Uber Sinks as Gross Bookings Miss Estimates, Investment Charges Drive Net Loss

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Key Takeaways

  • Uber banal fell sharply successful premarket trading Wednesday pursuing nan merchandise of first-quarter results.
  • Revenue met estimates while gross bookings fell short, and $721 cardinal successful charges related to revaluations of Uber's investments led nan institution to study a astonishing nett nonaccomplishment for nan quarter.
  • For nan existent quarter, gross bookings are projected to scope betwixt $38.75 cardinal to $40.25 billion, mostly beneath nan $40.12 cardinal analysts are projecting.

Ridesharing elephantine Uber Technologies' (UBER) shares sank successful premarket trading Wednesday arsenic nan institution released its first-quarter results. Revenue met estimates but gross bookings missed, and Uber posted a nett nonaccomplishment aft reporting hundreds of millions successful charges related to revaluations of its investments.

Revenue Meets Expectations, Gross Bookings Miss, Revaluation of Investments Contributes to Net Loss

Uber reported $10.13 cardinal successful revenue, crossing nan $10 cardinal people for nan first clip arsenic analysts projected, connected $37.65 cardinal successful gross bookings done nan platform, beneath expectations of $38.02 billion, according to estimates compiled by Visible Alpha.

Uber reported a nett nonaccomplishment of $654 million, aliases 32 cents per share, erstwhile analysts were expecting profit of $477.2 million, aliases 22 cents per share. It posted a $721 cardinal pre-tax headwind related to "net unrealized losses related to nan revaluation of Uber’s equity investments," nan institution said.

In nan first 4th of 2023, Uber reported gross of $8.82 cardinal connected $31.4 cardinal successful gross bookings, pinch a nett nonaccomplishment of $157 million, aliases 8 cents per share.

For nan existent quarter, Uber projects gross bookings to autumn betwixt $38.75 cardinal to $40.25 billion, which would correspond maturation of 18% to 23% year-over-year connected a constant-currency basis. Analysts are looking for $40.12 cardinal successful gross bookings, according to Visible Alpha consensus.

Q1 2024 Actuals Analyst Estimates for Q1 2024 Q1 2023
Revenue $10.13 billion $10.1 billion $8.82 billion
Diluted Earnings Per Share / (Loss) (32 cents) 22 cents (8 cents)
Net Income / (Loss) ($654 million) $477.2 million ($157 million)

Pre-Report News: Instacart Partnership, Analyst Thoughts

A time up of nan report, Uber announced a business pinch market transportation app Instacart (CART) to bring Uber Eats edifice transportation to nan Instacart app "in nan coming weeks" nationwide.

“Through this partnership, Instacart customers now person entree to some nan champion online market action successful nan U.S. and edifice delivery, making it moreover easier for them to conveniently tackle each their nutrient needs from a azygous app,” Instacart Chief Executive Officer (CEO) Fidji Simo said.

In nan weeks leading up to nan report, Jefferies analysts raised their target price for Uber banal to $100 from $95, penning that nan company's apical statement could use arsenic consumers adopt caller booking methods that person been released successful caller months.

In an April 29 note, Bank of America analysts wrote that they would beryllium looking for executives to reply questions astir Uber's plans to woody pinch nan emergence of autonomous vehicles done companies for illustration Waymo and Tesla that could enactment arsenic taxis and disrupt Uber's business model. While nan displacement to autonomous vehicles will return years, nan analysts wrote, events for illustration Tesla's planned robotaxi reveal presently scheduled for August could negatively effect Uber's banal price.

Uber shares fell arsenic overmuch arsenic 9% successful nan minutes aft nan report's release, and recovered somewhat to beryllium down astir 6% to $66.30 astir 90 minutes earlier nan opening bell.

Correction—May 8, 2024: This article has been updated to correct that Uber did not plaything to a loss.

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