Uber posts positive cash flow for the first time in a bumper quarter

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Aug 2 (Reuters) – Uber Technologies Inc (UBER.N) reported positive quarterly cash flow for the first time on Tuesday and expects third-quarter operating profit to beat estimates as more people count on its services for transportation and food ordering.

Shares of the company jumped 15% to $28.2 and helped lift shares of Lyft Inc (LYFT.O) 11% and DoorDash (DASH.N) 4%.

Uber generated free cash flow of $382 million in the second quarter, beating analysts’ expectations of $263.2 million, as travel surged above pre-pandemic levels, boosted by office reopenings and a increase in travel demand.

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The company also added more drivers and delivery agents to its fleet during the quarter, bringing their total number to a record high of around 5 million and allaying fears that soaring gasoline prices would deter them. to register.

“We have a very strong flow of new drivers who are signing up and making money,” said chief executive Dara Khosrowshahi, adding that more than 70% of new drivers have chosen to join Uber to manage the coup. inflation and rising costs. of life.

In its delivery business, which includes Uber Eats, growth slowed from the previous quarter, but the company expects ordering will become a habit for consumers.

Revenue from Uber’s delivery segment rose 37% to $2.69 billion, while revenue from ride-sharing business jumped 120% to $3.55 billion in the quarter ended May 30. June, exceeding Wall Street expectations.

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“These results are particularly impressive given the growing list of macro and micro issues plaguing Uber and Lyft,” said MKM Partners analyst Rohit Kulkarni.

Lyft is expected to report results Thursday.

Uber’s net loss was $2.6 billion, largely impacted by investments in companies such as India’s Zomato (ZOMT.NS). He is likely to sell his stake in the Indian food delivery company on Wednesday, a source told Reuters. Read more

Uber’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $364 million, beating estimates of $257.89 million, according to IBES data from Refinitiv.

It now expects adjusted EBITDA of $440-470 million, also above estimates of $383.95 million.

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Reporting by Nivedita Balu in Bengaluru; Editing by Anil D’Silva

Our standards: The Thomson Reuters Trust Principles.

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