Uber (UBER) Q1 2024 Earnings

Uber reported first quarter results on Wednesday, it was slightly above analysts’ revenue estimates, but the ride-sharing company reported an unexpected net loss.

Shares fell more than 6% in premarket trading on Wednesday.

Here’s how the company fared:

• Share loss: 32 cents. That may not compare to the 23 cents in earnings expected by LSEG
• Income: $10.13 billion vs. $10.11 billion expected by LSEG

Uber’s revenue rose 15% in the first quarter from $8.82 billion a year earlier. The company reported $37.65 billion in gross bookings for the period, below analysts’ expectations of $37.93 billion, according to StreetAccount.

The company’s net loss widened to $654 million, or a loss of 32 cents a share, from a loss of $157 million, or a loss of 8 cents a share, in the same quarter last year. Uber said its net loss included a net headwind of $721 million from unrealized losses related to the revaluation of its equity investments.

In an interview on CNBC’s “Squawk Box” on Wednesday, Uber CEO Dara Khosrowshahi said the company’s shift to a loss had “nothing to do with the operating business.”

“We really had to reduce those equity holdings that were making a loss,” he said. “We don’t expect that to continue to happen going forward.”

However, Uber cannot predict markets, Khosrowshahi added.

Uber reported adjusted EBITDA of $1.38 billion, up 82% year over year and slightly above the $1.31 billion expected by analysts polled by StreetAccount.

For its second quarter, Uber said it expects to report gross bookings between $38.75 billion and $40.25 billion, compared with StreetAccount estimates of $40 billion. Uber expects adjusted EBITDA of $1.45 billion to $1.53 billion, compared with the $1.49 billion expected by analysts.

The number of monthly active users on Uber’s platform reached 149 million in the first quarter, up 15% year over year from 130 million. There were 2.6 billion trips made on the platform during the period, up 21% year-on-year.

“Demand for Uber remains robust across our platform, supported by an improving market experience, the continued shift in consumer spending from goods to services and the secular trend toward on-demand transportation and delivery,” Khosrowshahi said in prepared remarks Wednesday.

Here’s how Uber’s biggest business segments performed:

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 a year earlier and up 2% from the quarter. StreetAccount analysts were expecting $5.52 billion. Uber said “business model changes” negatively impacted its mobility revenue margin by 180 basis points during the period.

“To drive user growth and earn more from their daily journeys, we are focusing on increasing our penetration of core use cases while expanding into new user segments,” Khosrowshahi said in his prepared remarks.

The company’s delivery segment reported $3.21 billion in revenue, up 4% year-over-year and up 3% quarter-on-quarter. Analysts had expected $3.28 billion, according to StreetAccount. Uber said its delivery revenue margin was negatively impacted by 230 basis points due to “business model changes” in the first quarter.

The company’s trucking business posted $1.28 billion in sales for the quarter, down 8% year-over-year and flat in the quarter.

Uber will hold its quarterly call with investors at 8:00 a.m. ET.