Uber Q3 Results: Co swings to black on ride-hailing demand; posts first operating profit

economictimes.indiatimes.com:

operating profit above Wall Street expectations as it sees growing demand for ride hailing due to strong leisure travel trends and gradual return to in-office work. The San Francisco-based company's shares rose about 4% in premarket trading, while rival Lyft's shares increased 2%, as Uber also reported a surprise second-quarter profit. Uber's cost controls ranging from layoffs to lower transaction costs and maintaining a steady headcount have helped the company maintain its target to post operating income profitability this year.

At the same time, the number of rides after the pandemic is growing. «Robust demand, new growth initiatives, and continued cost discipline resulted in an excellent quarter, with trips up 22% and a GAAP operating profit, for the first time in Uber's history,» CEO Dara Khosrowshahi said. However, Uber reported second-quarter revenue of $9.23 billion, missing analysts' estimates of $9.33 billion, according to Refinitiv IBES data, as a weak freight market pinches.

The ride-sharing company forecast third-quarter adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) — a profitability metric keenly watched by investors — between $975 million and $1.025 billion. Analysts are expecting $925.9 million. Meanwhile, adjusted EBITDA margin as a percentage of gross bookings hit a record high of 2.7% in the second quarter, the company said.

Separately, the company said its CFO Nelson Chai will leave Uber on Jan. 5, next year. «Over the next few quarters, we will evaluate returning excess capital to shareholders as our cash flows ramp, and with any potential further monetization of our equity stakes over the long term,» Uber added.