Uber Shares Drop After Revenue Miss

Uber stock
IMG CR. Getty images

Uber’s shares dropped by more than 10% on Wednesday after the company reported a revenue miss for the second quarter of 2023. Despite posting its first operating profit, Uber’s revenue came in below analysts’ expectations, as the company’s ride-hailing business continued to be impacted by the ongoing pandemic.

Uber’s revenue for the quarter was $5.8 billion, up 34% year-over-year, but below analysts’ expectations of $6.0 billion. The company’s operating profit was $1.1 billion, its first since going public in 2019. However, Uber’s adjusted earnings per share of $0.20 missed analysts’ expectations of $0.23.

The company’s ride-hailing business was the main driver of the revenue miss. Ride-hailing revenue was $2.7 billion, up 30% year-over-year, but below analysts’ expectations of $2.8 billion. Uber’s food delivery business, however, continued to grow, with revenue of $3.1 billion, up 54% year-over-year.

Uber’s shares were down by more than 10% in after-hours trading following the earnings report. The company’s CEO, Dara Khosrowshahi, said that the revenue miss was due to a number of factors, including the ongoing pandemic, the war in Ukraine, and rising inflation.

“We’re facing some headwinds,” Khosrowshahi said in a conference call with analysts. “But we’re confident in our long-term growth prospects.”

Uber is not the only tech company that has reported a revenue miss in recent months. Meta, Twitter, and Netflix have all reported revenue misses in recent quarters. The ongoing pandemic and the war in Ukraine have had a significant impact on the tech industry, as have rising inflation and interest rates.

Despite the revenue miss, Uber’s CEO remains confident in the company’s long-term prospects. “We’re still in the early innings of our journey,” Khosrowshahi said. “We’re confident that we’ll continue to grow and deliver value for our shareholders.”

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