Uber revises its outlook higher for the third quarter
Uber CEO Dara Khosrowshahi speaks at a product launch event in San Francisco, California on September 26, 2019.
Philip Pacheco | AFP via Getty Images
Uber on Tuesday revised its financial outlook for the third quarter, with bookings and adjusted profit now expected to be better than first reported.
The San Francisco-headquartered firm said in an SEC filing that now expects to report between $22.8 billion and $23.2 billion in gross bookings for the current quarter, adjusted from the $22 billion to $24 billion it predicted on its second-quarter earnings call.
Gross bookings were at $21.5 Billion for the quarter. The figures include $8.6 billion in mobility and $12.9 billion for food delivery.
Uber CEO Dara Khorowshahi stated that “crisis breeds opportunity” and this was certainly true for Uber in the past 18 months.
According to Uber, adjusted EBITDA is defined as earnings before interest tax, depreciation or amortization. It can be defined as earnings after interest, taxes and amortization. The loss could range from $25 million to $25 millions. Uber stated previously that it expects its third-quarter adjusted EBITDA to exceed $100 million.
Uber said that its adjusted EBITDA should be better than $100 million and it would make profit in the fourth.
Uber recorded 1.51 Billion trips to its platform during the second quarter. That’s an increase of 44% and 105% respectively over the quarter before. Uber claimed that the company’s drivers and couriers made an average of $7.9 billion in this quarter.
Uber and its competitors are struggling to balance supply and demand due to the coronavirus epidemic, which has caused surge prices and prolonged wait times. Khosrowshahi stated on a conference call that wait times and prices are not meeting company targets.
Khosrowshahi released a statement, “In Q2 I invested in recovery through investing in drivers. We made strong progress with monthly active drivers in the U.S. growing by nearly 420,000 between February and July.”
— Additional reporting by CNBC’s Jessica Bursztynsky.