Uber Emerging out of the Woods, after Releasing Upbeat Quarterly Results

Uber Technologies (UBER ) rose at the market open today, on August 1, after Q2 gross bookings rose 16% to $33.6 billion, beating consensus estimates of $33.5 billion. Gross bookings were up 18% in constant currency. Gross bookings in the travel business rose 25%, outpacing a 12% rise in delivery bookings. The mobile acceptance rate increased to 29.3% over the reporting period from 26.5% a year ago, and the delivery rate increased to 19.6% from 19.4%.

Uber's Monthly Active Platform Consumers, or MAPCs, increased by 13% to 137 million, and the total number of trips increased by 22% to 2.28 billion. Revenue rose 14% YoY to $9.2 billion, slightly missing consensus estimates. Adjusted EBITDA increased 152% YoY to $916 million. Notably, Uber (UBER) generated $1.14 billion in free cash flow during the quarter.

In terms of the company’s guidance, Uber sees Q3 gross bookings to the tune of $34 billion to $35 billion, and Q3 adjusted EBITDA of $975 million to $1.03 billion vs. $919 million consensus. Uber looks better positioned for growth than rival Lyft (LYFT) in terms of cost management and operating income profitability. Uber is slowly emerging out of the woods, and may end the current 2023 with a small net income after years of net loss-making performance.

Shares Uber Technologies (UBER) traded 1.19% higher in late premarket session to $51.75, after initially spiking by almost 4.5%.