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Uber revenue up 105% year-over-year as its stock explodes to the upside

Uber revenue up 105% year-over-year as its stock explodes to the upside

Uber Technologies (NYSE: UBER) surged more than 13% in premarket trading after releasing its earnings report on August 2. The reported earnings topped expectations on Wall Street, as the firm now generates free cash flow.  

Meanwhile, Andrew Ross Sorkin broke down Uber’s earnings on CNBC’s Squawk Box, focusing on the revenue surge and explaining why there was a loss and what it is attributable to. 

“What you’re really looking at in terms of the losses, is all those different investments they have in a number of different businesses. Including Aurora, Grab, and their stakes in Zomato and also stock based compensation expense.”  

He also added: 

“But you look at revenue year-over-year (YoY) up a 105%; I mean, that’s something. Gross booking has grown 33% YoY. There’s a net cash up now, which was $439 million that’s up $780 million YoY. And their free cash flow <…> They’re saying was $382 million, that’s up $780 million they say YoY.”

Balanced growth 

In a statement, Dara Khosrowshahi, Uber’s CEO, explained that he challenged the team to provide great profitability for this quarter. 

“Last quarter, I challenged our team to meet our profitability commitments even faster than planned—and they delivered.”

He then added:

“Importantly, they delivered balanced growth: Gross Bookings up 36 percent to a $116 billion run-rate, Adjusted EBITDA significantly above our guidance, and $382 million in free cash flow, all on a platform that’s larger than ever, with the number of consumers and earners using Uber now both at all-time highs.”

Uber chart and analysis 

In the last month, UBER has been trading in the $20.59 to $27.95 range, with the short-term trend now becoming positive, but the long-term trend is still negative as the stock is down 44% year-to-date (YTD). 

UBER  20-50-200 SMA lines chart. Source. data. See more stocks here.

Uber competitor Lyft (NASDAQ: LYFT) also rose nearly 7% on the back of the firm’s solid results. Further, the talk of free cash flows could get investors interested in UBER again, possibly returning it to its old glory days when it went public for the first time in 2019.

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