – $ 0.51, per data. collected by Yahoo Finance. Uber shares fell 5.4% in after-hours trading, despite the company’s earnings per share exceeding analysts’ expectations.

Digging deeper into the company’s individual business operations, in terms of gross bookings, Uber’s travel business posted the strongest growth in the second quarter of 2021, growing 184% over its prior-year result of $ 8.84 billion. Delivery, a large chunk of the company’s gross reserves, grew 85% in the second quarter of 2021 to $ 12.91 billion compared to its comparable a year ago.

Uber earns less revenue per dollar from gross delivery bookings than it does on private travel, with its two businesses generating $ 1.96 billion and $ 1.62 billion in revenue, respectively, despite its huge spread in total consumer spending.

Freight, Uber’s smallest named division in terms of revenue, grew 64% to $ 348 million. Despite its small size, Uber has been expanding the division and making strategic acquisitions and partnerships as a means of helping the segment break even on an adjusted EBITDA basis by the end of 2022.

Last month, Uber Freight acquired Transplace for roughly $ 2.25 billion from private equity group TPG Capital. The deal involved $ 750 million in Uber stock and the rest in cash.

Uber’s two key businesses were not profitable together, and the company’s transportation and delivery businesses failed to save the company from negative adjusted earnings. However, Uber’s travel business managed to post $ 179 million in positive adjusted EBITDA on its own, below the company’s first-quarter 2021 result, while the company’s delivery business posted another quarter of adjusted earnings. negative, generating an adjusted EBITDA of $ 161 million.

Remember that Uber’s Adjusted Rideshare EBITDA pales in comparison to the company’s unallocated expenses; Uber’s Adjusted EBITDA for the second quarter of 2021 reached – $ 509 million, an improvement of 39% compared to the prior year period, but is still a long way from breakeven.

But Uber’s quarter had a climax to share in the form of other revenue. Uber’s operating loss of $ 1.19 billion was more than enhanced by the company making $ 1.93 billion in non-operating income. That was derived primarily from $ 1.91 billion in unrealized gains on “debt and equity securities,” including “an unrealized gain of $ 1.4 billion on [its] Didi and an unrealized gain of $ 471 million on [its] Aurora Investments Recognized in Q2 2021 “.

I did went public in the second quarter.

In terms of geographic results, Uber’s fastest recovery came in the APAC region, where revenue soared 227% from $ 217 million in the prior year quarter to $ 709 million in the most recent three-month period. of the company. EMEA ranked second, in terms of growth, expanding gross revenue by 159% from $ 358 million to $ 929 million over the same time period. The United States and Canada posted 76% revenue growth from $ 1.13 billion to $ 1.98 billion, and Latin America posted a more modest 44% rebound in the quarter.


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