Uber reports first-quarter results that beat expectations for revenue, but posts net loss

Earnings

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Dara Khosrowshahi, CEO of Uber, speaking on CNBC’s Squawk Box at the World Economic Forum Annual Meeting in Davos, Switzerland on Jan. 17th, 2024.
Adam Galici | CNBC

Uber reported first-quarter results on Wednesday that came in slightly above analysts’ estimates for revenue, but the ridesharing company posted an unexpected net loss.

Shares fell more than 6% in premarket trading Wednesday.

Here’s how the company did:

  • Loss per share: 32 cents. That may not compare with the 23 cent earnings expected by LSEG
  • Revenue: $10.13 billion vs. $10.11 billion expected by LSEG

Uber’s revenue grew 15% in its first quarter from $8.82 billion a year prior. The company reported $37.65 billion in gross bookings for the period, which is short of the $37.93 billion expected by analysts, according to StreetAccount.

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

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 anticipates adjusted EBITDA of $1.45 billion to $1.53 billion, compared with the $1.49 billion expected by analysts.

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

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

Here’s how Uber’s largest 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 the year earlier and 2% quarter over 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 win more of their daily trips, we are focused on increasing our penetration of core use cases, while also expanding into new consumer segments,” Khosrowshahi said in his prepared remarks.

The company’s delivery segment reported $3.21 billion in revenue, up 4% from the year prior and 3% quarter over quarter. Analysts were expecting $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 freight business booked $1.28 billion in sales for the quarter, a decrease of 8% year over year and flat quarter over quarter.

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

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