Uber Beats Second-Quarter Revenue Estimates, Announces $20 Billion Stock Buyback and AI Focus on Autonomous Services
In a quarterly financial report disclosed on Wednesday, ride-sharing giant Uber surpassed revenue expectations and authorized a $20 billion stock buyback program. The company’s performance was as follows in comparison to analyst projections compiled by LSEG:
Key financial metrics for the period:
– Uber’s total revenue increased by 18% from $10.7 billion in Q2 of last year, amounting to $12.44 billion this quarter.
– Net income significantly grew to $1.36 billion or 63 cents per share, compared to $1.02 billion, or 47 cents per share, during the same period in 2020.
– Gross bookings registered a 17% growth, reaching $46.8 billion.
– Adjusted earnings saw an uptick to $2.12 billion.
Uber’s CEO Dara Khosrowshahi remarked on CNBC’s “Squawk Box” that consumer demand remains strong and the company is experiencing steady growth. He expressed optimism, stating, “For Uber, this is great news.”
The company reported an increase of 15% in its monthly active platform consumers to 180 million during Q2. Users made approximately 3.3 billion trips, marking a 18% surge year-over-year.
Uber introduced Senior Accounts this quarter, offering an enhanced app experience designed for easier navigation with larger text and icons, as well as features facilitating family members to manage rides on behalf of others.
The company is also testing a new feature in the U.S., allowing women passengers or drivers to opt for male-free ride assignments when available.
Uber Eats’ food delivery service has gained popularity in certain international markets, where it surpasses ride-hailing. The company aims to boost cross-platform activity to drive sales growth. Khosrowshahi emphasized this goal in a recent release.
Although Uber does not disclose specific data regarding self-driving trips or deliveries, the company is making significant strides in artificial intelligence technology. Khosrowshahi highlighted AI’s potential as “a huge trend going forward.”
Uber has partnered with 20 companies specializing in autonomous mobility, delivery, and freight services, offering autonomous services in 12 different cities. These partners include leaders like Waymo and Apollo Go, alongside venture-backed startups such as May Mobility, Nuro, and Wayve.
Uber and Alphabet-owned Waymo commenced commercial robotaxi service in Austin, Texas, in March, preceding Elon Musk’s automaker Tesla’s entrance to the market. Khosrowshahi expressed support for Tesla’s cautious approach, stating that “All of this competition in autonomous will create safer streets, and we’re going to be a big part of that.”
Uber shares have risen 48% since the beginning of the year, while the Nasdaq has increased by approximately 8%. Executives are set to discuss results and future outlook with analysts during a call scheduled for 8 a.m. ET.