Uber Q2 2022 Earnings Report Recap

UBER beat on gross bookings and revenue, but missed by a mile on EPS

Key Takeaways

  • Uber’s gross bookings reached an all-time high, solidly beating estimates.
  • The company’s gross bookings metric provides a snapshot of the scale of all of Uber’s ride-sharing, food delivery, and other services.
  • The company said it became a cash-flow generator in Q2, which will enable it to self-fund future growth.
Uber Earnings Results
Metric  Beat/Miss/Match  Reported Value  Analysts' Prediction 
Earnings Per Share   Miss -$1.33  -0.27 
Revenue (B)  beat $8.1  $7.4 
Gross Bookings (B)  beat $29.1 $28.9 

Source: Predictions based on analysts' consensus from Visible Alpha

Uber (UBER) Financial Results: Analysis

Uber Technologies, Inc. (UBER) reported Q2 FY 2022 earnings results that were mixed relative to analyst expectations. Gross bookings solidly beat estimates. And revenue more than doubled year-over-year (YOY) to $8.1 billion, surpassing analyst predictions, driven in part by a change in the business model in the company’s UK Mobility business. But the company reported negative earnings per share (EPS) of -$1.33, about five times the loss per share expected. The loss was driven by a $1.7 billion pre-tax headwind tied to Uber’s equity investments, including unrealized losses related to the revaluation of Uber’s stakes in Aurora, Grab, and Zomato.

UBER Gross Bookings Segment

Uber’s gross bookings also beat analyst predictions, coming in at $29.1 billion. This represents growth of 33% YOY. This metric is defined as the total dollar value, including applicable taxes, tolls, and fees, generated by Uber's ride-hailing, grocery and food delivery, and freight-shipping businesses. Gross bookings provide a snapshot of the scale of all of Uber's services. Gross bookings are positively correlated with Uber's revenue, the portion of gross bookings that the company claims as its own.

Uber posted two strong years of gross bookings growth in FY 2018 and 2019, then fell 10.9% in FY 2020 amid the pandemic. Since then, gross bookings have continued to improve, rising 56.2% YOY in FY 2021.

UBER Outlook and Stock Performance

Uber predicted adjusted EBITDA of between $440 million to $470 million, as well as gross bookings of $29.0 billion to $30.0 billion for Q3 FY 2022.

In the company's earnings release, Chief Executive Officer (CEO) Dara Khosrowshahi said that Uber had passed a milestone. He said the company in Q2 posted strong gross bookings, EBITDA, and cash flow "all on a platform that’s larger than ever, with the number of consumers and earners using Uber now both at all-time highs.”

Uber shares soared by as much as 17.2% at noon in New York trading following the earnings release on Aug 2. The company’s stock has significantly underperformed the broader market in the past year.

Uber’s next earnings report (for Q3 FY 2022) is expected to be released Nov. 9, 2022.

Article Sources
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  1. Uber Technologies, Inc. “Uber Announces Results for Second Quarter 2022.”

  2. Visible Alpha. “Financial Data.”

  3. Uber Technologies Inc. "Form 10-K for the fiscal year ended December 31, 2020," Page 69.

  4. Visible Alpha. "Financial Data."

  5. Yahoo! Finance. "Uber Stock."

  6. MarketScreener. "Uber Technologies, Inc. (UBER)."

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