Uber Technologies (NYSE: UBER) stock plummeted about 6% in intraday trading Wednesday after a ridesharing giant announced its first-quarter results.
Uber Technologies (UBER) recently released its first-quarter financial results, marking a significant milestone as revenue crossed the $10 billion mark for the first time. However, the ride-hailing giant fell short on gross bookings and posted a net loss, citing charges related to the revaluation of its investments.
Key Financial Highlights
Revenue Milestone: Uber reported revenue of $10.13 billion, meeting analysts’ estimates and surpassing the $10 billion mark for the first time in its history.
Gross Bookings Miss: Despite the revenue milestone, Uber’s gross bookings totaled $37.65 billion, slightly below analyst estimates of $38.02 billion.
Net Loss: Uber posted a net loss of $654 million, or 32 cents per share, significantly missing analysts’ expectations of a profit of $477.2 million, or 22 cents per share. The company attributed this loss to a $721 million pre-tax headwind related to net unrealized losses from the revaluation of its equity investments.
The results revealed that Uber showed notable growth compared to the same period in the previous year. In the first quarter of 2023, the company reported revenue of $8.82 billion on $31.4 billion in gross bookings, with a net loss of $157 million, or 8 cents per share.
Looking ahead, Uber forecasts gross bookings for the current quarter to range between $38.75 billion – $40.25 billion, reflecting an anticipated growth rate of 18% to 23% year-over-year on a constant-currency basis. However, analysts from Visible Alpha have set their sights slightly lower, with a consensus estimate of $40.12 billion in gross bookings.
Uber (NYSE: UBER) Stock Price Action
UBER stock tumbled 5.72% to close at $66.40 on Wednesday. Its value decreased by 2.05% this week. Trading activity has witnessed 84,219,976 (84.21 million) shares changing hands, well above the average daily volume of 19.56 million.
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