Uber shares rally 9% after outpacing expectations

Uber Technologies (UBER) reported Q2 earnings that exceeded analyst expectations for both revenue and EPS. The company posted an adjusted EPS of $0.47, significantly above the previous year's $0.18. Revenue for the quarter was $10.70 billion, up 16% year-over-year, surpassing the anticipated $10.58 billion. Gross bookings grew by 19% year-over-year to $39.95 billion, also exceeding the estimated $39.71 billion.

Shares of UBER are up approximately 9% as it rallies back above the $60 level. This is coming into a confluence of resistance at the $64-67 area which also includes the 200-day moving average ($66.11). The key element for all these earnings today (CAT, PLTR, CSX, etc) is the ability for these companies to hold gains.

The company provided solid guidance for Q3, expecting gross bookings between $40.25 billion and $41.75 billion, compared to the consensus estimate of $41.27 billion. Adjusted EBITDA is forecasted to be between $1.58 billion and $1.68 billion, placing the analyst consensus of $1.63 billion at the midpoint. These projections indicate continued growth and confidence in the company's operational performance.

Uber's segment performance highlighted robust growth in its Mobility and Delivery businesses. Mobility bookings reached $20.55 billion, a 23% year-over-year increase, while Delivery bookings were $18.13 billion, up 16% year-over-year. The Freight segment recorded bookings of $1.27 billion, consistent with expectations. Overall, trips on the platform grew by 21% year-over-year to 2.77 billion, averaging approximately 30 million trips per day.

Key metrics from the earnings report included net income of $1.02 billion, a substantial increase from $394 million in the previous year. The company's adjusted EBITDA was $1.57 billion, marking a 71% year-over-year increase and exceeding the $1.5 billion estimate. Operating cash flow was $1.8 billion, with free cash flow at $1.7 billion, demonstrating strong liquidity and operational efficiency.

In terms of segment-specific performance, the Mobility segment reported revenue of $6.1 billion, a 25% year-over-year increase. The Delivery segment posted revenue of $3.3 billion, up 8% year-over-year. The Freight segment's revenue was flat year-over-year at $1.3 billion, reflecting the challenging market conditions in the freight industry.

Uber's platform also showed significant growth in user engagement. Monthly Active Platform Consumers (MAPCs) reached 156 million, a 14% year-over-year increase. The company continued to support its drivers and couriers, who earned a total of $17.9 billion during the quarter, a 19% year-over-year increase. Uber also expanded its Uber One membership program and its advertising business, which now has a revenue run-rate exceeding $1 billion.

Overall, Uber's Q2 results demonstrated strong performance across its segments and highlighted the company's ability to navigate market challenges while maintaining growth. The positive guidance for Q3 and full-year 2024 underscores Uber's confidence in its operational strategy and its potential for continued success.