Technology
Wednesday, May 8th, 2024 4:41 pm EDT
Key Points
- Uber’s first-quarter results exceeded revenue estimates but incurred an unexpected net loss, leading to a 5% decline in shares during early trading.
- Despite revenue growth of 15% from the previous year, the company fell short of analysts’ expectations for gross bookings, reporting $37.65 billion instead of the anticipated $37.93 billion.
- Uber’s mobility and delivery segments both saw growth in gross bookings, with mobility reaching $18.67 billion (up 25% year over year) and delivery reaching $17.7 billion (up 18% year over year), although revenue margins were negatively impacted by business model changes.
Uber reported its first-quarter results, which slightly exceeded revenue estimates but included an unexpected net loss, causing shares to drop 5% in early trading. Despite posting revenue of $10.13 billion, a 15% increase from the previous year, the company fell short of analysts’ expectations for gross bookings, reporting $37.65 billion instead of the anticipated $37.93 billion. The net loss widened to $654 million, or 32 cents per share, compared to a loss of $157 million in the same quarter last year, primarily due to unrealized losses from the reevaluation of equity investments. CEO Dara Khosrowshahi clarified that this loss wasn’t reflective of the operating business and was largely attributable to the market. Uber’s adjusted EBITDA of $1.38 billion surpassed expectations, marking an 82% year-over-year increase. For the second quarter, Uber projects gross bookings between $38.75 billion and $40.25 billion, with adjusted EBITDA expected to range from $1.45 billion to $1.53 billion. Monthly active platform consumers reached 149 million, up 15% year over year, with 2.6 billion trips completed. The mobility segment saw $18.67 billion in gross bookings, up 25%, while the delivery segment reported $17.7 billion, up 18%. Mobility revenue reached $5.63 billion, a 30% increase from the previous year, while delivery revenue amounted to $3.21 billion, up 4%. However, both segments experienced negative impacts on revenue margins due to business model changes. The freight business booked $1.28 billion in sales, remaining flat quarter over quarter but decreasing by 8% year over year. Khosrowshahi emphasized Uber’s focus on enhancing user growth and expanding into new consumer segments amidst the ongoing demand for on-demand transportation and delivery services.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/05/08/uber-uber-q1-2024-earnings.html
