Uber Technologies, Inc. (NYSE:UBER)
Delivery operations of Uber Technologies, Inc. (NYSE:UBER) are thriving, and the Mobility operations are on the rebound, both of which are good news for the company.
The company’s second-quarter 2022 loss per share was $1.33, significantly worse than the Zacks Consensus Estimate of a loss of 25 cents per share. It had a profit of 58 cents per share in the second quarter of 2021.
The $8.073 billion revenue also surpassed the $7.434.5 billion Zacks Consensus Estimate by a wide margin. Revenue increased by over 100% year over year due to the integration of Transplace into Uber Freight and a shift in strategy for the UK Mobility division.
What’s Going On With Uber Technologies?
It’s promising to see Uber Technologies, Inc. taking steps to increase its Delivery capacity in response to the uptick in demand.
Despite the global flu epidemic, the number of online orders placed through Uber’s Delivery service has increased. Comparing the second quarter of 2022 to the same period the previous year, revenues from the division grew by 37%, while gross bookings grew by 7%.
The Mobility industry’s continued resurgence is a further boon. UBER predicts that demand for Mobility will continue to rise due to rising immunization rates in the United States and other key markets. In the second quarter of 2022, mobility revenues increased by more than 100% year over year as ride volumes continued to recover, while gross bookings from the division increased by 55%. The company forecasts $29 billion to $30 billion in gross bookings for the third quarter.
The uptick in Uber Technologies, Inc. (NYSE:UBER) adjusted EBITDA may be attributed to the company’s renewed commitment to fiscal responsibility, strengthening its Mobility operations, and enhancing its Delivery adjusted EBITDA. Compared to a loss of $509 million in the same quarter a year prior, the company posted $364 million in adjusted EBITDA in the second quarter of 2022. The adjusted EBITDA will be between $440 and $470 million for the third quarter.
However, bottom line of UBER is jeopardized due to rising costs and expenses. In the first six months of 2022, costs and expenses increased by 68.9% from the same period the previous year, with sales and marketing costs increasing by 5.2% and the cost of revenues increasing by more than 100%.
Featured Image- Megapixl @Prykhodov
Author Shariq Khan 
