What you need to know ahead of Uber’s Wednesday earnings report

Key takeaways

  • Ride-sharing company Uber reports earnings before markets open on Wednesday.
  • Investors will likely be watching to see if Uber can continue to increase bookings.
  • Analysts expect Uber to record record revenues and record gross bookings in the mobility space.

Uber Technologies (UBER) will report earnings on Wednesday before markets open, and investors will likely be watching to see whether the ride-sharing company continues to grow its revenue and bookings.

Analysts expect Uber’s revenue to grow year-over-year to $10.1 billion from the $8.82 billion recorded by the company in the first quarter of 2023, surpassing the $10 billion mark for the first time.

In contrast to Uber’s net loss of $157 million last year, which equates to a loss of 8 cents per share, analysts predict Uber could post a net profit of $477.2 million or earnings per share (EPS) of 22 cents, according to estimates prepared by Widoczna alfa.

Jefferies analysts earlier this month raised the company’s price target for Uber to $100 from $95, about 40% above the $71.51 level it was trading on Monday. Analysts said Uber’s revenue could be boosted by broader adoption of some of its newer services, including a feature that allows users to book rides up to 90 days in advance.

Analyst estimates for Q1 2024 Q4 2023 Q1 2023
Income $10.1 billion $9.94 billion $8.82 billion
Diluted earnings/(loss) per share 22 cents 66 cents (8 cents)
Net income / (loss) $477.2 million $1.43 billion ($157 million)

Key indicators: reservations, active users per month

In addition to record revenues, analysts also expect Uber to see record gross bookings in its mobility segment, which includes the ride-sharing portion of its business, and its delivery segment, which includes its Uber Eats delivery app, as well as its smallest segment, freight transportation. . The company is projected to set another record quarter with $38.03 billion in gross bookings, up from $31.41 billion recorded in the first quarter of 2023.

In the year-ago quarter, mobility and delivery were roughly equal, and total bookings for the quarter were approximately $15 billion. Another important value for app-based companies is the number of monthly active users. Uber’s user base grew to 150 million in the fourth quarter of 2023 from 131 million reported in the fourth quarter of 2022.

Business in focus: competition

Bank of America Securities analysts wrote in an April 29 note that they would be looking for Uber executives to comment on how the company plans to respond to the potential competitive threat from autonomous vehicles and taxis from companies like Waymo and Tesla after Elon Musk said yes. the main topic of Tesla’s plans was the conversation about the company’s results at the end of April. BofA analysts also hope to hear what Uber thinks about competition in the ride-sharing space, analyzing its market share compared to rivals like Lyft.

While analysts say the industry is likely “years away” from fully autonomous vehicles being a “viable and reliable nationwide ride-hailing solution,” they noted that Tesla’s planned robotxi event in August could have a negative impact on Uber’s stock , if Tesla announces its own shared rides then the app.

Uber shares are up about 16% this year, hitting $71.51 at Monday’s close.