Will it be all roses and flowers for Uber?

11 August 20239 months ago babelfish

In the second quarter of 2023, Uber grew mainly in ride-hailing, but there are signs of a slowdown. The analysis of the BG Saxo Study Centre

Uber reported Q2 earnings last week and showed a 14% rise in revenue, though growth has slowed. The post-pandemic rebound has normalized and its freight business has declined.

HOW UBER'S REVENUES ARE PERFORMING, INDUSTRY BY INDUSTRY

Uber's biggest growth in the quarter was in ride-hailing with revenue up 38%, food delivery revenue up 12%, while it saw a 30% decrease in its freight service. Uber has also faced higher costs, as it has spent on incentives to attract new drivers.

THE FIRST NET INCOME

The company finally made a net profit for the first time ever . In fact, it posted its first operating profit of $326 million compared with a $2.6 billion loss a year earlier and now the outlook looks promising.

BLOOMBERG'S PREDICTIONS

According to Bloomberg , Uber is on track to generate $5 billion in EBITDA in 2024. The company's focus on divesting noncore businesses and growing core ones offers significant near-term potential. Strong liquidity and short debt maturities support its growth ambitions as the company moves towards its goal of achieving an Investment Grade rating.

Of the 50 analysts consulted by Bloomberg , 45 have a buy recommendation and 4 have a keep recommendation, while only one is decidedly negative on future prospects.

This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/uber-utili-secondo-trimestre-2023/ on Fri, 11 Aug 2023 05:43:37 +0000.