Uber Gears Up for Q2 Earnings: Revenue Expected to Soar Amid New Features and Partnerships
Word on the StreetMonday, Aug 5, 2024 5:00 am ET
1min readUber Technologies Inc. (UBER.US) is set to disclose its second-quarter earnings pre-market on Tuesday, Eastern Time. According to estimates compiled by Visible Alpha, Uber’s Q2 revenue is expected to surge from $9.23 billion a year ago to $10.56 billion. Net income is projected to rise from $394 million to $652 million, while earnings per share (EPS) are anticipated to increase from $0.19 to $0.31.
Key metrics to observe will include the total booking volume for both Uber Eats and the ride-hailing segments. Analysts, citing data from Sensor Tower, have noted that Uber Eats’ monthly active users (MAUs) converted to daily active users at a higher rate than those of Uber’s core ride-sharing platform during the second quarter. This active user data is seen as a proxy indicator for the company’s total booking volume over the quarter.
It is expected that the final booking volume for Uber Eats will surpass initial analyst predictions, whereas the mobility segment might fall short. Reflecting these trends, analyst forecasts have adjusted Uber's price target upward from $95 to $102.
During the quarter, Uber launched several new features and partnerships. In its annual Go-Get event held in May, the company revealed plans to offer discounted Uber One subscription services to university students and expanded its partnership with Costco. Additionally, Uber introduced a feature designed to facilitate ride scheduling for users, providing estimated wait times and ride fares across thousands of cities globally.
Analysts have pointed out that the implementation of these new features could potentially drive further revenue growth. A particular area of focus is on Uber’s new vertical businesses and their expected contribution to the company’s overall performance.
At the time of reporting, Uber’s pre-market shares were down by 4.56%, trading at $56.30.
Key metrics to observe will include the total booking volume for both Uber Eats and the ride-hailing segments. Analysts, citing data from Sensor Tower, have noted that Uber Eats’ monthly active users (MAUs) converted to daily active users at a higher rate than those of Uber’s core ride-sharing platform during the second quarter. This active user data is seen as a proxy indicator for the company’s total booking volume over the quarter.
It is expected that the final booking volume for Uber Eats will surpass initial analyst predictions, whereas the mobility segment might fall short. Reflecting these trends, analyst forecasts have adjusted Uber's price target upward from $95 to $102.
During the quarter, Uber launched several new features and partnerships. In its annual Go-Get event held in May, the company revealed plans to offer discounted Uber One subscription services to university students and expanded its partnership with Costco. Additionally, Uber introduced a feature designed to facilitate ride scheduling for users, providing estimated wait times and ride fares across thousands of cities globally.
Analysts have pointed out that the implementation of these new features could potentially drive further revenue growth. A particular area of focus is on Uber’s new vertical businesses and their expected contribution to the company’s overall performance.
At the time of reporting, Uber’s pre-market shares were down by 4.56%, trading at $56.30.
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