Ride-hailing giant Uber Technologies reported second-quarter earnings that beat average analysts' estimates. Despite the stellar results, Uber still missed generating a positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) result.
For its latest quarter, Uber generated a positive net income of $1.14 billion, which the company accredited to its investments in companies such as Aurora Innovation and Didi Chuxing. The increase in its net income was from the company's unrealized gains of $1.4 billion with Didi and $471 million with Aurora. Uber reported an operating loss of $1.19 billion for the quarter.
According to its second-quarter financial results, Uber generated earnings per share of about 58 cents - higher than the 51 cents expected by Wall Street. Revenue for the quarter hit $3.93 billion, beating analysts' expectations of $3.75 billion for the three-month period.
The company's second-quarter performance places it on track to hit its profitability goals. Uber reaffirmed its commitment to reach profitability on an adjusted EBITDA basis before the end of the year.
Uber's CFO Nelson Chai said the company expects its third-quarter performance to improve. He said he expects the company to hit gross bookings of between $22 billion and $24 billion.
Both of the company's main business units saw substantial growth over the second quarter. However, the company's food delivery business still represented a larger chunk of its total revenue.
Uber said its Eats business played a significant role in helping the company withstand the effects of the global pandemic. As people stopped using its ride-hailing service, more people turned to its delivery business for their needs.
Uber's ride-hailing business grew by 184% year-on-year to $8.6 billion. Its food delivery business grew by 85% year-on-year to $12.9 billion for the period.
The company acknowledged that it was still struggling with supply and demand imbalances caused by the global health crisis. Uber CEO Dara Khosrowshahi admitted that the company has failed to hit its price and waiting time targets for the period.
Despite its stellar performance and mostly positive business outlook, Uber's stock still fell by more than 4% in extended trading Wednesday. Since its peak in February, Uber's stock has dropped by more than 30%.
