Uber Q2 2021 Earnings Report Recap

^{Source: Predictions based on analysts' consensus from Visible Alpha}

Uber (UBER) Financial Results: Analysis

Uber Technologies, Inc. (UBER) reported Q2 FY 2021 earnings that smashed analysts' expectations. Earnings per share (EPS) came in positive for the first time in at least 13 quarters, handily beating analysts' forecasts of another quarterly loss per share. Uber said that its earnings were positively affected by unrealized gains of $1.4 billion and $471 million due to the revaluation of the company's equity investments in Didi and Aurora, respectively. Revenue for the quarter also exceeded analyst estimates, rising 105.4% year over year (YOY). Mobility gross bookings came in above consensus estimates.

The company's shares fell more than 7% in post-market trading. Over the past year, Uber's shares have provided a total return of 27.9%, below the S&P 500's total return of 33.2%.

UBER Mobility Gross Bookings

Uber's gross bookings for its mobility, or ride-hailing, segment rose 183.7% compared to the year-ago quarter. Uber's mobility business connects consumers with drivers, who provide rides in a range of different types of vehicles, including cars, motorbikes, and minibuses. Gross bookings represent a key metric defined as the total dollar value—including applicable taxes, tolls, and fees—generated by Uber's various businesses. Uber operates a mobility, grocery delivery, and freight shipping business, with mobility gross bookings representing the portion of total gross bookings that are generated by the ride-sharing segment of the company's operations.

The rise in mobility gross bookings broke a five-quarter streak of YOY declines triggered by the COVID-19 pandemic and related shelter-at-home and lockdown measures. Uber's food delivery business, however, expanded significantly as homebound diners were ordering more food for delivery, helping to bolster the company's overall financial performance. The mobility business has begun to recover with the rollout of vaccines and gradual relaxation of measures used to limit the spread of the virus. However, the faster-spreading Delta variant continues to pose health risks that could slow the recovery.

Uber's overall gross bookings across its mobility, delivery, and freight businesses rose 114.2% YOY, reaching an all-time high of $21.9 billion. The delivery business comprised about 59% of that total, followed by 39% for mobility and about 2% for freight shipping. However, the mobility segment is the only profitable one on an adjusted EBITDA basis. EBITDA stands for earnings before interest, taxes, depreciation, and amortization. Uber reported a consolidated adjusted EBITDA loss of $509 million in Q2. It expects to become adjusted EBITDA profitable by the fourth quarter of the current fiscal year.

Uber's next earnings report (for Q3 FY 2021) is estimated to be released on Nov. 3, 2021.