Uber Technologies (UBER) posted its first-ever quarterly operating profit, but shares slumped as revenue missed estimates.
Uber reported it made $326 million in operating profit after losing $713 million the year before. Net income came in at $394 million, or $0.18 per share, beating forecasts. However, while revenue increased 14% to $9.23 billion, analysts had been anticipating $9.34 billion. Sales were hurt by price cuts from rival Lyft (LYFT), which took business away from Uber.1
Gross bookings rose 16%, with mobility gross bookings jumping 25% and delivery gross bookings higher by 12%. EBITDA margin, which for Uber is EBITDA as a percentage of gross bookings, hit an all-time high. Free cash flow of $1.14 billion was also a record.
The number of trips taken by Uber drivers grew 22% to 2.3 billion, or approximately an average of 25 million per day.
CEO Dara Khosrowshahi said, “Robust demand, new growth initiatives, and continued cost discipline resulted in an excellent quarter.”
Uber predicted that current quarter gross bookings would be $34 billion to $35 billion, putting the midpoint higher than expectations. It sees EBITDA of $975 million to $1.03 billion, well above estimates.
Shares of Uber Technologies fell roughly 6% in intraday trading on Tuesday after hitting a two-year high on Monday.
Originally published on Investopedia.com
