Revenue Beats Estimates, Profit Rises Sharply
Uber posted second-quarter results that met profit expectations and beat revenue forecasts, while also announcing a massive $20 billion stock buyback plan. The company reported earnings per share of 63 cents, in line with analyst estimates, and revenue of $12.65 billion, surpassing the expected $12.46 billion. Net income rose to $1.36 billion, up from $1.02 billion a year earlier.
Gross bookings climbed 17% year over year to $46.8 billion, with adjusted earnings reaching $2.12 billion. Uber’s mobility segment saw an 18% increase in gross bookings, while its delivery business grew 20%.
User Growth and Feature Expansion
Monthly active platform consumers increased 15% to 180 million, with users booking 3.3 billion trips in the quarter. New initiatives included the launch of Senior Accounts with an optimized interface and the testing of a female-preference matching feature in the U.S., allowing women riders and drivers to avoid male pairings when possible.
CEO Dara Khosrowshahi emphasized consumer strength, stating, “It’s steady as she goes, and for Uber, that’s great news.”
AI and Autonomous Vehicle Strategy
Uber is intensifying its focus on artificial intelligence and autonomous transportation. The company now partners with 20 firms in the autonomy space and offers autonomous services in 12 cities. Key partners include Waymo, Apollo Go, Nuro, and May Mobility.
Uber and Waymo launched commercial robotaxi operations in Austin earlier this year and recently expanded to Atlanta. Khosrowshahi noted that Waymo vehicles in Uber’s network outperform 99% of human drivers in daily completed trips.
In addition, Uber invested $300 million in EV manufacturer Lucid to develop robotaxis in collaboration with Nuro. This strategic investment underscores Uber’s ambition to integrate more autonomous vehicles into its platform.
Outlook and Market Reaction
Despite a solid quarter and strong annual performance — Uber shares are up 48% year-to-date — the stock dipped slightly by 2% after the earnings call. Analysts are closely watching Uber’s moves in AI and autonomy, particularly its ability to scale these technologies without undermining its core business model.
Uber’s approach is to blend human and robotic drivers, aiming for increased efficiency and broader service coverage. Khosrowshahi confirmed the company will likely pursue more deals in this area to stay ahead in the rapidly evolving mobility landscape.
