Uber Technologies Inc (NYSE: UBER) stock traded around $39.85, down approximately 4.69% during the after-hours trading session. Notably, Uber shares closed Wednesday trading at $41.81, down 2.29%. The dip has been attributed to mixed Q2 2021 earnings results announced by the Uber company yesterday.
According to the earnings report, Uber recorded a revenue of $3.93 billion during the second quarter against $3.75 billion estimated by Wall Street analysts. Consequently, earnings per share came in at 58 cents versus an expected loss of 51 cents during the last three months of the first half of the year.
Notably, its adjusted EBITDA loss came in at $509 million, down $150 million in comparison to the prior quarter. EBITDA refers to the earnings before interest, taxes, depreciation, and amortization. The company, however, performed lower than expected by analysts in EBITDA, as they had anticipated Uber to report a loss of $324.5 million.
Uber Market Outlook and Company’s Results in Q2 2021
In a bid to reassure investors, the company said it expects the EBITDA to further drop in the coming quarters. “As we make progress towards that important milestone, we expect our Adjusted EBITDA loss in Q3 to improve to less than $100 million in addition to record Gross Bookings between $22 and $24 billion,” CFO Nelson Chai said in a letter to investors.
The company has significantly rebounded from the coronavirus crisis that began earlier last year. Uber has significantly diversified its business structure, thereby bolstering its general income. One of its major sources of revenue is the Uber Eats segment that has thrived significantly during the Covid pandemic. Furthermore, more people have been ordering food delivery as restaurants remain closed. According to the company, its delivery segment remained strong despite easing coronavirus restrictions.
During Q2 2021, the mobility gross bookings of Uber came in at $8.6 billion, up 184% a year ago. Additionally, the company’s delivery gross bookings came in at $12.9 billion, up 85% from last year’s second quarter.
The spike has been directly attributed to notable investment in its drivers during the second quarter. “In Q2 we invested in recovery by investing in drivers and we made strong progress, with monthly active drivers and couriers in the US increased by nearly 420,000 from February to July,” explained CEO Dara Khosrowshahi.
Reportedly, during the second quarter, Uber added approximately 30% of new drivers in the United States. As competition increases in the ride-hailing industry the huge investment made was worthwhile.
“The good news is we’re now in a good place where we’re able to pull those investments back,” Khosrowshahi said. “The investments were big, but the investments were worth it.”