Uber reported its results for the second quarter of this year and saw growth in almost every part of its business.
So how did the company perform?
The company saw a sharp increase in revenue. Year-over-year, revenue rose 105% to $8.1 billion.
Despite such an increase in sales, the company also recorded a net loss of $2.6 billion. This was primarily due to exceptional items such as write-downs on the value of investments in Aurora, Grab and Zomato.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was $364 million, compared with a loss of $509 million last year.
Uber reported a free cash flow of $382 million. This indicator tells how much cash the company has left after deducting from its operating income the expenses necessary to keep it running, including buying new or maintaining existing plants, equipment and other assets.
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The number of drivers and delivery drivers on the company’s platform grew 31% to a record of nearly 5 million. This has allayed fears that the sharp rise in gasoline prices will discourage sign-ups with the company.
CEO Dara Khosrowshahi commented on the results.
“Last quarter I challenged our team to meet our profitability commitments even faster than planned-and they delivered.”
The company’s CFO Nelson Chai also had positive news for the future.
“We became a free cash flow generator in Q2, as we continued to scale our asset-light platform, and we will continue to build on that momentum.”
Delivery slows after a pandemic
Growth in the delivery business is slowing. But Uber expects orders to become the norm for customers as it continues to attract new partners.
The delivery division’s revenue rose 37% to $2.69 billion. Revenue in the ride-sharing division rose 120% to $3.55 billion.
Uber shares are down more than 40% since the beginning of this year. However, in response to the news, the stock has gained nearly 19% for the day