Uber wants to be ‘profitable for every quarter going forward’ after a strong Q2

Uber Technologies Inc (NYSE: UBER) just reported its first-ever quarterly operating profit. Shares are still down about 6.0% today.

Why is Uber stock down today?

The stock is responding primarily to revenue that came in shy of Street estimates.

Much of that weakness was related to the freight business that tanked 30% on a year-over-year basis as consumers continued to prioritise services over goods in the recently concluded quarter. But CEO Dara Khosrowshahi said today on CNBC’s “Squawk Box”:

He doesn’t see rival Lyft Inc as a meaningful threat either.

Uber issues upbeat third-quarter guidance

On the plus side, though, Uber now forecasts about a billion-dollar in adjusted EBITDA and up to $35 billion of gross bookings in Q3, as per the earnings press release.

Analysts, in comparison, had called for $927 million and $34.1 billion respectively. According to the Chief Executive:

Wall Street currently has a consensus "buy" rating on Uber stock.

Notable figures in Uber’s Q2 earnings report

• Net income printed at $394 million or 18 cents a share
• Had $2.6 billion of net loss ($1.33 per share) a year ago
• Revenue went up 14.5% year-on-year to $9.23 billion
• Consensus was a cent of loss on $9.34 billion in revenue

Despite the sell-off today, Uber shares are still up a whopping 80% year-to-date. CEO Khosrowshahi added:

Uber’s vision for the future

Uber Technologies surpassed the $1.0 billion market in terms of free cash flow in its second quarter. Khosrowshahi also told CNBC today:

In Q2, Uber noted a 14% and a 38% annualised growth in its delivery and mobility businesses, respectively. Its bookings climbed to $33.6 billion – roughly in line with expectations.

Separately, Uber Technologies Inc said Nelson Chai – its Chief Financial Officer will step down on January 5^th. Search for a replacement has already begun.