Uber's Profit Takes A Hit Despite Revenue Uptick, Stock Tanks

Uber Technologies, Inc UBER reported fiscal first-quarter 2024 revenue growth of 15% year-on-year to $10.10 billion, marginally missing the analyst consensus estimate of $10.11 billion. 

Uber's GAAP EPS of 32 cents loss missed the analyst consensus estimate of 23 cents. The stock price dropped after the results.

Revenue from Mobility grew to $5.63 billion, up 30% year over year. Delivery was $3.21 billion, up 4%, and Freight was $1.28 billion, down 8% year over year.

Gross Bookings grew 20% year-over-year to $37.65 billion, with Mobility Gross Bookings of $18.67 billion, up 25% year-over-year, Delivery Gross Bookings of $17.7 billion, up 18%, and Freight Gross Bookings of $1.28 billion, which fell 8% year-over-year. 

Trips grew 21% year-over-year to 2.57 billion, or 28 million per day. Uber's Monthly Active Platform Consumers reached 149 million, up 15% year-over-year.

Uber recorded other expenses of $678 million, partially driven by mark-to-market losses in Aurora investments and Grab investments.

Margins: Uber clocked an Adjusted EBITDA of $1.5 billion, driven by Mobility. The Adjusted EBITDA margin as a percentage of Gross Bookings was 7.9%, up from 7.1% Y/Y, primarily driven by better cost leverage from higher volume. 

Uber held $5.8 billion in unrestricted cash and equivalents and generated $1.4 billion in free cash flow as of March 31, 2024.

The company's move to a loss had "nothing to do with the operating business," Uber CEO Dara Khosrowshahi said in an interview with CNBC's "Squawk Box" on Wednesday. 

"We did have to mark down those equity stakes that resulted in a loss," he said. "We don't expect that to keep happening going forward." However, Uber cannot predict the markets, Khosrowshahi added.

Outlook: Uber expects second-quarter gross bookings of $38.75 billion to $40.25 billion and an adjusted EBITDA of $1.45 billion to $1.53 billion. 

The second-quarter consensus for revenue and EPS are $10.67 billion and $0.30.

Price Action: UBER shares traded lower by 8.31% at $64.58 premarket on the last check Wednesday.

Uber. Photo via Shutterstock