Uber Stock Rises as the Revenue Is Higher than Expected

Uber Stock Rises!

After the company released its Q2 2022 results, Uber stock soared in pre-market trading. UBER stock was traded up to $27.15 per share at the beginning of the month. It was more than 10% higher than its last closing price.

After the earnings report, the company’s share price rose by 18.90%. Before its earnings release, the company’s share price was down around 44% year to date, significantly reducing its losses.

Key Points from Uber Earnings Report

  • 1.87 billion trips have been taken overall on the Uber platform, up 24% annually and 9% quarterly.
  • Monthly Active Platform Consumers (MAPCs) are 122 million,  a 24% annual increase and a 9% quarterly increase.
  • Gross bookings increased by $13.4 billion, a 24% increase compared to the previous year.
  • Delivery gross bookings were $13.9 billion, a 12% increase from the previous year.
  • Q2 revenue is $8.1 billion overall, increased by 111% yearly.
  • Q2 Quarterly net loss is $2.6 billion.

The company’s gross bookings of $29.1 billion exceeded the $28.8 billion expert consensus. These bookings were split between gross mobility bookings worth $13.4 billion, up 55% from the previous year, and gross delivery reservations for $13.9 billion, up 7% from the previous year.

The pandemic caused tremendous growth for Uber’s delivery business. However, its mobility segment experienced a massive decline due to lockdown regimes. However, the mobility sector of the company is experiencing a revival as the world continues to open up.

For the first time during this quarter, Uber generated a positive cash flow for the entire accounting quarter. After spending $25 billion since its establishment 13 years ago, the company reported a free cash flow of $382 million. This free cash flow exceeds the $109 million analyst consensus. Investors are turning away from loss-making stocks as quantitative easing comes close, demonstrating the company’s potential for profitability.

Uber’s Q2 results and Stock Prices

Uber’s positive Q2 reports saw its share price jump by almost 19% by the end of trading last week. This was primarily because the company achieved higher-than-expected revenue and positive free cash flow for the first time. Positive cash flow news covered the disappointing net loss, primarily recorded on paper. This has boosted investor confidence in the company’s ability to become self-sustaining and efficiently manage money in the future to improve profitability.

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