Aug 2 (Reuters) – Uber Technologies Inc (UBER.N) reported positive quarterly cash flow for the first time ever on Tuesday and forecast third-quarter operating profit above estimates, as more people rely on its services for transport and ordering in food.
The company’s stock surged 15% to $28.2 and helped push shares of Lyft Inc (LYFT.O) by 11% and DoorDash (DASH.N) by 4%.
Uber generated free cash flow of $382 million in the second quarter, topping analysts’ expectations of $263.2 million, as trips exceeded levels seen before the pandemic, boosted by office reopenings and a surge in travel demand.
The company also added more drivers and delivery agents to its fleet in the quarter, taking their total number to an all-time high of about 5 million and allaying concerns that soaring gas prices were deterring them from signing up.
“We have a very strong flow of new drivers who are signing up, coming on to earn,” Chief Executive Officer Dara Khosrowshahi said, adding that more than 70% of new drivers opted to join Uber to manage a hit from inflation and rising costs of living.
At its delivery business, which includes Uber Eats, growth slowed from the prior quarter but the company expects ordering in to become a habit for consumers.
Revenue from Uber’s delivery segment rose 37% to $2.69 billion, while that of ride-share business surged 120% to $3.55 billion in the quarter ended June 30, both surpassing Wall Street expectations.
Lyft is scheduled to report results on Thursday.
Uber’s net loss was $2.6 billion, largely hurt by investments in companies such as India’s Zomato (ZOMT.NS). It is likely to sell its stake in the Indian food-delivery firm on Wednesday, a source told Reuters.
Uber’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were $364 million, surpassing estimates of $257.89 million, according to IBES data from Refinitiv.
It now expects adjusted EBITDA of $440 million-$470 million, also above estimates of $383.95 million.
