TLDR
- Adjusted earnings per share reached $0.72, surpassing the analyst consensus of $0.69
- Gross bookings climbed 21% to reach $53.7 billion, exceeding the projected $52.8 billion
- Revenue increased 14% to $13.2 billion, falling slightly below the $13.28 billion Street estimate
- Total trips expanded 20% year-over-year to 3.64 billion; monthly active platform users increased 17%
- Shares rallied 8.7% during premarket hours following the earnings announcement
Shares of Uber rallied 8.7% during premarket trading Wednesday following the release of first quarter results that exceeded expectations across key metrics.
The company reported adjusted earnings per share of $0.72, marking an increase from $0.50 in the prior year period and topping the analyst consensus of $0.69. Revenue climbed 14% to $13.2 billion, landing slightly below the Street target of $13.28 billion.
Gross bookings emerged as the standout metric of the quarter. The figure surged 21% to $53.7 billion, comfortably clearing the $52.8 billion analyst forecast.
Heading into this earnings release, shares had declined 11% year-to-date, leaving investors hungry for positive developments.
Reported net income presented a contrasting picture. The figure fell to $263 million, or $0.13 per share, down from $1.78 billion in the same quarter last year. A $1.5 billion negative impact from equity investment revaluations drove the decline.
CEO Dara Khosrowshahi pointed to challenging macroeconomic conditions during the quarter, including geopolitical uncertainty, elevated fuel costs, and adverse weather patterns. The fundamental business metrics remained resilient throughout this period.
Total trips expanded 20% year-over-year to 3.64 billion. Monthly active platform consumers grew 17%. Growth came from both the mobility and delivery divisions, with geographic expansion distributed across multiple markets rather than concentrated in specific regions.
Freight Returns to Growth
A noteworthy development within the earnings report centered on Uber Freight. The division recorded growth for the first time in nearly two years, which Khosrowshahi highlighted as an encouraging indicator.
While the segment remains too small to significantly impact overall results at this juncture, its return to expansion eliminates a headwind that had weighed on performance.
Regarding artificial intelligence and autonomous driving initiatives, Uber introduced an AI-powered assistant for drivers and expanded or launched 10 new autonomous vehicle partnerships during the period. Management views these initiatives as strategic investments with longer-term payoff horizons.
Q2 Guidance Comes in Ahead of Estimates
Looking ahead to the second quarter, Uber projected adjusted earnings per share between $0.78 and $0.82. The lower bound aligns with current analyst expectations.
Management guided gross bookings for the upcoming quarter to a range of $56.25 billion to $57.75 billion, above the Wall Street consensus of $56.17 billion.
The forward-looking guidance indicates management’s confidence that first quarter momentum will persist into the current period.
Additional highlights embedded in the report included the freight division’s return to positive growth and the establishment of 10 new autonomous vehicle collaborations.
