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Uber Gains on New Guidance After February Mobility Demand Jumps

Published 2022-03-07, 08:10 a/m
Updated 2022-03-07, 08:10 a/m
© Reuters.

By Dhirendra Tripathi

Investing.com – Uber Technologies, Inc. (NYSE:UBER) stock traded 4.4% higher in premarket Monday after a “significant” improvement in February demand for mobility led the ride-hailing company to raise its current quarter guidance.

The company is now expecting its basic operating income on an adjusted basis to come in between $130 million and $150 million in the first quarter. This range was earlier $100 million-$130 million.

Uber said it expects a sequential improvement in adjusted EBITDA for both Mobility and Delivery segments.

“Our mobility business is bouncing back from Omicron much faster than we expected,” CEO Dara Khosrowshahi said in a statement.

“Whether for travel, commuting, or going out at night, we’re seeing healthy and growing demand across all use cases, highlighting just how eager consumers are to get moving again. In fact, airport gross bookings exiting February were up over 50% month-on-month, and we’re preparing for the upcoming travel season to be one of the strongest ever.”

The company said trips had recovered 90% and gross bookings 95% compared to February 2019, a clear sign of traffic nearing pre-pandemic levels.  

Uber had, in February, reported its second quarterly operating profit while its food delivery business delivered its maiden profit at a basic operating level. The company also reported the most active users in its history.

According to the company’s forecast then, revenue this quarter was seen at $26 billion.

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