Uber posts positive cash flow for the first time, shares rise

Uber on Tuesday announced positive quarterly cash flow for the first time, while projecting third-quarter operating results above market estimates, with a bet on solid demand for its transportation and food delivery services.

Uber shares, which fell more than 40% in 2022, were up 15% to $28.41 each in premarket trading and helped drive an 8% gain in rival Lyft shares.

Uber generated free cash flow of $382 million in the second quarter, beating analysts’ expectations of $263.2 million as rides surpassed pre-pandemic levels, driven by office reopenings and a surge in demand. of travel.

The number of drivers and couriers on its platform increased by 31% to an all-time high of nearly 5 million, alleviating concerns of the effects of rising gasoline prices on new additions.

“That’s right: more people are earning on Uber today than before the pandemic,” said the company’s chief executive, Dara Khosrowshahi.

Growth in its food delivery business has slowed, but Uber expects the model to become the standard for consumers as the company continues to add new partners.

Revenue from the delivery business rose 37% from a year earlier to $2.69 billion, while revenue from the ride-hailing business rose 120% to $3.55 billion in the quarter ended June 30.

Analysts had expected revenue of $2.58 billion from delivery and $2.93 billion from shipping.

Gross bookings, or the total value of bookings made on its platform, rose 33% to $29.1 billion.

Uber’s adjusted EBITDA for the quarter was $364 million, beating estimates of $257.89 million.

The company now expects adjusted EBITDA of between $440 million and $470 million in the third quarter, well above estimates of $383.95 million, according to data compiled by Refinitiv’s IBES with analysts.