Original Article By “Tyler Durden” At ZeroHedge.com
After LYFT’s solid report (and share price gains), UBER is tanking after-hours despite reporting its first positive EBITDA (+$8mm), boosted by a recovery in ride-hailing and sustained demand in its delivery business.
“While we recognize it’s just a step, reaching total-company adjusted Ebitda profitability is an important milestone for Uber,” Chief Financial Officer Nelson Chai said in statement.
Revenue rose 72% to $4.8 billion (beating the $4.4 billion analysts had projected).
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Gross bookings missed expectations ($23.1bn vs $23.3bn exp) and will be $25 billion to $26 billion, about in line with estimates.
But critically, the company said adjusted earnings will be $25 million to $75 million in the period that ends in December (well below analysts’ expectation of $98.1 million).
UBER shares erased the LYFT lift…
Unlike its rival Lyft, Uber was able to rely on its food-delivery business Uber Eats, which boomed during the pandemic just as ride share demand cratered. The delivery segment, which includes orders across restaurant, grocery and alcohol, has continued to grow despite indoor dining resuming, up 50% from a year ago to $12.8 billion in bookings.
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“Uber has to show that in addition to working toward being profitable that they can also maintain and grow market share against DoorDash,” said RBC Capital Markets analyst Brad Erickson.
Uber also recorded a net loss of $2.4 billion. The company wrote down an unrealized loss of $3.2 billion on its stake in Didi Global Inc., wiping out the $1.4 billion it made after the Chinese ride-hailing giant went public in June.
