By
Steve Muchoki
February 9th, 2024
Uber reported record profits and milestones in the second quarter of 2023, with significant improvements in earnings per share, operating income, and EBITDA, as well as a substantial increase in trips and food delivery orders.
On August 1st, the shares of Uber Technologies Inc (NYSE: UBER) fell by more than 5.5% after the publication of the financial results for Q2 of 2023. This drop can be attributed to the fact that, despite the company’s earnings per share (EPS) of $0.18, the revenues were lower than expected by the shareholders.
According to the report, UBER’s earnings per share showed a significant improvement compared to the $1.33 per share loss they experienced during the same period last year.
Uber Hits Revenue and Profit Milestones in Second Quarter
Uber’s revenues rose to 14% during the second quarter, generating $9.2 billion in Q2 2023. This reflects a 14% increase compared to Q2 2022. The company attributed the growth primarily to a 25% increase in trips and a 12% rise in food delivery orders. Additionally, Uber noted substantial user growth globally in Latin America (+30%), Europe, Middle East, and Africa (+31%), and Asia Pacific (+31%).
Another positive aspect for Uber was achieving an operating income of $326 million during the second quarter, compared to an operating loss of $713 million in the same period in 2022.
Using EBITDA, a key financial indicator to measure a company’s profitability, Uber reached $916 million, representing a 152% year-on-year growth and demonstrating significant improvements in the automotive giant’s profitability.
Uber’s CEO, Dara Khosrowshahi, stated that the company’s new growth initiatives contributed to a 22% increase in trips, helping the workforce of 6 million drivers earn a record $15.1 billion during Q2.
“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, […] These results also translated into strong driver and courier engagement, with 6 million drivers and couriers earning a record $15.1 billion during the quarter,” revealed the company.
Uber Reports Record Profits in Q2 2023
Uber achieved a record of $1.1 billion in free cash flow during the quarter, marking a 198% increase compared to Q2 2022. Thanks to this milestone, the company can continue investing in its expansion and service innovation.
Nelson Chai, Uber’s CFO, highlighted the team effort that led to two significant achievements during the second quarter: record profitability and over $1.1 billion in free cash flow, emphasizing the company’s commitment and position to “continue generating value for shareholders” in the years to come.
Regarding expectations, Uber anticipates gross revenues for the third quarter of 2023 to be between $34 billion and $35 billion. Additionally, they project an EBITDA of between $975 million and $1.025 billion.