Uber issues weaker-than-expected bookings, earnings forecasts for third quarter
Uber's earnings were in line with estimates, but the company's guidance for the third quarter trailed expectations.
Uber has released weaker-than-anticipated bookings and earnings forecasts for the third quarter, falling short of analysts' expectations. The company's revenue rose 12% from the previous year, reaching $12.65 billion, while net income increased to $2.39 billion, or $1.17 a share, up from $1.35 billion, or 63 cents a share a year ago.
Core mobility service revenues accounted for $7.36 billion in the second quarter, with delivery revenue reaching $5.25 billion. Uber's mobility gross bookings grew 22% to $28.99 billion, and delivery bookings increased by 26% to $27.46 billion, surpassing the average analyst estimate of $57.23 billion. For the upcoming quarter, Uber forecasts bookings at $59.25 billion, slightly below the StreetAccount average estimate of $59.33 billion.
The company's EPS forecast of $0.84 to $0.88 fell short of the 89-cent average analyst estimate. As Uber expands its delivery operations, it recently secured a $14.8 billion deal to acquire Germany's Delivery Hero, boosting its reach in food and grocery delivery markets. CEO Dara Khosrowshahi attributes the strong ride-hailing performance in the quarter to the World Cup, which drew over 8 million tourists using Uber in the U.S., Canada, and Mexico.
The company is also heavily investing in autonomous vehicles, committing over $10 billion to bring AVs to market. However, Uber's partnership with Waymo for robotaxis is facing challenges, as both companies recently announced they will end their exclusive agreement in Atlanta and Austin by early 2028. Uber will present a conference call with analysts at 8 a.m. ET.
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