Uber Technologies (NYSE:UBER) posted stronger-than-expected second-quarter results, driven by growth in both its ride-hailing and food delivery operations, while unveiling a $20 billion share repurchase authorization.
Adjusted earnings per share came in at $0.63, narrowly beating the $0.62 estimate. Revenue rose 18% year-over-year to $12.7 billion, topping expectations of $12.47 billion.
Gross bookings climbed 17% to $46.76 billion, slightly above the $46.42 billion forecast. Despite the strong numbers, shares dipped 0.5% at the market open.
The company reported an 18% rise in trips to 3.3 billion, supported by a 15% increase in monthly active platform users. Adjusted EBITDA surged 35% to $2.1 billion, with margin expansion to 4.5% of gross bookings.
Revenue from the mobility segment increased 19% to $7.29 billion, while delivery revenue rose 25% to $4.1 billion. Freight revenue edged down 1% to $1.26 billion.
CFO Prashanth Mahendra-Rajah stated that the newly authorized $20 billion buyback reflects management’s confidence in Uber’s long-term performance.
For Q3, Uber expects gross bookings of $48.25 billion to $49.75 billion, indicating 17% to 21% YoY growth, above the $47.58 billion consensus. Adjusted EBITDA is projected between $2.19 billion and $2.29 billion, consistent with estimates.
