Uber Technologies' (UBER) shares fell Wednesday after the ride-hailing company's second-quarter revenue missed market estimates and it provided a soft third-quarter bookings guidance.
The ride-hailing company's second-quarter revenue increased 12% to $14.19 billion, missing the FactSet-polled estimate of $14.24 billion. Adjusted earnings rose to $0.81 per share from $0.60 a year earlier, compared with Wall Street's consensus of $0.80.
Shares of the company declined 6.9% in Wednesday trade, and are down 18% so far this year.
The company forecast third-quarter bookings of $58.25 billion to $60.25 billion, with the midpoint of $59.25 billion below the consensus estimate of $59.37 billion. The guidance implies year-over-year growth of 18% to 22% on a constant currency basis.
A soft bookings guidance comes despite a stronger-than-expected performance in the June quarter, when bookings surged 24% year over year to a record $58.02 billion. The consensus indicated $57.25 billion.
Trips, which advanced 18% to 3.87 billion, continued to be the primary driver of gross bookings growth, Chief Financial Officer Balaji Krishnamurthy said in prepared remarks.
The mobility segment's bookings rose 22% annually to $28.99 billion in the second quarter, while delivery and freight climbed 26% and 25%, respectively.
Uber guided for third-quarter non-GAAP earnings of $0.84 to $0.88 per share. The outlook's midpoint trailed the Street's $0.87 estimate. The guidance represents year-over-year growth of 28% to 35%.
Separately on Wednesday, Uber and autonomous driving technology firm Wayve said Transport for London granted private hire vehicle licenses to Wayve's all-electric Ford Mustang Mach-E vehicles. Wayve's vehicles operate autonomously, but a trained driver will be onboard.
Food delivery company DoorDash (DASH) reports second-quarter earnings after market close Wednesday, while results for ride-hailing company Lyft (LYFT) are scheduled for release on Thursday.
Uber remains an attractive free cash flow play that trades at a discount to peers despite its enhanced capital expenditure in autonomous vehicles, Oppenheimer said in a note late last month. The planned acquisition of Delivery Hero "has obvious upside with cross-platform coverage and cost synergies," according to the brokerage.
In July, Uber agreed to buy Germany-based delivery platform Delivery Hero.
Price: $67.07, Change: $-4.93, Percent Change: -6.84%
