Uber Warns FX Pressure Could Weigh on Q3 Earnings
Uber Technologies projected that its adjusted earnings for the current quarter (Q3) would fall short of Wall Street expectations on Wednesday, citing that foreign exchange impacts would dampen bookings growth. The company also reiterated its commitment to significant investments in robotaxis and acquisitions. The global ride-hailing and delivery giant’s capital allocation has emerged as a significant point of interest for investors following its announcement of a $14.8-billion deal for Delivery Hero last month, which it intends to finance through existing liquidity and debt.
The company on Wednesday also outlined plans to allocate over $10 billion towards autonomous vehicles in the forthcoming years. It projected Q3 gross bookings between $58.25 billion and $60.25 billion, aligning closely with analysts’ expectations of $59.21 billion, based on data compiled by LSEG. Uber’s Q2 gross bookings reached $58.02 billion, exceeding analysts’ projections of $57.06 billion.
The business experienced widespread demand across various regions and services during the quarter, notably including travel associated with the Fifa World Cup, according to Uber CEO Dara Khosrowshahi. According to the company, over 8 million tourists utilised Uber in host cities throughout the tournament.
