A ride-hailing giant, Uber beat estimates on the top and bottom line. It turned an unexpected one-time profit during the Q2 of 2021. Shares of Uber declined by more than 4% in after-hours trading.
Analysts surveyed by Refinitiv expected a loss of 51 cents in earnings per share, while the firm posted earnings per share of 58 cents.
Moreover, the revenue of the company was $3.93 billion vs. $3.75 billion anticipated.
Meanwhile, a ride-hailing company reported a net income of $1.1 billion for the second quarter of the year. Meanwhile, Uber’s operating loss was $1.19 billion.
The company’s adjusted EBITDA loss was $509 million. It fell $150 million from the previous quarter. However, it surged $328 million from last year.
Uber announced its anticipation to reach profitability on an adjusted EBITDA basis by the end of 2021.
According to Nelson Chai, CFO of Uber, the firm anticipates an Adjusted EBITDA loss in the third quarter to improve to less than $100 million.
Additionally, Uber’s Eats segment has supported the company to withstand many of the coronavirus hits. When individuals stopped travelling, they turned to food and goods deliveries. Uber announced its delivery business stayed strong even as COVID-19 restrictions eased around the world.
Uber added 30% more drivers in America from June to July.
Let’s see how Uber’s largest business segments performed in Q2 of the year.
Mobility (gross bookings) was $8.6 billion, up 184% from 2020. Meanwhile, Delivery (gross bookings) was $12.9 billion, up 85% from the previous year.
Delivery revenue has resumes outperforming its core business at $1.96 billion, compared with $1.62 billion. According to the firm, its number of delivery merchants increased to more than 750,000 in Q2.
According to Dara Khosrowshahi, Uber CEO, the firm invested in recovery by investing in drivers and made strong progress in Q2. Khosrowshahi reported that monthly active drivers and couriers in America rose by almost 420,000 from February to July. Meanwhile, a ride-hailing giant added 30% more drivers in the country from June to July.
The firm reported 1.51 billion trips on the platform. It is up 4% from Q1 and 105% from the year-ago quarter. Uber announced its drivers and couriers made an aggregate $7.9 billion during the second quarter.
Lyft, Uber’s biggest U.S. rival, also reported financial results this week. The firm reported its first quarterly adjusted EBITDA profit, recording $23.8 million. Significantly, it also beat Wall Street guidance on both the top and bottom lines.