TLDR
- Adjusted earnings per share reached $0.72, surpassing the consensus estimate of $0.69
- Gross bookings climbed 21% year-over-year to $53.7 billion, exceeding the anticipated $52.8 billion
- Total revenue increased 14% to $13.2 billion, marginally below the Street’s $13.28 billion projection
- Platform trips expanded 20% annually to 3.64 billion; active monthly users increased 17%
- UBER shares surged 8.7% during premarket hours following the earnings announcement
Shares of Uber rallied 8.7% in Wednesday’s premarket session following the release of first-quarter results that exceeded Wall Street expectations on both earnings and platform bookings.
The ride-hailing giant delivered adjusted earnings per share of $0.72, marking a significant improvement from $0.50 in the same period last year and topping the analyst consensus of $0.69. Total revenue climbed 14% to reach $13.2 billion, falling just short of the Street’s $13.28 billion target.
The standout metric was gross bookings, which jumped 21% to $53.7 billion, comfortably beating the $52.8 billion figure Wall Street had been anticipating.
Prior to 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. Reported profit fell to $263 million, equivalent to $0.13 per share, compared with $1.78 billion in the prior-year period. The decline was primarily attributed to a $1.5 billion negative impact from equity investment revaluations.
Chief Executive Dara Khosrowshahi recognized that the quarter unfolded amid challenging conditions — including geopolitical uncertainty, elevated fuel costs, and adverse weather conditions. Nevertheless, the company’s fundamental business demonstrated resilience.
Total platform trips increased 20% from the previous year to 3.64 billion. Monthly active platform consumers grew 17%. Growth was broad-based across both the mobility and delivery divisions, with geographic diversification rather than dependence on any single region.
Freight Returns to Growth
An under-the-radar highlight in the quarterly report was Uber Freight’s performance. The division achieved growth for the first time in almost two years — a development Khosrowshahi highlighted as an encouraging early indicator.
While it won’t significantly impact overall results immediately, it eliminates a persistent weakness that had weighed on the broader business.
Regarding artificial intelligence and self-driving technology, Uber introduced an AI-powered assistant for its driver network and revealed 10 new or enhanced autonomous vehicle collaborations throughout the quarter. These initiatives represent strategic long-term investments rather than immediate revenue catalysts.
Q2 Guidance Comes in Ahead of Estimates
Looking ahead to the second quarter, Uber projected adjusted earnings per share in the range of $0.78 to $0.82. The lower bound aligns with current analyst expectations.
The company’s gross bookings forecast for Q2 sits between $56.25 billion and $57.75 billion, exceeding the Street’s $56.17 billion estimate.
The forward guidance indicates management’s confidence that first-quarter momentum will persist into the current period.
Additional noteworthy items in the report included Uber’s freight division returning to positive growth and the announcement of 10 new autonomous vehicle partnerships.
