Uber reports better-than-expected results as food delivery drives growth
Uber reported stronger-than-expected second quarter results on expansion in its core business and increased orders for food and trips via membership subscribers.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) at the NYSE-listed company grew by 71 per cent year-on-year to $1.6bn (£1.3bn) in the quarter ended June 30.
Monthly active consumers of Uber reached 156m in the quarter, with 2.8bn trips via the platform.
“Uber’s growth engine continues to hum, delivering our sixth consecutive quarter of trip growth above 20 per cent, alongside record profitability,” chief executive Dara Khosrowshahi said.
“The Uber consumer has never been stronger – more people are using the platform, and more frequently, than ever before,” the boss added.
Drivers and couriers earned an all-time high of $17.9bn (£14.1bn) over the quarter, Khosrowshahi added.
Revenue grew 16 per cent year on year to $10.7bn (£8.4bn) on a constant currency basis after swinging to a loss last quarter.
Despite the positive results, “business model changes” in some countries, which “classified certain sales and marketing costs as contra revenue”, negatively impacted revenue by around seven per cent in the second quarter.
Income from operations was $796m (£627m), up $470m (£370m) year-on-year and $624m (£492m) quarter on quarter, Uber said.
“Strong topline trends… demonstrate the durability of our growth and significant cash flow generation underlying our platform,” chief financial officer Prashanth Mahendra-Rajah said. “We started share repurchases against our inaugural authorization during the quarter as we continue to drive long-term shareholder return.”
Uber said it expected EBITDA to reach $1.6bn (£1.3bn) to $1.7bn (£1.3bn) in the third quarter, which is equal to growth of 45 per cent to 55 per cent year over year.
Last month, Uber became embroiled in a battle with HMRC over nearly £1bn in VAT payments, which it tried to recover through the courts.