Uber is now a profitable, cash-generating machine

If you look at the market’s reaction to Uber’s quarterly results out this morning, you might think the company performed poorly. The stock is down about 6%, most likely because the company missed the market’s expectations for quarterly revenue by about $100 million.

However, despite the expectations gap, it was a good quarter for the ride-hailing company, which finally posted a GAAP operating profit in addition to other profitability benchmarks that indicate all the years of investing in its business are paying off.

The Exchange explores startups, markets and money.

Read it every morning on TechCrunch+ or get The Exchange newsletter every Saturday.

In fact, Uber seems to be firing on all cylinders across most of its operating units, leading it to forecast revenue for Q3 2023 ahead of analysts’ expectations.

One could argue that the company’s results bode well for its U.S. rival Lyft, but the latter’s shares are trending even lower than Uber’s, indicating that the market is not convinced that the smaller company will report strong results.

This morning, let’s dig into Uber’s results, check how the stock market is thinking about the company, and then close with notes on what we might see from Lyft when it reports in around a week’s time.

Finally, a profit