Uber Exceeds Revenue Estimates but Misses on Gross Bookings in Q1

In a recent financial results announcement, ride-hailing giant Uber reported that while it managed to surpass revenue expectations for the first quarter, it did not hit the target for gross bookings that analysts had estimated. Unfortunately for the company, this news was accompanied by an actual net loss, sending shares down in premarket trading. CEO Dara Khosrowshahi shared insights into Uber's financial health during an appearance on CNBC's Squawk Box.

Quarterly Financial Highlights

Uber disclosed a revenue of $10.13 billion, which edged past the $10.11 billion analysts had anticipated. However, this silver lining was clouded by the company posting a net loss of $654 million, a considerable increase from the previous year's $157 million loss in the same quarter. The loss per share stood at 32 cents, contrasting with the earnings of 23 cents per share that were expected.

The company experienced a 15% year-over-year revenue increase from $8.82 billion. But when it came to gross bookings, Uber reported $37.65 billion, falling short of the predicted $37.93 billion. The disappointing gross bookings figures signal that Uber's service uptake did not meet market expectations.

Uber's adjusted EBITDA was a different story, hitting $1.38 billion, an 82% rise from last year and slightly above StreetAccount analyst predictions of $1.31 billion. The company's forecast for the second quarter indicates expected gross bookings of $38.75 billion to $40.25 billion, with anticipated adjusted EBITDA ranging from $1.45 billion to $1.53 billion.

Operational Performance

On the operational front, Uber reported positive metrics. The number of monthly active platform consumers reached 149 million in the first quarter, marking a 15% year-over-year increase. Moreover, the platform completed 2.6 billion trips during this period, rising by 21% from the comparable period last year.

The company saw impressive growth in its mobility segment, recording gross bookings of $18.67 billion, a 25% increase year over year. On the other hand, the delivery segment's gross bookings grew by 18% year over year, amounting to $17.7 billion.

As for revenues, the mobility segment made $5.63 billion, a 30% increase from the year before, while the delivery segment observed a revenue of $3.21 billion, marking a modest 4% increase year-over-year.

Finally, Uber's freight business experienced a dip, with sales of $1.28 billion for the quarter, representing an 8% decrease from the year prior.

Future Outlook

Despite the mixed financial results, Khosrowshahi remains optimistic about the future. He attributes robust demand for Uber's services to an improving marketplace, the shift in consumer spending from goods to services, and the growing trend for on-demand transportation and delivery. Uber's strategies are set to focus on penetrating core use cases and capturing more daily trips to drive user growth.

Uber, Revenue, Bookings