Ride-sharing company Uber reported second quarter financial results that were below analyst’s expectations even if the company posted its first quarter of free cash flow over $1 billion and its first GAAP operating profit.

Revenue grew 14% YoY to $9.2 billion vs. $9.33 billion expected by analysts with Gross Bookings increase 16% year-over-year (“YoY”) to $33.6 billion, Mobility Gross Bookings of $16.7 billion (+25% YoY) and Delivery Gross Bookings of $15.6 billion (+12% YoY). Trips during the quarter grew 22% YoY to 2.3 billion, or approximately 25 million trips per day on average.

Income from operations was $326 million, up $1.0 billion YoY and $588 million quarter-over-quarter (“QoQ”).

Net income attributable to Uber Technologies was $394 million, which includes a $386 million benefit (pre-tax) primarily due to net unrealized gains related to the revaluation of Uber’s equity investments.

Adjusted EBITDA of $916 million, up $552 million YoY. Adjusted EBITDA margin as a percentage of Gross Bookings was 2.7%, up from 1.3% in Q2 2022. Incremental margin as a percentage of Gross Bookings was 12.2% YoY.

Net cash provided by operating activities was $1.2 billion and free cash flow, defined as net cash flows from operating activities less capital expenditures, was $1.1 billion.

Unrestricted cash, cash equivalents, and short-term investments were $5.5 billion at the end of the second quarter.

“Robust demand, new growth initiatives, and continued cost discipline resulted in an excellent quarter, with trips up 22% and a GAAP operating profit, for the first time in Uber’s history,” said Dara Khosrowshahi, CEO.

“These results also translated into strong driver and courier engagement, with 6 million drivers and couriers earning a record $15.1 billion during the quarter.”

“The unique power of the Uber platform and the team’s relentless focus on profitable growth was on full display in Q2, with record profitability and over $1 billion of quarterly free cash flow,” said Nelson Chai, CFO.

For the 3rd quarter 2023 Uber expects Gross Bookings of $34.0 billion to $35.0 billion and Adjusted EBITDA of $975 million to $1.025 billion.