Uber reported its first operating profit ever in the second quarter. It’s stock dropped roughly 5% Tuesday, however, as results missed analysts’ expectations. CEO Dara Khosrowshahi said the company achieved its first quarter of free cash flow over $1 billion. Loading Something is loading.
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Uber stock is tumbling on Tuesday despite the company reporting its first-ever quarterly operating profit.
For the second quarter, the ride-sharing and delivery company fell short of analysts’ revenue expectations by about $100 million. Still, in addition to its milestone in profits, it completed its first-ever quarter of free cash flow over $1 billion and the company reported strong demand for rides and delivery services.
The stock dropped as much as 6.8% Tuesday, trading around $46.17 a share around 2 p.m. ET.
Here are the key numbers:
GAAP earnings per share: $0.18, above the expected loss of $0.01 per shareSecond-quarter GAAP operating profit: $326 millionTotal revenue: $9.2 billion, below the expected $9.3 billionNet income: $394 million, above the expected loss of $49.2 million”With continued rigor around costs and a balanced capital allocation approach, we are well positioned to sustain strong incremental profit generation,” CEO Dara Khosrowshahi said in a prepared statement. “We also know that expectations — rightly — are only getting higher.”
Khosrowshahi added that chief financial officer Nelson Chai will step down in January.
Uber has slashed hundreds of jobs this year— about 3% of staff — across its human resources, freight, and food-delivery divisions. Looking ahead, the company expects to see its growth continue into the next quarter.
“The unique power of the Uber platform and the team’s relentless focus on profitable growth was on full display in Q2, with record profitability and over $1 billion of quarterly free cash flow,” Chai said in a statement. “I’m incredibly proud of the progress we’ve made, and Uber is well positioned to drive tremendous value for shareholders in the coming years.”