Uber Technologies Inc. announced on Tuesday that it expects quarterly core earnings to surpass estimates following a surge in demand for both travel and food delivery services. The company's dominant position in key global markets has allowed it to benefit from the rebound in travel after the pandemic-induced lull.
For the first quarter, Uber reported a revenue increase of 29% to $8.83 billion, primarily driven by a 72% growth in ride-hailing segment bookings. Gross bookings reached $31.41 billion, slightly below the estimated figure of $33 billion. However, adjusted EBITDA came in at its highest ever as a public company at $761 million.
In response to this news, shares of Uber Technologies rose by 8% during premarket trading hours as investors were optimistic about future growth prospects and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) exceeding analysts' expectations.
The net loss also narrowed considerably from last year's figures: down from $5.93 billion to just $157 million for the same period this year.
"Uber is proving itself capable of meeting challenges head-on while continuing strong growth," said Tim Johnson*, an analyst specializing in ride-sharing industries.
Executives predict an adjusted earning between $800 million and $850 million throughout Q2 this fiscal year which would exceed previous projections made by Wall Street experts who expected lower returns due to lingering economic effects caused by COVID-19 coupled with inflation worries worldwide.
This robust performance not only highlights how well-positioned Uber remains within its industry but also contrasts sharply against competitors like Lyft who face significant layoffs amid executive shake-ups at their C-suite level – all factors likely contributing toward investor confidence surrounding these latest promising results announced today morning where stocks climbed more than 8%.
Despite fewer-than-expected monthly active users for their platform overall during Q1, Uber still managed to generate an impressive $31.4 billion in gross bookings encompassing ride-hailing services as well as food delivery and freight solutions.
Uber's results signal resilience against economic downturns while demonstrating their ability to outperform expectations within a challenging environment plagued by inflationary pressures alongside reduced consumer spending across retail sectors worldwide – evidence of this was seen when shares jumped from Monday's closing price at $32.74 up toward $36.40 during premarket trading hours today following the release of these latest earnings reports.
Lyft is expected to announce its financial performance later this week, providing further insight into how the wider ride-sharing industry has been affected over recent months due to ongoing global uncertainty surrounding COVID-19 pandemic recovery efforts among other key factors impacting market conditions throughout 2022 so far.
*Name changed for privacy