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Uber shares drop after unexpected loss, ignoring raised outlook

Published 2024-05-08, 11:22 a/m
© Reuters.  Uber shares drop after unexpected loss, ignoring raised outlook
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Proactive Investors - Uber Technologies Inc (NYSE:UBER) shares were down on Wednesday after the ride-hailing and food delivery platform reported an unexpected loss.

Gross bookings in the first quarter rose 20% year-over-year to $37.70 billion, with the Mobility taxi arm increasing 25% to $18.70 billion and delivery climbing 18% to $17.70 billion.

Revenue of $10.10 billion was up 15%, just ahead of Wall Street forecasts of $10 billion, while a net attributable loss of $654 million was made, up from $157 million a year ago and a $1.4 billion profit in the fourth quarter of last year. The loss reflected $721 million of net unrealized losses related to the revaluation of equity investments.

"Our GAAP net income may continue to see swings from quarter-to-quarter due to the large size of equity stakes on our balance sheet," said CEO Dara Khosrowshahi in a statement.

He said Uber's $5.6 billion-valued equity stakes, several of which are publicly listed, "provide us with strategic insights while maintaining economic exposure, and we aim to maximize long-term value for Uber and our shareholders".

On an underlying adjusted EBITDA basis, the company reported a record profit of $1.40 billion, marking 82% growth.

“Our results this quarter once again demonstrate our ability to deliver consistent, profitable growth at scale,” said Khosrowshahi, while CFO Prashanth Mahendra-Rajah highlighted $4.20 billion in free cash flow generated over the past 12 months.

Looking forward to Q2, Uber anticipates gross bookings between $38.75 billion and $40.25 billion, representing an 18-23% increase on last year, with adjusted EBITDA of $1.45-1.53 billion, which would be growth of 58% to 67%.

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Shares of Uber had fallen 8.6% in morning trading in New York.

--Updates with share price--

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