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Uber Posts Q1 Revenue Beat Despite Unexpected Net Loss

Uber revealed its first-quarter results on Wednesday, surpassing analysts’ revenue estimates by a narrow margin
May 8, 2024

Uber reported its first-quarter results on Wednesday, slightly surpassing analysts’ revenue estimates. However, the ride-hailing company posted an unexpected net loss, causing its shares to fall more than 6% in premarket trading.

Here’s a breakdown of Uber's first-quarter performance:

- Loss per share: 32 cents, compared to the expected earnings of 23 cents by LSEG.

- Revenue: $10.13 billion, exceeding the $10.11 billion expected by LSEG.

While Uber’s revenue saw a 15% growth from the previous year, reaching $8.82 billion, the company reported $37.65 billion in gross bookings for the period, falling short of the $37.93 billion expected by analysts.

The net loss widened to $654 million, or a loss of 32 cents per share, from $157 million, or a loss of 8 cents per share, in the same quarter last year. Uber attributed this loss to a $721 million net headwind from unrealized losses related to the reevaluation of its equity investments.

Uber CEO Dara Khosrowshahi clarified in an interview with CNBC’s “Squawk Box” that the company's move to a loss had “nothing to do with the operating business,” and that they don't expect similar losses going forward.

Uber reported adjusted EBITDA of $1.38 billion, an 82% increase year over year, slightly above the $1.31 billion expected by analysts.

Looking ahead to the second quarter, Uber expects gross bookings between $38.75 billion and $40.25 billion, with adjusted EBITDA projected to be between $1.45 billion and $1.53 billion. This is slightly lower than analysts' estimates.

Uber's monthly active platform consumers reached 149 million in the first quarter, up 15% year over year from 130 million. The number of trips completed on the platform during the period increased by 21% year over year, totaling 2.6 billion trips.

Despite the unexpected loss, Uber's largest business segments performed well:

- Mobility (gross bookings): $18.67 billion, up 25% year over year.

- Delivery (gross bookings): $17.7 billion, up 18% year over year.

Uber's mobility segment reported $5.63 billion in revenue, up 30% from the previous year, while its delivery segment reported $3.21 billion in revenue, a 4% increase from the previous year.

The company's freight business, however, experienced a decrease in sales, booking $1.28 billion for the quarter, down 8% year over year.

In conclusion, despite the unexpected loss, Uber’s revenue beat estimates, driven by strong performance in its mobility and delivery segments. The company remains optimistic about its future growth prospects.

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