Key facts
- Uber forecast Q3 adjusted earnings per share between 84 cents and 88 cents, below the 89 cents expected by analysts.
- Foreign exchange is expected to reduce reported gross bookings growth by approximately one percentage point in Q3.
- The company plans to invest over $10 billion in autonomous vehicles in the coming years.
- Uber's Q2 gross bookings reached $58.02 billion, exceeding analyst expectations.
- Q2 adjusted core earnings also surpassed analyst expectations.
- Q2 revenue increased 12% to $14.19 billion, slightly missing estimates.
Uber Technologies forecast current-quarter adjusted earnings below Wall Street estimates on Wednesday, citing foreign exchange headwinds that are expected to trim bookings growth. The company also reaffirmed its commitment to significant investments in robotaxis and acquisitions, including a $14.8 billion deal for Delivery Hero funded by existing liquidity and debt.
Uber outlined plans to spend more than $10 billion on autonomous vehicles in the coming years, though a specific timeline was not provided. For the third quarter, Uber projected gross bookings between $58.25 billion and $60.25 billion, which is broadly in line with analysts' expectations of $59.21 billion. The company anticipates foreign exchange will reduce reported gross bookings growth by about one percentage point compared to the previous year, a reversal from the boost seen in prior quarters.
In the second quarter, Uber's gross bookings reached $58.02 billion, surpassing analysts' estimates of $57.06 billion. Adjusted core earnings also exceeded expectations, benefiting from broad demand across regions and services, including travel related to the FIFA World Cup, which saw over 8 million tourists use Uber in host cities. Revenue for the second quarter rose 12% to $14.19 billion, narrowly missing estimates of $14.24 billion due to an accounting change in Britain that affected reported sales growth without impacting underlying economics.
Uber projected third-quarter adjusted earnings per share to be between 84 cents and 88 cents, falling short of analysts' expectations of 89 cents. Operating expenses increased by approximately 10% in the second quarter, with higher spending across marketing, research, and administrative operations. The company noted that it attracted more first-time users over the past year than in any comparable five-year period, contributing to a 24% increase in gross bookings.