Uber (NYSE:UBER) Reports Bullish Q2, Stock Jumps 15.4%

Adam Hejl /
2022/08/02 7:07 am EDT

Ride sharing and on demand delivery service Uber (NYSE: UBER) reported results ahead of analyst expectations in the Q2 FY2022 quarter, with revenue up 105% year on year to $8.07 billion. Uber made a GAAP loss of $2.6 billion, down on its profit of $1.11 billion, in the same quarter last year.

Is now the time to buy Uber? Access our full analysis of the earnings results here, it's free.

Uber (UBER) Q2 FY2022 Highlights:

  • Revenue: $8.07 billion vs analyst estimates of $7.37 billion (9.49% beat)
  • EPS (GAAP): -$1.33
  • Free cash flow of $382 million, up from negative free cash flow of $47 million in previous quarter
  • Gross Margin (GAAP): 36.1%, up from 35.5% same quarter last year
  • Monthly Active Platform Consumers: 122 million, up 21 million year on year

“Last quarter I challenged our team to meet our profitability commitments even faster than planned—and they delivered,” said Dara Khosrowshahi, CEO.

Born out of a winter night thought: "What if you could request a ride from your phone?" Uber (NYSE: UBER) operates a global network of on demand services, most prominently ride hailing and food delivery, and freight.

The iPhone changed the world, ushering in the era of the “always-on” internet and “on-demand” services - anything someone could want is just a few taps away. Likewise, the gig economy sprang up in a similar fashion, with a proliferation of tech-enabled freelance labor marketplaces, which work hand and hand with many on demand services. Individuals can now work on demand too. What began with tech enabled platforms that aggregated riders and drivers has expanded over the past decade to include food delivery, groceries, and now even a plumber or graphic designer are all just a few taps away.

Sales Growth

Uber's revenue growth over the last three years has been very strong, averaging 38.8% annually.

Uber Total Revenue

This quarter, Uber beat analyst estimates and reported a very impressive 105% year on year revenue growth.

Ahead of the earnings results the analysts covering the company were estimating sales to grow 31.5% over the next twelve months.

In volatile times like these we look for robust businesses with strong pricing power. Unknown to most investors, this company is one of the highest-quality software companies in the world, and their software products have been the default standard in critical industries for decades. The result is an impressive business that is up an incredible 18,152% since the IPO. You can find it on our platform for free.

Usage Growth

As a gig economy marketplace, Uber generates revenue growth by a combination of the volume of services users order and how much commission it earns.

Over the last two years the number of Uber's paying users, a key usage metric for the company, grew 17.7% annually to 122 million users. This is a solid growth for a consumer internet company.

Uber Monthly Active Platform Consumers

In Q2 the company added 21 million paying users, translating to a 20.7% growth year on year.

Key Takeaways from Uber's Q2 Results

With a market capitalization of $48.3 billion, more than $4.39 billion in cash and with free cash flow over the last twelve months being positive, the company is in a very strong position to invest in growth.

We were impressed by the strong free cash flow Uber delivered this quarter. And we were also excited to see that it outperformed Wall St’s revenue expectations. Zooming out, we think this impressive quarter should have shareholders feeling very positive. The company is up 15.4% on the results and currently trades at $28.4 per share.

Uber may have had a good quarter, so should you invest right now? It is important that you take into account its valuation and business qualities, as well as what happened in the latest quarter. We look at that in our actionable report which you can read here, it's free.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.