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UBER Shares Slip Nearly 5% Despite Q1 Earnings & Revenue Beat

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Uber Technologies (UBER - Free Report) incurred an adjusted loss of 18 cents per share in the first quarter of 2022, narrower than the Zacks Consensus Estimate of a loss of 27 cents. The bottom line improved year over year.

Total revenues of $6,854 million also outperformed the Zacks Consensus Estimate of $6,202 million. The top line jumped more than 100% year over year (improved 18.6% sequentially), primarily due to the November 2021 acquisition of Transplace and easy year-over-year comparison (due to the accrual for historical claims in the United Kingdom in the first quarter of 2021). Despite this better-than-expected first-quarter performance, shares of UBER fell nearly 5% at the close of business on May 4 on concerns of driver shortage as Mobility operations ramp up amid rising gas prices.

Adjusted EBITDA in the first quarter was $168 million against adjusted EBITDA loss of $359 million in the year-ago period. The upside was due to significant improvement in Mobility adjusted EBITDA and the Freight segment reaping profits on an adjusted EBITDA basis. At the Delivery segment, adjusted EBITDA was $30 million against adjusted EBITDA loss of $200 million in the year-ago quarter.

Uber Technologies, Inc. Price, Consensus and EPS Surprise

Uber Technologies, Inc. Price, Consensus and EPS Surprise

Uber Technologies, Inc. price-consensus-eps-surprise-chart | Uber Technologies, Inc. Quote


Uber incurred a net loss of $5,930 million in the first quarter against net loss of $108 million in the year-ago period. This can be attributed to a $5.6-billion headwind related to unrealized losses on UBER’s equity investments.

In the first quarter, majority (36.7%) of the company’s revenues came from Mobility. Revenues from this segment jumped more than 100% year over year to $2,518 million as ride volumes continued to rebound. Revenues from the Delivery segment increased 44% year over year to $2,512 million, owing to a surge in online order volumes. Freight revenues climbed to $1,824 million from $301 million in the year-ago period, thanks to the acquisition of Transplace.  

Total revenues soared more than 100% year over year to $4,562 million in the United States and Canada. While revenues increased 43% to $432 million in Latin America, the same skyrocketed more than 400% to $1,127 million in Europe, the Middle East and Africa. Revenues rose 39% to $733 million in the Asia-Pacific region. Monthly active platform consumers jumped 17% to 115 million.

Gross bookings from Mobility improved 58% to $10,723 million. Gross bookings from Delivery augmented 12% to $13,903 million. Gross bookings from Freight surged $1,823 million in the first quarter from $302 million in the year-ago quarter. Total gross bookings ascended 35% to $26,449 million.

Cost of revenues (adjusted) increased significantly year over year due to the classification of certain Delivery and Mobility payments associated with business model changes in some countries. The acquisition of Transplace also contributed to the rise in cost of revenues. Total costs and expenses surged 65.7% year over year to $7,336 million, with sales and marketing expenses rising 14.5%.

Uber, carrying a Zacks Rank #3 (Hold), exited the first quarter with cash and cash equivalents of $4,184 million compared with $4,295 million at the end of 2021. Long-term debt, net of current portion at the end of the quarter, was $9,273 million compared with $9,276 million at December 2021-end. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q2 Guidance

For the second quarter, Uber expects gross bookings of $28.5 billion-$29.5 billion. Adjusted EBITDA is estimated to be $240 million-$270 million. With free cash flow approaching break even, the company expects positive free cash flow for the full year.

Performance of Other Computer & Technology Stocks

Within the broader Computer and Technology sector, AMETEK, Inc. (AME - Free Report) and T-Mobile US, Inc. (TMUS - Free Report) recently reported earnings numbers.

AMETEK, carrying a Zacks Rank #3, reported first-quarter 2022 adjusted earnings of $1.33 per share, which beat the Zacks Consensus Estimate by 4.7%. Further, the bottom line rose 24% on a year-over-year basis.

AMETEK’s net sales of $1.458 billion lagged the Zacks Consensus Estimate of $1.461 billion. However, the top line rose 20% year over year, driven by strong performances of the Electronic Instruments Group and Electromechanical Group segments.

T-Mobile, carrying a Zacks Rank #3, reported first-quarter 2022 earnings of 57 cents per share, which beat the Zacks Consensus Estimate by 16 cents. However, the bottom line declined year over year due to merger-related costs.

T-Mobile’s total revenues inched up 1.8% year over year to $20,120 million, primarily driven by growth in service revenues. The top line, however, lagged the consensus estimate of $20,129 million.


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