Uber earnings preview: Uber's Q2 2020 earnings to detail full impact of the coronavirus on the ride-sharing industry

UBER) will report its Q2 2020 earnings after the bell on Thursday with much of the focus on the impact the coronavirus pandemic has had on the business and what the recovery for the firm ride-sharing giant might look like.

These are the top numbers to watch for in the report, including analyst expectations as compiled by Bloomberg and Uber’s performance in the same quarter in 2019.

• Gross bookings: $10.4 billion expected versus $15.8 billion in Q2 2019.

• Rides gross bookings: $3.96 billion expected.

• Eats gross bookings: $6.23 billion expected.

• Losses per share: $0.84 expected versus $4.72 in Q2 2019.

Uber’s quarter is likely to be a tale of two businesses. The ride-sharing side is expected to see an incredible collapse compared to Q2 2019 results, as the full shock of the pandemic will become clear for the company.

The majority of Uber’s Q1 wasn’t hurt by the coronavirus, as lockdowns went into effect in mid-March. The quarter itself ended March 31, so the company had the benefit of several weeks without full lockdowns to pad its results.

But Q2 will be the first quarter during which Uber operated under full coronavirus lockdowns. And with users forced to stay home or a lack of available entertainment options available such as bars, movies, and concerts, there was significantly less need for Uber rides.

On the flip side, with restaurants closed to in-person dining in many states, Uber’s Eats business likely saw a large uptick in use.

“We estimate Rides/Eats Bookings growth in Q2 to be -75%/+101% Y/Y representing a contraction/acceleration based on management’s Q2 update,” RBC Capital Markets Mark Mahaney wrote in an analyst note ahead of Uber’s earnings.

“On 7/6, Uber disclosed Q2 Rides Gross Bookings declined 75% Y/Y, but have declined less than 60% in “recent days” with Eats generating 100%+ Y/Y growth,” he added.

LYFT), took drastic cost-cutting measures to firm-up the overall business.

cut roughly 14% of its workforce, or 3,700 jobs, primarily in its customer support and recruiting divisions. Lyft, meanwhile, announced it was cutting its workforce roughly 17%, or 982 jobs, and furloughing another 288 employees.” data-reactid=”41″>In May, Uber filed paperwork with the SEC indicating that it was to cut roughly 14% of its workforce, or 3,700 jobs, primarily in its customer support and recruiting divisions. Lyft, meanwhile, announced it was cutting its workforce roughly 17%, or 982 jobs, and furloughing another 288 employees.

Uber will have a long road to recovery ahead. But according to Wedbush analyst Dan Ives, the company could see a boost from travelers wary of taking public transit options such as subways and buses.

Ives said he believes, “a consumer dynamic that is becoming commonplace across cities both in the US and internationally is many steering clear of mass transportation given health concerns and lack of comfort taking subways/buses and thus could be an incremental demand driver for ride-sharing vendors over the next few quarters (at least).”

For the services to truly bounce back, though, cities and businesses will need to fully reopen, and that’s not likely to happen anytime soon as the pandemic continues to rage across the U.S.

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