Uber Stock Up As Q2 Beats Market, Sees Higher Q3 Earnings

(RTTNews) - Shares of Uber Technologies, Inc. were gaining more than 7 percent in the morning trading on the NYSE after the transportation company reported Tuesday higher second-quarter profit and revenues, both above market estimates, benefited by increased gross bookings. The company also issued third-quarter outlook, expecting strong growth in adjusted EBITDA and gross bookings.

Dara Khosrowshahi, CEO, said, "Uber's growth engine continues to hum, delivering our sixth consecutive quarter of trip growth above 20 percent, alongside record profitability. The Uber consumer has never been stronger--more people are using the platform, and more frequently, than ever before--while drivers and couriers earned a new all-time high of $17.9 billion over the quarter."

For the third quarter, the ride-hailing service provider expects adjusted EBITDA of $1.58 billion to $1.68 billion, which represents 45 percent to 54 percent growth from last year.

For the quarter, the company anticipates gross bookings of $40.25 billion to $41.75 billion, which represents 18 percent to 23 percent year-over-year growth on a constant currency basis.

In its second quarter, Uber reported that net income attributable to the company totaled $1.015 billion or $0.47 per share, up 158 percent from last year's $394 million or $0.18 per share.

Analysts on average had expected the company to earn $0.28 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Adjusted EBITDA of $1.6 billion climbed 71 percent from last year, and adjusted EBITDA margin improved to 3.9 percent from 2.7 percent a year ago.

The company's revenue for the quarter rose 15.9 percent to $10.70 billion from $9.23 billion last year. The Street was looking for revenues of $9.69 billion for the quarter.

Revenue grew 17 percent on a constant currency basis.

Combined Mobility and Delivery revenue grew 19 percent from last year to $9.4 billion on a reported basis, or 20 percent on a constant currency basis. The company noted that business model changes negatively impacted total revenue growth by 7 percentage points.

In the quarter, gross bookings grew 19 percent year-over-year to $40.0 billion, or 21 percent on a constant currency basis. Mobility Gross Bookings of $20.6 billion went up 23 percent from last year and Delivery Gross Bookings of $18.1 billion improved 16 percent.

Trips during the quarter grew 21 percent from the prior year to 2.8 billion, or approximately 30 million trips per day on average.

On the NYSE, Uber shares were gaining around 7.5 percent to trade at $62.85.

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