Uber issued a third-quarter forecast for bookings and earnings that fell below analyst expectations, while reporting second-quarter profit that met estimates. The ride-hailing company projected third-quarter bookings of $59.25 billion at the midpoint, trailing the $59.33 billion average analyst estimate, and earnings per share of 84 to 88 cents, below the 89-cent consensus. The weaker outlook came as Uber's second-quarter revenue of $14.19 billion slightly missed the $14.24 billion estimate, though earnings per share of 81 cents matched expectations. Uber shares have declined 12% this year as of Tuesday's close, underperforming the Nasdaq's 14% gain over the same period.
Uber Reports Second-Quarter Financial Results
Uber's second-quarter revenue reached $14.19 billion, representing a 12% increase from $12.65 billion a year earlier. Net income climbed to $2.39 billion, or $1.17 per share, compared to $1.35 billion, or 63 cents per share, in the same period last year. The company's core mobility service generated $7.36 billion in second-quarter sales, while delivery revenue reached $5.25 billion. Mobility gross bookings increased 22% year-over-year to $28.99 billion, and delivery bookings rose 26% to $27.46 billion. Total bookings of $58 billion exceeded the $57.23 billion average analyst estimate, according to StreetAccount.
Uber Projects Third-Quarter Performance Below Estimates
For the third quarter, Uber forecasts bookings of $59.25 billion at the middle of its guidance range, falling short of the $59.33 billion average StreetAccount estimate. The company's earnings per share forecast of 84 to 88 cents came in below the 89-cent average analyst estimate compiled by LSEG.
Uber Announces Strategic Expansion Initiatives
Uber announced a $14.8 billion agreement last month to acquire Germany's Delivery Hero. The acquisition will expand the number of markets where Uber can deliver food and groceries. CEO Dara Khosrowshahi stated in prepared remarks that the World Cup provided a boost to the ride-hail business during the quarter, with more than 8 million tourists taking rides across host cities in the U.S., Canada and Mexico.
Uber Commits Over $10 Billion to Autonomous Vehicle Development
Uber stated it expects to commit over $10 billion in coming years to bring autonomous vehicles to market at scale. Khosrowshahi said the company is building "one of the most valuable positions in the AV ecosystem" as the industry shifts from proving the technology to commercializing it at scale. The company has been forming partnerships with robotaxi providers, though it does not break out the share of rides or deliveries with and without drivers.
Uber and Waymo End Exclusivity Agreement in Two Markets
Uber and early robotaxi partner Waymo recently announced they would end an exclusive arrangement in Atlanta and Austin, Texas, by early 2028. The companies did not provide additional details about the reasons for ending the exclusivity agreement.
FAQ
Why did Uber's third-quarter forecast fall below analyst expectations?
Uber projected third-quarter bookings of $59.25 billion at the midpoint, below the $59.33 billion analyst estimate, and earnings per share of 84 to 88 cents, under the 89-cent consensus. The company did not provide specific reasons for the weaker-than-expected guidance in the source material.
What is Uber's strategy for autonomous vehicles?
Uber plans to commit over $10 billion in coming years to bring autonomous vehicles to market at scale. CEO Dara Khosrowshahi stated the company is building one of the most valuable positions in the AV ecosystem as the industry shifts from proving technology to commercializing it at scale, though specific deployment timelines were not disclosed.
How will the Delivery Hero acquisition affect Uber's business?
Uber's $14.8 billion acquisition of Germany's Delivery Hero, announced last month, will increase the number of markets where Uber can deliver food and groceries. The deal expands Uber's delivery footprint beyond its current operations.
