Uber reported mixed second quarter results as the ride-hailing company’s mobility bookings fell 75% to $3.05B. However, Uber’s delivery bookings were up 106% to $6.96B. The Final Round panel breaks down the details.
- Yeah, well, we will certainly see about that. But I want to get to some breaking news that we have here after hours. Uber is out with its highly-anticipated earnings report. Miles has the numbers for us. Miles.
- Yeah, let's go through the quarter here for Uber, a very interesting one for the company. So let's start with the adjusted EBITDA loss. That was narrower than expected, $837 million for the company against $884 that was expected by the Street.
And I think we-- so the revenue, $2.24 four billion against $1.82 expected there. But bookings is where all the action is at. Very interesting quarter for Uber. Delivery bookings, this is basically the Uber Eats business, $6.96 billion, almost $7 billion in the quarter, up over 100%.
The Street was expecting something closer to $6.2 billion. On the ridesharing side, bookings were just over $3 billion, $3.05 billion. The Street was looking for something closer to $4 billion. So an overall miss on the gross bookings when you combine the two units. But a big beat on the delivery side, a miss on the ridesharing side.
So again, I think that kind of tells the whole story of Uber's business right now. We know they're going so big into the delivery business. But we had talked in recent quarters about how the ride sharing was where there was a clearer path to being profitable on an adjusted EBITDA basis. The stock is down 2% right now, I think on a little bit of that mix, I guess we could say, in revenues. But certainly, it appears the delivery side of the business performing at a very high level.
- Yeah, it's certainly interesting here. And Andy, just taking a look at these numbers, I mean, the question going into this quarter, no doubt, was whether or not the ridesharing business will be able to recover at least a little bit. But when you take a look at these numbers, it does not seem to be that that is the case. I mean, the pandemic here driving a huge loss for the company. Uber Eats able to offset a little bit of that loss. But again, the 75% drop in ridesharing bookings obviously a huge concern here for Uber going forward.
- Yeah. You know, it's funny, Shawna. I mean, maybe this company should become a driverless food service company entirely. You know, I'm being facetious. But it's really an interesting dynamic, as Myles outlined. And, you know, we think about Uber very much as a Silicon Valley company, as a digital technology company. And it really is. But let's not forget, I mean, of course, this has huge exposure to the real world. And, you know, it's very much, in one sense, an old-school company in that it has myriad person-to-person contacts and is very much based on that.
And you know my old line, Shawna. If your business is predicated on convening people, you're not in a good place. Now, this is convening people in sort of a different way. It's not Yankee Stadium. But still, that risk is there. And it's very much front and center here in this earnings report.
- Having said that, what we've learned from these companies over the last several months is just how quickly they pivot. And Uber is one of those companies that has really tried to ride the wave, especially on the [INAUDIBLE] side of things. You know, and the numbers really spell it out, right? You look at the big miss on rides gross bookings, but then the big beat on Eats, certainly shows the transition this company is making.
I think it's going to be interesting to hear what Derek [INAUDIBLE] has to say about that PostMates acquisition, though. Because that, to me, suggests that there is a doubling down on the Eats side, especially given the uncertainty around the virus, and how many people are actually going to be taking these Uber rides. So that, I think, is something to watch when we get the call later.
- They're still losing money. I mean, look, it's great that the Eats business is doing well. More people than ever in their house getting food delivered. And they're still losing money. You're going to go back to some of the questions. And Andy said this company is great when it's just a bunch of, you know, driverless cars going around delivering food. And that really is where the promise of the company eventually probably lies. And that is very far off.
So yes, they've got, you know, some scale. They've got PostMates. But they continue to lose money.
- Yeah, they do continue to lose money. You can see the Street not satisfied with these results with the stock off. Just around [INAUDIBLE] percent after these numbers crossed the wires. But again, I think one of the big focuses in this earnings call tonight, in addition to whether or not they're seeing any sort of rebound in their ridesharing business. But of course, I think the big focus is going to be their Eats business, that July acquisition of PostMates that Akiko was talking about. And any commentary there just in terms of how they see the PostMates business fitting into their Eats business. And any room for growth in that, I think, will be a big focus for investors here in just around less than an hour from now when we get that earnings call underway.