Uber Q2 - First profits ever

Uber achieved a significant milestone in the second quarter of 2023, posting its first-ever operating profit. This was driven by solid growth in both its ride-hailing and food delivery businesses. Note that 37 Vestact clients own Uber shares.

The company reported a profit of $394 million, compared to a loss of $2.6 billion in the same period last year. Uber's revenue rose by 14% to $9.23 billion, and gross bookings grew by 16% to $33.6 billion.

Ride demand in the US and Canada surpassed pre-pandemic levels and there was robust demand for food delivery services even after restaurants have reopened.

Uber's freight division experienced a 30% decline in bookings and revenue, but the company's overall performance was bolstered by disciplined cost management, increased advertising, and improved operational efficiency.

Uber's CFO, Nelson Chai, will step down in January, and the company is actively searching for his successor. CEO Dara Khosrowshahi expressed confidence in Uber's future, and acknowledged that they must mature into a normal, profitable company.

The stock sold off a little after these numbers, but Uber shares have enjoyed a good recovery this year. It's been a long slog, but the company seems to have the required staying power. It now has a market capitalisation of $95 billion.