Uber Technologies Inc (NYSE:UBER) recorded its first-ever operating profit after ridership increased to record levels in its second quarter.
The ride-sharing company reported better-than-expected net income in the second quarter, signaling progress on its profitability goals and moving beyond its cash-burning startup phase.
Uber generated a net income of $394 million, far exceeding the projected loss of $49.2 million, largely due to unrealized gains in equity investments. Additionally, Uber achieved its first-ever operating profit of $326 million and recorded free-cash-flow of $1.14 billion.
Uber also projected strong performance for the current quarter, with gross bookings expected to reach $34 billion to $35 billion, and adjusted earnings before interest, tax, depreciation, and amortization forecasted to be between $975 million to $1 billion, both exceeding analysts' expectations.
In a statement accompanying the results, CEO Dara Khosrowshahi credited disciplined execution, record audience, and strong engagement for these milestones and expressed confidence in sustaining strong, incremental profit generation.
However, the company's Chief Financial Officer, Nelson Chai, is stepping down effective January 5, marking a notable departure since the company went public in 2019.
Shares of Uber were up 1.4% in premarket trading in New York at $50.15.
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