Uber Tech's Q2 revenue and profit both exceeded expectations, with a year-on-year increase in the number of trips by 21.5%, leading to a surge of over 10% during trading hours | Financial Report Insights
Uber Tech not only exceeded market expectations for Q2 revenue and profit, but also saw a 23% year-on-year surge in total bookings for the company's mobility division to $20.6 billion. The number of trips in the second quarter increased by 21.5% year-on-year, and Monthly Active Platform Consumers (MAPC) grew by 14%. Looking ahead to the third quarter, Uber expects bookings to range between $40.25 billion and $41.75 billion, slightly below the market's average expectation of $41.18 billion
Thanks to the stable demand for carpooling and food delivery services, Uber's revenue and profit both exceeded market expectations, with the company's stock price soaring 10.5% intraday.
On Tuesday, August 6th, before the US stock market opened, the world's largest ride-hailing platform Uber released its financial report for the second quarter of 2024 (ending June 30th).
1) Key Financial Data
Revenue: Total revenue in the second quarter increased by 16% year-on-year to $10.7 billion, higher than analysts' expectations of $10.57 billion;
EPS: EPS for the second quarter was $0.47, higher than analysts' expectations of $0.31;
Net Profit: Net profit for the second quarter was $1.02 billion, including $333 million in pre-tax income from "Uber's equity investment revaluation."
Gross Bookings: Total gross bookings for the Rides segment surged by 23% year-on-year to $20.6 billion, while the Eats segment's total gross bookings grew by 16% to $18.1 billion, and the Freight segment's total gross bookings remained flat at $1.27 billion.
Monthly Active Platform Consumers (MAPC): MAPC in the second quarter increased by 14% year-on-year to 156 million, with the number of trips taken through the Uber platform increasing by 21.5% to 2.77 billion. In the same period last year, there were 137 million consumers and 2.28 billion trips.
2) Outlook
Gross Bookings: Uber expects gross bookings for the third quarter to range between $40.25 billion and $41.75 billion, with a midpoint of $41 billion, slightly below the market's average expectation of $41.18 billion;
EPS: Adjusted earnings for Q3 are expected to be between $1.58 billion and $1.68 billion, with the midpoint slightly higher than the market's average expectation of $1.62 billion.
As of Monday's close, Uber's stock price has risen by over 4.7% year-to-date, and on Tuesday, overnight trading saw a surge of 10.5%.
Uber Shows Resilience Amid Weak Consumer Spending, Forms Strategic Partnership with BYD
Against the backdrop of weak global consumer spending, Uber demonstrated the resilience of its business and future potential with its strong performance in the second quarter and a series of innovative partnership projects.
Uber's number of trips increased by 21.5% in the second quarter, while Monthly Active Platform Consumers (MAPC) grew by 14%. Uber stated:
"We have more audience than ever before, and the frequency of using our services is higher than ever before. Despite the presence of high-income consumers in our user base, demand from users of all income levels remains strong, with no signs of weakness or downgrade. Even as macroeconomic concerns become a reality, we believe that due to the countercyclical nature of our platform, Uber can perform well." In May this year, Uber announced a partnership with Instacart to add a "restaurant" option to the grocery delivery app, allowing users to order directly from restaurants and have it delivered through Uber Eats.
On July 31st, Wall Street News learned that BYD announced a multi-year strategic partnership with the international mobile travel and delivery tech company Uber, planning to deploy 100,000 brand-new BYD electric vehicles in key global markets to further expand the electric vehicle lineup on the Uber platform. The two companies will work together to promote the popularization of electric vehicles. This collaboration will start in Europe and Latin America, and gradually expand to the Middle East, Australia, New Zealand, and other regions.
In addition, during the financial results conference call, Uber also revealed a partnership with Waymo in Arizona to provide autonomous vehicles and delivery services.
Although Uber CEO Khosrowshahi did not disclose specific details of the partnership with Waymo, he mentioned that overall, the utilization of autonomous vehicles on the Uber platform is much higher than when operated independently. He emphasized that Uber will continue to maintain its most liquid and largest market position and expects a fairly long period of mixed development as autonomous driving technology matures and regulatory policies become clearer, indicating that the autonomous vehicle market will not be a situation of "winner takes all."