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Michaela Vatcheva / Bloomberg via Getty Images
Key Takeaways
- Uber reports second-quarter earnings before markets open Tuesday, with analysts projecting year-over-year revenue and profit growth.
- Over $700 million in adjustments to the value of the company's investments led Uber to report a surprise net loss for the first quarter in May.
- The company announced a number of new features in the quarter, including plans to offer discounted Uber One subscriptions to college students and an extension of a Costco partnership.
Uber Technologies (UBER) reports earnings Tuesday morning, with the ride-share giant looking to improve on its performance in the first quarter, when Uber reported a surprise loss due to over $700 million in adjustments related to the company's investments.
Estimates compiled by Visible Alpha project Uber's revenue to rise to $10.56 billion from $9.23 billion a year ago. Net income is projected to rise to $652.33 million from $394 million in the second quarter of 2023.
| Analyst Estimates for Q2 2024 | Q1 2024 | Q2 2023 | |
| Revenue | $10.56 billion | $10.13 billion | $9.23 billion |
| Diluted EPS (Loss) | 31 cents | (31 cents) | 19 cents |
| Net Income (Loss) | $652.33 million | ($654 million) | $394 million |
Key Metric: Gross Bookings for Food Delivery vs. Rideshare Trips
UBS analysts in a Monday note cited data from tracking firm Sensor Tower, which showed Uber Eats performing better than Uber's namesake ridesharing platform in terms of converting monthly active users (MAUs) to daily active users over the course of the second quarter.
The analysts said they view the active user data as a "proxy metric" that can offer indications for how Uber's gross bookings will come in for a full quarter. UBS projects gross bookings for Uber Eats above consensus, while projecting rideshare deliveries, Uber's "mobility" division, below analyst consensus.
UBS on Monday raised its price target for Uber to $102 from $95, lowering its targets for Uber's competitors in the rideshare and food-delivery spaces, Lyft (LYFT) and DoorDash (DASH), to $15 and $125 from $19 and $130, respectively.
Business Spotlight: New Features and Partnerships
Uber announced a number of new features and partnerships in the quarter, with many coming at the company's annual Go-Get event in May, when it announced plans to offer discounted Uber One subscriptions to college students and an expansion of its partnership with Costco (COST).
The company also recently announced a feature to help users schedule rides, providing estimates of average wait times and prices for rides in thousands of cities worldwide.
Analysts have previously cited adoption of new features as a potential source of revenue growth for Uber. UBS analysts said Monday that updates on how Uber's new verticals are contributing to the company's results are a key factor for investors to watch for.
Uber shares were down 1.1% Tuesday to $63.05. They're up roughly 2.5% this year.
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