Technology · August 2, 2022

Uber earnings Q2 2022

Dara Khosrowshahi, Chief Executive Officer of Uber Technologies Inc., speaks during an interview in San Francisco on Tuesday, December 14, 2021.

David Paul Morris | Bloomberg | Getty Images

Uber on Tuesday reported a loss for the second quarter, but it beat analysts’ revenue estimates and reported free cash flow of $382 million for the first time ever.

Uber’s shares are up 13% in premarket trading.

Here are the key numbers:

  • Loss per share: $1.33, not comparable to estimates.
  • Revenue: $8.07 billion vs. $7.39 billion estimated according to a Refinitiv poll of analysts.

The company reported a net loss of $2.6 billion for the second quarter, of which $1.7 billion was due to investments and a revaluation of shares in Aurora, Grab and Zomato.

But CEO Dara Khosrowshahi said in a prepared statement that Uber continues to benefit from an increase in on-demand transportation and a shift in spending from retail to services.

The company reported Adjusted EBITDA of $364 million, ahead of the range of $240 million to $270 million it provided in the first quarter. Gross bookings of $29.1 billion grew 33% year over year and were in line with guidance of $28.5 billion to $29.5 billion.

Here’s how Uber’s largest business segments performed in the second quarter of 2022:

Mobility (gross bookings): $13.4 billion, up 57% at constant currency from a year ago.

Delivery (gross postings): $13.9 billion, up 12% at constant currency from a year ago.

Uber has relied heavily on growing its Eats delivery business during the pandemic, but its mobility segment outperformed Eats’ revenue in the first quarter as riders began making more trips.

This trend continued in the second quarter. Its mobility segment posted revenue of $3.55 billion compared to $2.69 billion for delivery. Uber’s freight segment made $1.83 billion in revenue for the quarter. Revenue does not include the additional taxes, tolls and fees from gross bookings.

Despite the increase in fuel prices during the quarter, Uber said more drivers and couriers are making money than before the pandemic, and it has seen an acceleration in the growth of active and new drivers.

“Rider engagement hit another post-pandemic high in the second quarter and we saw an acceleration in both active and new driver growth during the quarter,” Khosrowshahi said in prepared remarks. ÔÇťAgainst the backdrop of higher global gas prices, this is a clear validation of the value drivers that Uber continues to see. As a result, surge and wait times in July are near their lowest levels in a year in several markets, including the US. Our position in the mobility category is at or near multi-year highs in the US, Canada, Brazil and Australia. “

Uber recently announced new changes that could help it continue to attract and retain drivers. For example, they can select the trips they want and see how much they earn before accepting a trip.

The company reported 1.87 billion rides on the platform in the quarter, up 9% from the most recent quarter and up 24% year over year. Monthly active platform users reached 122 million, up 21% year-on-year. Drivers and couriers earned a combined $10.8 billion in the quarter, up 37% year over year.

Speaking to investors, Khosrowshahi said new driver registrations were up 76% year-on-year. He said over 70% of drivers said inflation and the cost of living played a role in their decision to use Uber.

Uber also benefited from the revival in travel. Gross bookings at airports would have reached pre-pandemic levels at 15% of total gross bookings for mobility, up 139% year-on-year.

For the third quarter, Uber expects gross bookings to be between $29 billion and $30 billion and Adjusted EBITDA to be between $440 million and $470 million.

Khosrowshahi will be featured on CNBC’s “Squawk on the Street” at 9 p.m. ET.