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 earnings and bookings forecasts for the third quarter that fell short of analysts' expectations. The company's revenue grew by 12% year-over-year to $12.65 billion, while its net income rose to $2.39 billion, or $1.17 per share. Core mobility service revenue accounted for $7.36 billion, while delivery revenue was $5.25 billion.
Mobility gross bookings increased by 22% to $28.99 billion, and delivery bookings rose 26% to $27.46 billion. Total bookings reached $58 billion, surpassing the average analyst estimate of $57.23 billion. For the upcoming third quarter, Uber anticipates bookings of $59.25 billion, which falls slightly short of the average analyst estimate of $59.33 billion.
The company's EPS forecast of $0.84 to $0.88 is below the average analyst estimate of $0.89 per share. Uber's stock has declined 12% year-to-date, while the Nasdaq has risen 14% over the same period. The company is expanding its delivery services and recently announced a $14.8 billion acquisition of Germany's Delivery Hero, which will add more markets for food and grocery delivery.
Uber CEO Dara Khosrowshahi attributed the strong results in the second quarter to the World Cup, which drew over 8 million tourists to the host cities. The company is heavily investing in autonomous vehicles, committing over $10 billion in the coming years to bring AVs to market at scale. However, Uber is facing competition from rival Waymo, which has ended its exclusive agreement with Uber in Atlanta and Austin, Texas. Uber is set to host a conference call with analysts at 8 a.m. ET.
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