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The transportation company Uber increased its revenue by 14 percent to 9.23 billion dollars in the second quarter of 2023, it became clear when the results were presented before opening on Wall Street on Tuesday.
Further down in the list, however, an operating profit of 326 million dollars appears. The figure makes the three months leading up to the summer a historic quarter. It is the first time since 2014, when the company came up with its first financial results, that the company is in the red.
Over the past nine years, Uber has lost $31.5 billion on operations, in line with an aggressive growth strategy and associated expenses. This corresponds to over NOK 300 billion at today’s exchange rate.
– Strong demand, new growth initiatives and continued discipline with costs resulted in an outstanding quarter, where the number of trips increased by 22 percent, said CEO Dara Khosrowshahi in a press release.
Uber shares fell two percent in early trading on Wall Street on Tuesday, and trade for around $48. That is just under 20 percent from the peak that was reached in February 2021.
Two giants present results
Elsewhere on Wall Street, it looked like this for the key indices immediately after opening:
Article continues below advertisement The Nasdaq fell 0.5 percent. The Dow Jones hovered around zero. The S&P 500 fell 0.3 percent.
The development on the first trading day in August followed a modest rise for the three indices on Monday. All nevertheless rose above three percent in July, which for the Nasdaq and the S&P 500 was the fifth month in a row of gains. For the Dow Jones, it was the second consecutive month of growth.
Government interest rates in the US are almost unchanged from Monday. The two-year interest rate is around 4.89 per cent, while the ten-year interest rate is just over four per cent.
The market is now awaiting Amazon and Apple’s second-quarter results, which will be presented on Thursday, before labor market figures are released on Friday.
Higher guidance
In the third quarter, i.e. the current quarter, Uber further estimated that gross bookings will be between 34 and 35 billion dollars. Gross profit (ebitda) was estimated at between $975 million and $1.025 billion.
Both were well above Wall Street analysts’ expectations, writes Financial Times.
For the first six months of 2023, operating profit was $64 million, a sharp improvement from the same period last year when the company lost $1.2 billion on operations. Costs increased from $8.78 billion in the second quarter of last year, to $8.9 billion in the same quarter this year.
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According to Statista, Uber had a quarter of the market within so-called “ride hailing & taxi” in 2022, where the largest private competitor is Lyft. The latter will also present its figures in a month’s time, after announcing that it will lower its prices due to lost market share to Uber since the start of the pandemic.
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2023-08-01 13:34:52
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