Uber shares fall despite falling revenue as core business continues to lose money – TechCrunch

The Company Reaffirmed Its Adjusted Earnings Target For The Fourth Quarter And Shifted To Positive Net Income From Investments

Today after the bell Uber, the American ride-sharing giant, has released its second quarter financial results. The figures for the company come a day after national rival Lyft shared its own second quarter results.

Notably, while Lyft managed to generate positive adjusted EBITDA in the second quarter, Uber did not. However, Uber generated a positive net profit of $ 1.14 billion in the quarter from its investments in other companies like Didi and Aurora Innovation.

Starting from the top, Uber’s gross bookings totaled $ 21.9 billion in the second quarter, up 114% from the same period a year earlier. That gross platform spend generated $ 3.93 billion in revenue at Uber, up 105% from second quarter 2020 results of $ 1.91 billion.

Its second quarter performance was enough to keep Uber on track to meet its pre-tax profitability target, with the company reiterating that it will achieve adjusted EBITDA profitability by the fourth quarter, according to its earnings release. .

Analysts expected the company to post revenue of $ 3.74 billion and earnings per share of $ -0.51, according to data collected by Yahoo Finance. While exceeding expectations in terms of revenue, the company has not had the same success with its forecast of its loss of Adjusted EBITDA. Analysts expected a narrower Adjusted EBITDA loss of – $ 324.5 million. The reality of Adjusted EBITDA was a loss of $ 509 million.

Uber shares fell more than 8% in after-hours trading. Stocks have since rallied, but are still down more than 6%.

Digging into the company’s individual business operations, in terms of gross bookings, Uber’s ridesharing business saw the strongest growth in the second quarter of 2021, growing 184% from its bottom line. a year ago to reach $ 8.84 billion. Delivery, a larger share of the company’s gross bookings, rose 85% in the second quarter of 2021 to $ 12.91 billion from its comparable last year.

Uber generates less revenue per dollar of gross delivery bookings than rideshare, with its two companies generating $ 1.96 billion and $ 1.62 billion in revenue, respectively, despite their huge difference in total consumer spending.

Freight, Uber’s smallest named division by revenue, rose 64% to $ 348 million. Despite its small size, Uber has expanded the division and made strategic acquisitions and partnerships to help the segment break even on an adjusted EBITDA basis by the end of 2022.

Last month, Uber Freight acquired Transplace from private equity group TPG Capital for around $ 2.25 billion. The deal was for $ 750 million in Uber shares, the rest in cash.

Uber’s two key businesses were not profitable overall, with the company’s ridesharing and delivery businesses failing to save the business from negative adjusted earnings. However, Uber’s transportation business alone managed to post $ 179 million in positive Adjusted EBITDA – down from the company’s first quarter 2021 result – while the delivery business of the company posted another quarter of negative adjusted earnings, amounting to – $ 161 million in adjusted EBITDA.

Remember that Uber’s adjusted travel EBITDA is insignificant compared to the company’s unallocated expenses; Uber’s adjusted EBITDA for the second quarter of 2021 was – $ 509 million, a 39% improvement over the same period a year earlier, but still far from breakeven.

But the Uber district had a highlight to share in the form of other income. Uber’s operating loss of $ 1.19 billion was more than improved by the fact that the company earned $ 1.93 billion in non-operating revenue. This was mainly due to $ 1.91 billion of unrealized gains on “debt and equity securities”, including “an unrealized gain of $ 1.4 billion on [its] Didi’s investment and an unrealized gain of $ 471 million on [its] Aurora Investments recognized in the second quarter of 2021.

Didi went public in the second quarter.

When it comes to geography, Uber’s fastest recovery has come in the APAC region, where revenue climbed 227% from $ 217 million in the last quarter to $ 709 million. of dollars in the last three months of the business. The EMEA came in second in terms of growth, increasing revenue 159% from $ 358 million to $ 929 million over the same period. The United States and Canada posted revenue growth of 76%, from $ 1.13 billion to $ 1.98 billion, and Latin America managed a more modest rebound of 44% in the past. trimester.