Despite a dip in growth rates, Uber’s recently released Q2 financial results show a company on course to make $10 billion USD this year.
Uber reported on its Q2 financial results this week, revealing a strong net revenue of $2.7 billion USD despite a lag in growth rate.
As a private company, Uber is not required to publicly release its financial results, but it has elected to share details with the media. The company told CNBC that net revenue was up 51 percent from last year’s Q2, while gross bookings were up 41 percent year-over-year at $12 billion.
Since the company’s Q1 results showed a net revenue up 67 percent year-over-year and gross bookings up 55 percent year-over-year, these numbers represent a noticeable slowing in Uber’s rate of growth. The company also made an adjusted EBITDA loss of $404 million, which is down 24 percent year-over-year but 32 percent higher than in Q1. Despite this decline, Uber is still on course to make over $10 billion in revenue for the year.
Uber began as a ride-sharing startup in March 2009. Less than a decade later, it is a major multinational offering services throughout 65 countries and over 600 cities. Its spinoffs include the successful food delivery service Uber Eats, which continues to grow at a rapid rate. Overall, Uber’s strong Q2 results attest to its continuing popularity; its lagging revenue and bookings growth by no means spells a downturn in the business.
Dara Khosrowshahi, who took over as CEO in 2o17 after a period of bad press and criticism for Uber, told CNBC that “we’re deliberately investing in the future of our platform.” He cited “big bets like Uber Eats; congestion and environmentally friendly modes of transport like Express Pool, e-bikes and scooters; emerging businesses like Freight; and high-potential markets in the Middle East and India.”
Gross cash on hand at the close of Q2 was $7.3 billion, up $1 billion from Q1.
Since the company plans to go public in 2019, there may be extra attention on its earnings and growth in upcoming quarters.
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