Uber Technologies Inc. improved its financial performance, doubled its quarterly revenue, and claimed that high inflation encouraged more people to opt for its platform to combat the increasing cost of living. The company reported positive quarterly cash flow for the first time and forecast that the operating profit for the third quarter would exceed expectations. The ride-hailing company reported that its revenue for the three months ending in June 2022 increased 105% to $8.07 billion. The company reported its highest-ever adjusted earnings of $364 million, which removed certain costs. However, the company recorded a net loss of $2.6 billion due to combined unrealized losses associated with the revaluation of Uber’s Aurora, Grab, and Zomato interests. This loss also included a $1.7 billion net headwind (pre-tax) pertaining to Uber’s equity investments.
First-Ever Positive Free Cash Flow
In Q2 2022, Uber earned a free cash flow of $382 million, with the number of trips exceeding the pre-pandemic levels due to the reopening of offices and a spurt in demand for travel. Uber achieved its projected goal of producing free cash flow from ongoing operations rather than a one-off adjustment for the first time. Its platform has nearly five million drivers and delivery agents, a 31% increase from the previous high. This allayed fears that the increasing prices of gas were discouraging people from joining the company.
Robust Growth in Bookings Drives Q2 Revenue
The company reported sales of $8,073 million in Q2 2022, which showed an increase of 18% over that in Q1 2022. The majority of the growth in revenue in the most recent quarter was aided by a 55% increase in Uber’s ride-hailing bookings. Uber Eats, the company’s delivery division, is growing in addition to notching record-breaking business during the pandemic, but the growth slowed recently. Bookings for Uber Eats increased 7% in the most recent quarter, falling short of analyst expectations due to a slowdown abroad. Bookings for the unit more than doubled from the corresponding quarter of 2021.
United States of America
Germany
Germany
Japan
United States of America
United States of America
United Kingdom
United States of America
United States of America
United States of America
Don’t wait - discover a universe of connected data & insights with your next search. Browse over 28M data points across 22 industries.
Access more premium companies when you subscribe to Explorer
Contact the team or request a demo to find out how our data can drive your business forward