Key Highlights
- Adjusted earnings per share reached $0.72, surpassing the analyst consensus of $0.69
- Gross bookings climbed 21% year-over-year to $53.7 billion, exceeding projections of $52.8 billion
- Total revenue increased 14% to $13.2 billion, narrowly missing the $13.28 billion Street estimate
- Total trips climbed 20% from last year to 3.64 billion; active monthly users increased 17%
- UBER shares soared 8.7% during premarket hours following the earnings announcement
Shares of Uber rallied 8.7% in Wednesday’s premarket session following the ride-hailing giant’s release of first-quarter results that exceeded Wall Street expectations, particularly in gross bookings performance.
The company delivered adjusted earnings per share of $0.72, marking a substantial improvement from $0.50 in the same quarter last year and topping the Street’s $0.69 estimate. Total revenue expanded 14% to reach $13.2 billion, falling slightly below the anticipated $13.28 billion.
The standout metric proved to be gross bookings, which jumped 21% to hit $53.7 billion—significantly above the $52.8 billion analyst projection.
Heading into this earnings release, UBER shares had declined 11% year-to-date, leaving investors hungry for positive news.
On a GAAP basis, net income painted a less rosy picture. Profit fell to $263 million, translating to $0.13 per share, down sharply from $1.78 billion in the prior-year period. The decline stemmed primarily from a $1.5 billion negative impact related to equity investment revaluations.
Chief Executive Dara Khosrowshahi noted the quarter unfolded amid challenging conditions including geopolitical uncertainty, elevated fuel costs, and adverse weather patterns. Nevertheless, the company’s fundamental operations remained resilient.
The platform processed 3.64 billion trips during the quarter, representing 20% year-over-year growth. Monthly active platform consumers expanded 17%. Growth came from both the mobility and delivery divisions, with contributions spread across multiple geographic regions rather than concentrated in any single market.
Freight Division Shows Signs of Recovery
Among the less-publicized aspects of the quarterly report was Uber Freight’s performance. The division posted growth for the first time in almost two years—a development Khosrowshahi highlighted as an encouraging indicator.
While the freight segment won’t significantly impact overall results immediately, its return to expansion eliminates a headwind that had weighed on the broader business.
Regarding artificial intelligence and autonomous vehicle initiatives, Uber introduced an AI-powered assistant for drivers and announced 10 new or expanded autonomous vehicle collaborations throughout the quarter. These represent strategic long-term investments rather than immediate revenue catalysts.
Second Quarter Forecast Exceeds Wall Street Projections
Looking ahead to Q2, Uber provided adjusted EPS guidance of $0.78 to $0.82. The lower bound aligns with current analyst consensus.
The company projected gross bookings for the second quarter between $56.25 billion and $57.75 billion, surpassing the Street’s $56.17 billion estimate.
The forward guidance indicates management anticipates sustained momentum from the first quarter continuing into the current period.
The freight division’s return to positive growth and expansion of autonomous vehicle partnerships to 10 new collaborations represented additional noteworthy developments within the quarterly results.
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