- Uber’s (UBER) Q1 revenue of $11.53 billion missed estimates by $90 million despite 14% growth, leading to a nearly 6% stock drop to $80.93, though adjusted EPS of $0.83 beat the $0.50 forecast.
- Gross bookings rose 14% to $42.8 billion, with Mobility at $21.18 billion (+13% YoY) and Delivery at $20.38 billion (+15% YoY), while Q2 guidance projects bookings of $45.75–$47.25 billion.
- Uber emphasized autonomous vehicle growth, with a 1.5 million trip run-rate and an $700 million acquisition of Trendyol GO, alongside $2.25 billion in free cash flow supporting long-term strategy.
Uber Technologies Inc. (UBER) saw its shares decline 5.71% to $80.93 in early trading on Wednesday, reflecting investor disappointment with first-quarter revenue of $11.53 billion, which missed estimates by $90 million despite a 14% year-over-year increase. The company outperformed on earnings, reporting an adjusted EPS of $0.83 against a $0.50 consensus, bolstered by equity investment gains and operational efficiencies, while adjusted EBITDA reached $1.87 billion, up 35% from Q1 2024. Gross bookings grew 14% to $42.8 billion but fell short of the $43.14 billion forecast, prompting a cautious market response despite robust growth in trips, which rose 18% to 3 billion, and monthly active platform consumers, up 14% to 170 million.
The Mobility segment, encompassing ride-hailing, recorded $21.18 billion in gross bookings, a 13% year-over-year increase, while the Delivery segment, including Uber Eats, grew 15% to $20.38 billion, signaling steady demand across both core businesses. Uber’s free cash flow and operating cash flow both reached $2.25 billion, underscoring strong capital efficiency and supporting management’s emphasis on disciplined capital allocation. Looking ahead, the company projected Q2 gross bookings between $45.75 billion and $47.25 billion, with adjusted EBITDA expected at $2.02 billion to $2.12 billion, reflecting confidence in sustained growth despite near-term challenges like an FTC lawsuit over Uber One subscription billing practices, which management downplayed due to strong retention in the program.
CEO Dara Khosrowshahi highlighted autonomous vehicle (AV) technology as a cornerstone of Uber’s future, with partnerships involving Waymo, Aurora, and Volkswagen driving a 1.5 million trip annual run-rate for autonomous rides. Notably, Waymo’s operations in Austin have exceeded expectations, positioning Uber to capitalize on the growing AV market, projected to reach $2.1 trillion globally by 2030. Additionally, Uber’s strategic acquisition of an 85% stake in Turkey’s Trendyol GO for $700 million expands its delivery footprint, aligning with its goal to diversify revenue streams beyond ride-hailing. Despite competitive pressures from rivals like Lyft (LYFT) and regulatory scrutiny, Uber’s focus on long-term free cash flow strength and technological innovation reinforces its position as a leader in the mobility and delivery sectors, with global scale and operational resilience mitigating short-term revenue misses.
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