Uber reported a net income of $1.1 billion in the second quarter beating all the estimations. However, the company’s shares dipped more than 4% in after-hours trading. The unexpected recorded profit is mainly due to the gains of $471 million in Aurora and $1.4 billion in Didi. However, the company recorded an operating loss of $1.19 billion as the shares of Didi dropped by 37%.
The adjusted Earnings before Interest, Taxes, Depreciation & Amortization (EBITDA) loss of Uber was $504 million which is $150 million lower than the amount recorded last year. However, Nelson Chai, the CFO of the company has reaffirmed that they are expecting to reach profitability by the end of this year. As per him, the EBIDTA loss in Q3 is expected to reduce to less than $100 million. In addition to this, the gross booking is expected to be somewhere between $22 and $24 billion.
During the pandemic, traveling was reduced and people turned to food and goods deliveries. As a result of which, Uber’s Eat segment bolstered. As per the company, their delivery revenue has yet again outperformed their core ride-hailing business and has been recorded at $1.96 billion. Uber, in an update to shareholders, confirmed that the number of delivery merchants grew to more than 750,000 in the second quarter.
However, the company’s supply and demand imbalances have been a struggle. CEO Dara Khosrowshahi confirmed the call with the investors regarding the mismatch of prices and wait times of Uber. He said that the company has invested in drivers in Q2 and has made strong progress in this regard. The monthly active drivers and couriers in the US has increased by almost 420,000 within 4 months.
The unexpected figures have beaten the estimation of Wall Street guidance on top & bottom lines.
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