TLDR
- Uber reported Q2 revenue of $12.65 billion, beating analyst estimates of $12.46 billion with 18% year-over-year growth
- Company announced authorization of a $20 billion share buyback program
- Monthly active users increased 15% to 180 million with 3.3 billion trips booked during the quarter
- Uber now partners with 20 autonomous vehicle companies and offers services in 12 cities
- Stock gained 48% year-to-date through Tuesday’s close, outperforming the Nasdaq’s 8% gain
Uber delivered another solid quarter that showed the ride-hailing giant isn’t sweating the robotaxi revolution just yet. The company posted second-quarter revenue of $12.65 billion, topping Wall Street’s $12.46 billion estimate.
The 18% revenue jump from last year’s $10.7 billion suggests consumers are still plenty willing to summon rides through their phones. Net income climbed to $1.36 billion, or 63 cents per share, from $1.02 billion a year ago.
But the real headline grabber was Uber’s announcement of a $20 billion stock buyback authorization. That’s serious money that signals management’s confidence in the business model.
Gross bookings rose 17% to $46.8 billion across the platform. The mobility segment saw bookings of $23.76 billion, up 18% year-over-year. Delivery bookings hit $21.73 billion, jumping 20% from the prior year.
User Growth Remains Strong
Monthly active platform consumers grew 15% to 180 million in the second quarter. Users booked around 3.3 billion trips during the period, an 18% increase from last year.
CEO Dara Khosrowshahi told CNBC the company isn’t seeing consumer weakness. “It’s steady as she goes, and for Uber, that’s great news,” he said.
The company launched Senior Accounts with larger text and icons for older users. It’s also testing a feature allowing women to avoid being paired with male drivers or riders when possible.
Cross-platform activity remains a focus as Uber tries to get riders to also use delivery services. In some international markets, Uber Eats actually outperforms ride-hailing in popularity.
Autonomous Vehicle Strategy Takes Shape
Rather than viewing robotaxis as a threat, Uber is embracing the technology through partnerships. The company now works with 20 autonomous vehicle companies and offers services in 12 cities.
Partners range from established players like Waymo and Apollo Go to newer startups including May Mobility, Nuro and Wayve. Uber and Waymo launched commercial robotaxi service in Austin, Texas in March.
Khosrowshahi called this “physical world AI” and expects it to be a huge trend. The CEO welcomed Tesla’s entry into the robotaxi space, saying competition will create safer streets.
Last month, Uber announced a $300 million investment in electric vehicle maker Lucid. The partnership aims to deploy 20,000 or more autonomous vehicles over six years starting next year.
William Blair analyst Ralph Schackart noted that consumer strength remains robust. He said Uber is passing insurance cost savings to customers and seeing trip growth acceleration as a result.
The company forecast third-quarter gross bookings of $48.25 billion to $49.75 billion. That’s ahead of Wall Street’s $47.5 billion projection.
Uber shares gained 1.7% in premarket trading after initially falling following the earnings release. The stock has surged 48% year-to-date through Tuesday’s close, well ahead of the Nasdaq’s 8% gain over the same period.
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