Uber matched quarterly profit estimates and topped bookings expectations, but its outlook for third-quarter gross bookings and adjusted profit came in below Wall Street projections. Adjusted earnings were 81 cents a share, in line with consensus.
Quarterly net income was $2.39 billion, or $1.17 per share, versus $1.35 billion, or 63 cents per share, in the year-earlier quarter.
Mobility, Uber's ride-hailing unit, recorded $7.36 billion in quarterly sales; delivery revenue was $5.25 billion. Mobility gross bookings climbed to $28.99 billion, a 22% yearly gain, and delivery bookings grew 26% to $27.46 billion. StreetAccount said total bookings hit $58 billion, above the $57.23 billion consensus.
After the report came out, the stock dropped 7% Wednesday. The selloff followed a report that beat on total bookings and met profit forecasts. Investors focused instead on the weak third-quarter guidance.
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Uber's year-to-date slide also contrasts sharply with the Nasdaq's 14% advance. Recent company moves include its $14.8 billion agreement to buy Germany's Delivery Hero and a planned investment of more than $10 billion in autonomous vehicles.
Uber is expanding its delivery business.
On the earnings call, CEO Dara Khosrowshahi said the World Cup helped ride-hailing during the quarter. More than 8 million passengers used Uber for trips in Canadian, American, and Mexican World Cup cities. Khosrowshahi also said, "The business continues to execute incredibly well."
Autonomous vehicles remain a major focus for Uber.
Uber's second-quarter results showed strength across both mobility and delivery. The company's biggest commitments are the $14.8 billion Delivery Hero deal and the autonomous-vehicle spending plan, both of which will require substantial capital in the years ahead.
Mobility and delivery both contributed to that growth, with mobility bookings up 22% to $28.99 billion and delivery bookings up 26% to $27.46 billion. Net income increased to $2.39 billion from $1.35 billion a year earlier. The Delivery Hero deal and the autonomous-vehicle plan are the company's biggest capital commitments.
The second-quarter numbers show solid growth across mobility and delivery, with total bookings reaching $58 billion. The weaker third-quarter guidance, though, suggests management expects the current period to be less robust, and the market punished the stock accordingly. Uber's heavy spending on expansion, from Delivery Hero to autonomous vehicles, adds another layer of uncertainty for investors gauging near-term profitability. The stock's response to the report underscores how much weight Wall Street is putting on the next quarter's outlook as Uber juggles delivery growth and autonomous-vehicle costs.
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