4 Key Takeaways From Uber's Earnings Call

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After Uber Technologies (UBER) reported mixed first-quarter results sending shares little successful intraday trading Wednesday, executives joined nan company's net telephone to talk its financial results, early plans for description , and partnerships pinch autonomous conveyance companies that could supply maturation opportunities.

Equity Investments Could Continue To Drag connected Uber's Bottom Line

Executives suggested Wednesday that Uber's equity investments could proceed to effect its bottom line successful nan coming quarters, though underlying operations are still expected to grow, and pointed to different metrics for illustration free rate flow and adjusted net earlier immoderate expenses arsenic different indicators of Uber's way to accordant profitable growth.

"Our GAAP nett income whitethorn proceed to spot swings from quarter-to-quarter owed to nan ample size of equity stakes connected our equilibrium sheet," CEO Dara Khosrowshahi said successful prepared remarks released Wednesday morning.

Uber reported a nett nonaccomplishment successful nan first 4th of $654 million, mostly owed to charges for illustration a $721 cardinal million pre-tax headwind related to "net unrealized losses related to nan revaluation of Uber’s equity investments." The institution besides had a $527 cardinal complaint successful nan 4th for ineligible costs and settlements.

However, Uber highlighted connected nan telephone that its adjusted net earlier interest, taxes, depreciation, and amortization (EBITDA) was a record-high $1.4 billion, up 82% from nan year-ago play arsenic gross bookings rose, and projected continued gross bookings maturation successful nan 2nd quarter.

The Impact of Autonomous Vehicles and Robotaxis

The emergence of autonomous vehicles has raised concerns for immoderate investors and analysts wondering if Uber could beryllium negatively impacted if companies for illustration Tesla perchance rotation retired a competing work erstwhile it reveals its robotaxi astatine an event later this summer that could let users to book rides straight done Tesla.

However, Khosrowshahi worked to reside those concerns connected Wednesday's call, saying that Uber plans to partner pinch companies some large and mini arsenic nan autonomous conveyance exertion continues to develop. He said nan institution believes that "it'll beryllium awesome for Uber" arsenic nan exertion has nan imaginable to bring safer rides and little costs for consumers, which could bring a wider customer guidelines to Uber.

He besides said that Uber's existing systems for illustration its expertise to book trips astatine standard and process payments successful a number of countries make nan institution an charismatic partner for nan autonomous conveyance companies, aliases moreover owners of autonomous vehicles who could make passive income by renting retired nan cars for Uber trips.

Like immoderate caller technology, Khosrowshahi said autonomous vehicles will return clip to create and has regulatory hurdles to clear earlier it's adopted astatine scale, and successful that clip Uber could spot a operation of quality drivers and autonomous vehicles.

Opportunities With Instacart Partnership, International Growth

In its quarterly study and prepared remarks from executives, Uber said it is seeing beardown maturation successful a number of world markets, particularly successful rides to and from airports arsenic recreation request has besides accrued pinch pandemic restrictions successful nan rearview mirror.

"We’re seeing beardown traction successful cardinal world markets for illustration Japan, Spain, Canada, and France done some caller personnel acquisition and improved personnel retention," Khosrowshahi said regarding rank maturation for Uber One, nan company's mixed subscription work for Uber and Uber Eats.

The institution besides precocious rolled retired autonomous transportation robots for Uber Eats customers successful Japan, nan first world marketplace to get nan autonomous service.

The executives said astir nan business betwixt Uber Eats and Instacart (CART) nan companies announced Tuesday arsenic well, bringing Uber Eats' web of transportation workers and connections to restaurants to Instacart's app.

"We’ll beryllium capable to scope caller consumers who are presently not progressive connected Uber Eats, giving america an opportunity to amended our class position successful cardinal areas for illustration nan suburbs," Khosrowshahi said.

Looking Ahead to Next Week's Annual GO-GET Event

Khosrowshahi and CFO Prashanth Mahendra-Rajah besides highlighted company's yearly "GO-GET" arena adjacent week connected May 15, wherever Uber is expected to denote caller products aliases features.

In nan 2023 event, Uber announced features for illustration family accounts that allowed teenagers to person Uber profiles that parents tin monitor, nan expertise to reserve car seats for Uber rides, and a telephone number to telephone and book a ride, which allows group without smartphones to usage Uber without having nan app.

Mahendra-Rajah said successful Wednesday's telephone that nan taxable of adjacent week's arena will beryllium "Togetherness," and that it will showcase caller products, features, and partnerships.

Uber shares were down 9.1% astatine $64.02 arsenic of 12:50 p.m. ET Wednesday pursuing nan company's net call, though they remained higher for this year, having gained astir 4% since nan commencement of 2024.

Source investopedia