Uber (NYSE: UBER) reported positive earnings on Wednesday as it continues to recover from the pandemic lows. Moreover, the company revealed it would not need to make “significant” investments to keep drivers on the app. Uber’s shares fell over 10% in early morning trading.
The American mobility company reported an earnings loss of USD0.18 per share, compared to the expected USD0.27 a share. Meanwhile, revenue amounted to USD6.85 Billion, higher than analysts anticipated USD6.2 Billion. However, the company also reported a net loss of USD5.9 Billion for the quarter, due to its equity investments in Southeast Asian mobility and delivery company Grab as well as ride-hailing company Didi.
“Our results demonstrate just how much progress we’ve made navigating out of the pandemic and how the power of our platform is differentiating our business performance,” said Dara Khosrowshahi, CEO. “In April, Mobility Gross Bookings exceeded 2019 levels across all regions and use cases. There’s never been a more exciting time to innovate at Uber and we’re focused on executing our strategy to grow our platform profitably.”
“We are pleased with our Q1 results, with outperformance of our quarterly guidance and strong incremental margins,” said Nelson Chai, CFO. “With free cash flow approaching breakeven in Q1, we now expect to generate meaningful positive free cash flows for full-year 2022.”
Uber now forecasts that its second-quarter gross bookings will range between USD28.5 Billion and USD29.5 Billion. Furthermore, it believes adjusted EBITDA will be between USD240 Million and USD270 Million.