Uber Falls as Gross Bookings Fall Short of Estimates, Investment Charges Lead to Net Loss

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Uber Technologies faced a challenging first quarter, with its shares dipping in premarket trading following the release of its financial results. While revenue met expectations, gross bookings fell short, and the company reported a net loss due to significant charges related to the revaluation of its investments.

Revenue: Uber reported $10.13 billion in revenue, surpassing the $10 billion mark for the first time, in line with analysts’ projections.

Gross Bookings: Gross bookings through the platform amounted to $37.65 billion, below the estimated $38.02 billion. This shortfall in gross bookings contributed to investor concerns.

Net Loss: Uber posted a net loss of $654 million, or 32 cents per share. Analysts had anticipated a profit of $477.2 million, or 22 cents per share. The net loss was primarily attributed to a $721 million pre-tax headwind related to net unrealized losses from the revaluation of Uber’s equity investments.

Comparison with Q1 2023: In the same quarter last year, Uber reported revenue of $8.82 billion and gross bookings of $31.4 billion, with a net loss of $157 million, or 8 cents per share. The year-over-year comparison highlights both revenue and gross booking growth for the company.

Future Projections: Uber projects gross bookings for the current quarter to range between $38.75 billion to $40.25 billion, indicating a year-over-year growth of 18% to 23% on a constant-currency basis. However, analysts’ consensus estimates for gross bookings slightly exceed Uber’s projection, standing at $40.12 billion.

Despite the challenges faced in the first quarter, Uber remains optimistic about its growth prospects, projecting continued expansion in gross bookings for the upcoming quarter. However, investors will closely monitor the company’s ability to address the factors contributing to its net loss and sustain its revenue growth momentum.