Uber stock slides by close to 6% after a mixed earnings report

Uber stock slides on weaker-than-expected bookings forecast

Uber Technologies reported mixed financial results on Wednesday, surpassing adjusted profit forecasts but presenting a weaker-than-expected outlook for future bookings. Uber stock slid on the news.

The company forecasted gross bookings between $38.75 billion and $40.25 billion for the upcoming quarter, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) expected to range from $1.45 billion to $1.53 billion. These figures fell short of analysts' expectations, which had projected bookings of $40 billion and adjusted EBITDA of $1.49 billion.

Uber noted that currency fluctuations are likely to impact year-over-year growth in bookings by approximately three percentage points and by five points specifically in its mobility segment. Bookings include the total dollar value of services such as rides and delivery orders.

In a note to clients cited by MarketWatch, Wedbush analyst Scott Devitt commented:

“We think investor expectations have gotten ahead of the stock following the company’s analyst day in mid-February. Recent currency headwinds may have also been overlooked by the Street and investors and the magnitude of the [foreign-exchange] impact in [the second quarter] is notable”.

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Uber stock falls by 6% post-earnings, shares still up on YTD basis

After the earnings call, Uber stock slid by close to 6% in Wednesday trading, ending the session down 5.72% at $66.40. Despite the fall, Uber stock had risen by 7.85% year-to-date and 72.8% over the past twelve months as of Wednesday’s close.

In the first quarter, Uber's bookings were $37.7 billion, a 20% increase from the previous year, slightly missing the analyst forecast of $37.9 billion. Revenue climbed to $10.1 billion, marking a 15% increase from last year, aligning with consensus estimates.

Uber recorded a net loss of $654 million, or 32 cents per share, a significant increase from a net loss of $157 million, or 8 cents per share, reported last year. This net loss included a $721 million setback from the revaluation of equity investments, resulting in an unrealized loss.

Despite these challenges, adjusted EBITDA for the quarter reached $1.4 billion, exceeding the FactSet consensus of $1.3 billion.

“Our results this quarter once again demonstrate our ability to deliver consistent, profitable growth at scale,” Uber CEO Dara Khosrowshahi said in a release.

Michael Devitt from Wedbush added that “the underlying business remains healthy.”

Uber stock is trading flat in premarket hours on Thursday at $66.38. The company’s shares are slightly trailing the S&P 500 index year-to-date, as the SPX has gained 8.76%, while Uber stock is up 7.85%. On a 12-month basis, Uber shares have outpaced the growth of the SPX practically threefold (25.59% vs. 72.8%) as of May 9.

Uber’s main ride-sharing competitor in the U.S. saw its stock go in the opposite direction after reporting its own set of earnings on Wednesday. Lyft stock soared by 7.1%, ending the day at the $17.78 mark on better-than-expected revenue and bookings figures. Uber, however, is a far larger and more complex business, which includes food and grocery delivery and freight services. Uber is also more international, while Lyft mostly remains U.S.-focused.


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