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UBER's March Gross Bookings Hit a Record, Shares Gain Over 3%

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Uber Technologies, Inc. (UBER - Free Report) provided an upbeat update for its performance in March, following which shares of the company gained 3.1% at the close of business on Apr 12.

In a SEC filing dated Apr 12, the company revealed that its March gross bookings “reached the highest monthly level” in its nearly 12-year history owing to strong performances at the Mobility and Delivery businesses.

The Mobility business, which saw significantly low ride volumes in 2020 due to coronavirus-led restrictions confining people to their homes, recorded its best performance last month since March 2020. The unit crossed $30 billion in annualized gross bookings run-rate in March and its average daily gross bookings increased 9% month over month. Meanwhile, the Delivery business hit an all-time record, crossing $52 billion in annualized gross bookings run-rate in March, indicating a surge of more than 150% year over year. Notably, the Delivery unit has been thriving since last year owing to increased order volumes from homebound customers.

With increased vaccinations in the United States, Uber is seeing consumer demand for Mobility recover faster than driver availability. On the other hand, “demand for Delivery continues to exceed courier availability”, the company said. Amid the positive developments, the company remains confident of being able to achieve adjusted EBITDA profit in 2021.

On a separate note, Uber expects to record significant accruals in its first-quarter 2021 results related to historical claims settlement for its U.K. drivers following their reclassification to workers. Majority of the accruals are expected to be reflected in the form of reduced total company and Mobility revenues and revenue take rates, and will not affect adjusted EBITDA results, the company stated.

Zacks Rank & Key Picks

Uber carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Internet - Services space are Etsy, Inc. (ETSY - Free Report) , Internet Initiative Japan, Inc. (IIJIY - Free Report) and Inc. (SOHU - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Etsy, Internet Initiative Japan and have rallied more than 200%, 40% and 100% in a year’s time, respectively.

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