Uber reported positive quarterly cash flow for the first time ever and forecast operating profit above analyst estimates in Q3
Uber Technologies announced financial results for the quarter ended June 30, 2022. Its gross bookings reached an all-time high of $29.1 billion, up 33% year-over-year, whereas quarterly cash flow turned positive for the first time in corporate history. Upon the announcemnet, Uber shares, which have lost more than 40% this year, surged 15% to $28.41 in premarket trading.
The ride-hailing service generated free cash flow of $382 million in Q2, surpassing analysts’ expectations of $263.2 million, as trips exceeded pre-pandemic levels. The company also maintains positive outlook for the next quarter, boosted by the reopening of offices and a surge in travel demand.
Not only has the number of trips significantly increased but also the number of drivers and delivery agents on Uber platform rose 31% to an all-time high of almost 5 million. The statistics negated all the concerns that soaring gas prices would prevent drivers from signing up with the company.
Although delivery business growth was slowing, Uber expected ordering in to become the standard for consumers as it continues to add new partners.
The delivery segment’s revenue rose 37% to $2.69 billion, whereas profits of ride-share business surged 120% to $3.55 billion in the second quarter. Both results exceeded analyst expectations.
Adjusted EBITDA was $364 million, surpassing estimates of $257.89 million. Moreover, the company expects adjusted EBITDA to rise to $440 – $470 million in Q3, well above analysts’ forecast of $383.95 million.