Uber Q1 2024 Earnings

Uber Q1 2024 Earnings

Uber Share Slip by 9% on Unexpected Q1 Loss, Diminished Booking Outlook

Uber for the first quarter reported revenue growth of 15% year over year (YoY) and stood at $10.1 billion, rising from $8.82 billion.

Uber's mobility segment generated $5.63 billion in revenue, marking a 30% increase from the previous year and a 2% rise quarter over quarter. However, Uber noted that "business model changes" led to a 180 basis point negative impact on its mobility revenue margin during the period.

CEO Dara Khosrowshahi emphasized, "To drive user growth and win more of their daily trips, we are focused on increasing our penetration of core use cases, while also expanding into new consumer segments."

Meanwhile, the delivery segment reported $3.21 billion in revenue, up 4% from the previous year and 3% higher quarter over quarter. However, Uber highlighted that its delivery revenue margin suffered a 230 basis point negative impact due to "business model changes" in the first quarter.

In contrast, Uber's freight business recorded $1.28 billion in sales for the quarter, representing an 8% decrease year over year and remaining flat quarter over quarter.

The ride-hailing and delivery firm unexpectedly recorded a net loss of $654 million in the initial quarter of the year or a 32-cent loss per share, from a loss of $157 million, or an 8-cent loss per share, in the same quarter last year. The net loss widened due to the legal settlements and equity investments exerting a greater-than-anticipated negative impact on Uber's operations.

"We did have to mark down those equity stakes that resulted in a loss," Khosrowshahi said. "We don’t expect that to keep happening going forward." Moreover, in particular, the company's ongoing legal disputes regarding the classification of its drivers, along with declining demand in specific markets, were perceived as hindering Uber's financial progress.

For the second quarter, Uber has projected gross bookings to fall within the range of $38.75 billion to $40.25 billion. Additionally, the company anticipates adjusted EBITDA to be in the range of $1.45 billion to $1.53 billion.

On 8th May 2024, Uber's shares dropped as much as 8% in premarket trade on the initial results Announcement.

Visit Us: https://graniteshares.com/institutional/uk/en-uk/

Capital at Risk | Sophisticated Investors Only


  1. Uber
  2. Reuters


This is a disclaimer stating that all trading and investing comes with risks. Always do your research and do not invest more than you can afford to spend.

GraniteShares accepts no responsibility for any loss or damage resulting directly or indirectly from the use of this blog or the contents. GraniteShares Limited (“GraniteShares”) (FRN: 798443) is an appointed representative of Messels Limited which is authorised and regulated by the Financial Conduct Authority.

This blog does not constitute an offer to buy or sell or a solicitation of an offer to buy securities in any company. Nothing contained herein constitutes investment, legal, tax or other advice nor is to be relied upon in making an investment or other decision. No recommendation is made positive or otherwise, regarding individual securities or investments mentioned herein. Any summary list of risk factors does not purport to be a complete enumeration or explanation of the risks involved in a particular investment. Prospective clients must consult with their own legal, tax and financial advisers before deciding to invest. This email contains the opinions of the author and such opinions are subject to change without notice. The source of data is GraniteShares unless otherwise stated. No guarantee is made to the accuracy of the information provided which has been obtained from sources believed to be reliable. This email and the information contained herein is intended only for the use of persons (or entities they represent) to whom it has been provided. Past performance is not a reliable indicator of future results.  The value of an investment may go down as well as up and can result in losses, up to and including a total loss of the amount initially invested. Investments may involve numerous risks including, among others, company risks, general market risks, credit risks, foreign exchange risks, interest rate risks, geopolitical risks and liquidity risks.  Please note that GraniteShares short and leveraged Exchange Traded Products are for sophisticated investors.