Uber Continues To Enjoy Robust Demand But Legal Bills Take A Toll On Its Bottom Line

Upwallstreet | May 10, 2024

Responsive image

On Tuesday, Uber Technologies Inc (NYSE:UBER) posted a mixed first quarter report. Although Uber slightly surpassed revenue estimates, it posted an unexpected loss.

First Quarter Highlights

For the three months ended on March 31st, revenue grew 15% to $10.13 billion, slightly surpassing LSEG’s estimate of $10.11 billion. Gross bookings amounted to $37.65 billion which is below StreetAccount’s estimate of $37.93 billion.

The mobility segment grew 25% YoY as gross bookings amounted to $18.67 billion with revenue rising 30% YoY as it brought in sales of $5.63 billion.

The delivery business reported gross bookings grew 18% YoY  $17.7 billion while revenue only grew 4% YoY to $3.21 billion. Uber noted that the delivery margin was harmed by business model changes.

Freight business brought in $1.28 billion as it contracted 8% YoY.

Unexpectedly, Uber’s net loss widened to $654 million, or a 32-cent loss per share, while LSEG expected a 23-cent loss, as long-running legal fights took a toll on its bottom line. But, adjusted EBITDA rose 82% YoY to $1.38 billion.

Uber gathered 149 million monthly active platform consumers, marking a YoY rise of 15%. Completed trips also rose 21% YoY to 2.6 billion.

Second Quarter Outlook

For the current quarter, Uber guided for gross bookings in the range between $38.75 billion and $40.25 billion, with StreetAccount’s estimate of $40 billion being in the upper part of the range.

Instacart partnership

Thanks to Uber Eats, the grocery delivery company Instacart, Maplebear Inc (NASDAQ:CART), announced this week it is getting restaurant delivery. Instacart has been investing heavily in order to compete with DoorDash (NASDAQ:DASH), Amazon.com (NASDAQ:AMZN) and Walmart (NYSE:WMT). It’s no secret that DoorDash is significantly ahead in restaurant delivery. Moreover, DoorDash can tout the growth of its grocery business which is why it is a threat for Instacart. Instacart also reported its quarterly results on the same day, that reflected a strong start of the year. Instacart posted revenue growth of 8% as sales amounted to $820 million, along with a net income of $130 million. Unlike Uber, Instacart posted an earnings beat.

DISCLAIMER: This content is for informational purposes only. It is not intended as investing advice.

This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.