Uber Technologies (UBER) reported its first-ever quarterly operational profit, but shares fell as revenue fell short of expectations. The company posted a $326 million operating profit after losing $713 million the previous year. Net income was $394 million, or $0.18 per share, exceeding expectations. However, while revenue climbed by 14% to $9.23 billion, experts expected $9.34 billion. Price cuts by rival Lyft (LYFT), which diverted business away from Uber, harmed sales.
The number of rides taken by Uber drivers increased by 22% to 2.3 billion, or nearly 25 million each day
Gross bookings increased by 16%, with mobility gross bookings increasing by 25% and delivery gross bookings increasing by 12%. EBITDA margin, which is EBITDA as a percentage of gross bookings for Uber, reached an all-time high. A record $1.14 billion in free cash flow was also achieved. The number of rides taken by the company’s drivers increased by 22% to 2.3 billion, or nearly 25 million each day. Dara Khosrowshahi, CEO, commented, “Robust demand, new growth initiatives, and continued cost discipline resulted in an excellent quarter.”
Uber forecasted current-quarter revenue bookings of $34 billion to $35 billion, with the midpoint exceeding estimates. It expects EBITDA of $975 million to $1.03 billion, which is significantly higher than previous expectations. Shares of the company fell roughly 6% in intraday trading on Tuesday after hitting a two-year high on Monday.
