Shares of Uber Technologies (NYSE:UBER) are down over 8% in pre-open Wednesday after the company reported Q1 earnings.
Uber reported Q1 revenue of $6.85 billion, beating the consensus projection of $6.13 billion. Uber reported a loss per share of $3.04, compared to the loss per share of 6c in the year-ago period.
Gross bookings generated $26.45 billion in the period, above the analyst expectations of $25.81 billion. Delivery bookings generated $13.9 billion, up 12% YoY and also above the analyst expectations of $13.73 billion.
The company reported $10.72 billion in mobility bookings, up 58% YoY, topping the analyst consensus of $10.49 billion. The number of monthly active platform consumers totaled 115 million, up 17% YOY, below the analyst expectations of 116.6 million.
Uber said it expects Q2 adjusted EBITDA in the range of $240 million to $270 million, compared to the consensus estimates of $247.9 million. Gross bookings are expected between $28.5 billion to $29.5 billion in the quarter, while analysts were looking for $28.61 billion.
Net loss attributable to Uber Technologies totaled $5.9 billion, including a $5.6 billion headwind associated with the company’s equity investments, mainly due to total unrealized losses related to the company’s stakes in Didi, Grab, and Aurora.
“We are pleased with our Q1 results, with outperformance of our quarterly guidance and strong incremental margins,” said CFO Nelson Chai. “With free cash flow approaching breakeven in Q1, we now expect to generate meaningful positive free cash flows for full-year 2022.”
Needham & Company analyst Bernie McTernan reiterated a Buy rating and a $68.00 per share price target after seeing “better than expected 1Q22 results and guidance ahead of consensus.”
“It's clear UBER moved up their earnings call ahead of market hours because they had a good story to share. In addition, Uber indicated April mobility gross bookings exceeded 2019 levels across all regions and use cases,” McTernan said in a client note.
Goldman Sachs (NYSE:GS) analyst Eric Sheridan expected a positive reaction to Uber’s earnings report.
“With Q2 guidance that points to better volumes and profitability than our estimates, we see Uber as benefitting from scaled advantages in terms of finding marketplace balance (supply & demand) as the broader rides/delivery landscape sees strong/sustained growth into the remainder of 2022,” Sheridan wrote in a note.
By Senad Karaahmetovic