Uber's stock declined on Tuesday following the release of its second quarter figures that failed to meet experts' revenue estimations. However, the business's outlook was more positive. Khosrowshahi announced during the quarterly conference call with shareholders that CFO Nelson Chai will step down in January 2024. According to a statement made by the CEO, two significant achievements were achieved in the quarter; the first being its first billion dollars of free cash flow and its first GAAP operating profit.
Shares of Uber declined by more than 5% on Tuesday, as the company revealed second-quarter results that undershot analysts' projections for revenue. Nevertheless, the ride-hailing business offered a hopeful outlook. Uber stated that it achieved two main goals in the quarter, recording its first quarter of over $1 billion in free cash flow, and its first GAAP operating profit. In addition, CEO Dara Khosrowshahi stated that the company targets to remain profitable in every quarter going forward. On the financials side, the company declared earnings-per-share of 18 cents, as opposed to the 1 cent loss predicted by Refinitiv. The revenue climbed 14% from the same quarter of the year prior to $9.23 billion, a bit lower than the $9.33 billion anticipated by Refinitiv. Notably, Uber secured net income of $394 million, or 18 cents per share, compared to a net loss of $2.6 billion, or $1.33 per share, for the same quarter a year ago. This comprised a $386 million net advantage from revaluations of Uber's equity investments. By business section, Mobility gross bookings hit $16.73 billion, rising 25% year-over-year, while Delivery gross bookings achieved $15.60 billion, growing 12% year-over-year. Uber's Mobility section reported revenues of $4.89 billion, with Delivery's at $3.06 billion. However, the company's freight business booked $1.28 billion in sales, a decrease from the $1.83 billion for the same quarter the year before. In addition to this, Uber's monthly active platform customers came to 137 million for the second quarter, up 12% year-over-year, with 2.3 billion trips completed during the period, a 22% year-over-year increase. Finally, the business projects to report gross bookings between $34 billion and $35 billion and adjusted EBITDA of $975 million to $1.025 billion in the third quarter of 2023, surpassing analysts' expectations. Uber announced that CFO Nelson Chai will be leaving the company in January 2024, with the firm commencing a search for his successor.
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