Ride-hailing giant Uber posted better-than-expected results for the first quarter of 2023, media reports said on Tuesday.
The company reported an 8-cent loss per share, compared to the 9-cent loss expected by analysts. Its revenue for the quarter came in at $8.82 billion, beating the expected $8.72 billion. The revenue was up 29 percent compared to the same period in the previous year.
The buoyant Q1 results pushed Uber’s shares by 7 percent in the US stock markets.
The company’s adjusted EBITDA was $761 million, more than the expected $687 million. Its gross bookings for the quarter were $31.4 billion, up 19 percent year-on-year. In the second quarter (April-June) of 2023, Uber expects to report gross bookings between $33 billion to $34 billion and an adjusted EBITDA of $800 million to $850 million.
EBIDTA shows a company’s operative performance while gross bookings show the total revenue generated by a business before deductions.
Expressing his delight over the quarterly results, Uber CEO Dara Khosrowshahi said that its global scale provides a “significant data advantage” over its competitors.
Khosrowshahi added that Artificial Intelligence has been helping the company predict accurate arrival times for rides and deliveries and expedite driver onboarding by processing documents more “reliably and cost-efficiently.”
Mobility driving growth
Meanwhile, Uber’s mobility segment reported gross bookings of $14.98 billion in the first quarter, up 40% from last year. On the other hand, the delivery segment, including Uber Eats, reported gross bookings of $15.02 billion, up 8 percent compared to last year.
The number of monthly active platform consumers on Uber climbed to 130 million in the fourth quarter, up 13 percent year-on-year. The company reported that 2.12 billion trips were completed on its platform during the period.
According to Khosrowshahi, consumers have been spending more on services and less on retail, which is shipped by freight. “We are seeing prices come down from the historically elevated levels that we saw two years ago,” he said.
Uber has had a tumultuous few years since its initial public offering in 2019, with the COVID-19 pandemic significantly impacting its ride-hailing business. The company’s pivot to its delivery segment helped it stay afloat during the pandemic. In every quarter of 2022, the company’s mobility segment surpassed Uber Eats in total revenue as riders began to take more trips.
Uber’s revenue boom will instill a new wave of confidence among its investors and general public, amid rising layoffs and depleting economy. With its global scale and significant data advantage, Uber is well-positioned to continue to grow its user base and revenue in the coming years.
For all the latest business News Click Here
