Uber gains momentum in 2nd quarter, investors look past loss

view original post

Uber continued to gain momentum in the second quarter with Americans heading back to offices and traveling more as anxiety over COVID-19 eases.

Passengers took a total of 1.87 billion trips on Uber during the spring and early summer, a 24% increase from the same time last year.

Revenue at the San Francisco company more than doubled to $8.07 billion, bolstered by a change in the business model for its UK mobility business and the acquisition of Transplace by Uber Freight.

This beat the $7.36 billion that analysts polled by FactSet predicted.

Gross bookings surged 33% to $29.08 billion, an all-time high. Looking ahead, Uber Technologies Inc. foresees third-quarter gross bookings between $29 billion and $30 billion.

Shares jumped more than 10% before the market open on Tuesday.

Uber has regained a lot of ground since the start of the COVID-19 pandemic in March 2020 triggered government lockdowns that kept most people at home, limiting the need for anyone to need a ride from Uber.

ADVERTISEMENT

The company pivoted at the time by building up a then-nascent food-delivery division, although that segment isn’t growing as rapidly as last year now that more people are eating in restaurants again.

Uber lost $2.6 billion, or $1.33 per share, for the three months ended June 30. Wall Street expected a loss of 27 cents per share.