Uber turns positive for the first time and shares soar

Aug 2 (Reuters) – Uber Technologies Inc (UBER.N) reported positive quarterly cash flow for the first time on Tuesday and forecast higher-than-expected operating profit for the third quarter, betting on continued demand for its food transportation and delivery services. .

Shares of Uber, which have lost more than 40% this year, jumped 15% to $28.41 in premarket trading and contributed to an 8% gain in shares of rival Lyft Inc.

Uber generated free cash flow of $382 million in the second quarter, beating analysts’ expectations of $263.2 million as travel exceeded pre-pandemic levels, boosted by office reopenings and a increase in travel demand.

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The number of drivers and delivery agents on its platform rose 31% to an all-time high of nearly 5 million, allaying fears that soaring gas prices are deterring them from signing up with of the company.

“It’s true: more people are earning on Uber today than before the pandemic,” Chief Executive Dara Khosrowshahi said.

Growth in its delivery business was slowing, but Uber expected orders to become the norm for consumers as it continues to add new partners.

Revenue from the delivery segment rose 37% to $2.69 billion, while revenue from ride-sharing business jumped 120% to $3.55 billion in the quarter ended June 30.

Analysts expected revenue of $2.58 billion for delivery and $2.93 billion for ridesharing.

Gross bookings, or the total value of bookings made on its platform, rose 33% to $29.1 billion.

Adjusted EBITDA was $364 million, beating estimates of $257.89 million.

It now expects adjusted EBITDA of between $440 million and $470 million for the third quarter, well above analysts’ forecast of $383.95 million, according to IBES data from Refinitiv.

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Reporting by Nivedita Balu in Bengaluru; Editing by Anil D’Silva

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