From TechCrunch: The question of whether Uber would be able to self-support was at least partially answered Tuesday with the company’s second quarter earnings report.
In its Q2 digest, the American ride-hailing and food delivery giant reported positive free cash flow, indicating that it can now self-fund, putting to rest — at least in today’s market — lingering concerns that it would one day run out of cash.
The former unicorn and present-day public company traded sharply higher in pre-market trading after reporting its second-quarter financial performance. Shares are now up 14.4% as of 10:30 a.m. EDT.
That Uber was able to generate free cash flow in the second quarter should not be entirely surprising; the company’s first quarter numbers included positive operating cash flow and sharply less negative free cash flow. Operating cash flow indicates how much a business’s operations consumed, or generated cash, while free cash flow is the same metric, less capital expenses.
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