Postmates More Than Doubles Revenue In Q2 Ahead Of Merger With Uber

Postmates More Than Doubles Revenue In Q2 Ahead Of Merger With Uber

Uber Technologies Inc (UBER) filed a Form S-4 with the U.S. Securities and Exchange Commission in connection to its Postmates Inc acquisition deal on Friday, disclosing the food-delivery company's financials.

In a best-case scenario, the management forecasts Postmates revenue growth from $997 million in 2021 to $1,496 million in 2023, and the EBITDA from $17 million in 2021 to $109 million in 2023.

What Happened: In the SEC filing, Uber reported that the Postmates revenue for the quarter ended June 30 was $160 million, which compares with the $71.39 million posted in the same period a year ago.

The net loss for the quarter was $32 million, down about 72.4% year-over-year from $116 million. At the end of Q2, Postmates held an $88 million cash position.

In the first six months this year, revenue grew almost 100% higher than the revenue for H1 2019.

Why Does It Matter: The SoftBank Corp (SFTBY)-backed tech company could turn profitable once the Postmates agreement is realized, according to Forbes. Through the deal, Uber can gain more market share in the fast-growing food delivery business and expand its outreach to more customers.

Uber announced its plans to acquire Postmates on July 5 for approximately $2.65 billion through an all-stock deal. The ridesharing company is already in the food-delivery business with Uber Eats, and combining the two could produce significant cost benefits and synergies — up to $200 million based on Uber’s estimates.

Price Movement: UBER stock gained 3.33% during Friday’s trading session at $34.46 per share.

© 2020 Benzinga does not provide investment advice. All rights reserved.

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