Uber Technologies Inc. (NYSE: UBER) reported the smallest quarterly loss on Wednesday as COVID-19 restrictions started to ease in recent months. The company also offloaded its self-driving unit recently that further boosted performance in the fiscal first quarter.
1. Financial performance
Uber said that its net loss shrunk to £77.66 million in the first quarter (4.31 pence per share). In the comparable quarter of last year, its loss stood at a sharply higher £2.09 billion (76 pence per share).
ATG divestment contributed to minimising loss by £1.15 billion. Adjusted EBITDA loss, the ride-hailing company added, came in at £258.15 million. Revenue tanked from £2.34 billion to £2.09 billion in Q1.
According to FactSet, experts had forecast £2.35 billion of revenue and 40.27 of per-share loss for Uber in the recent quarter.
2. Full-year guidance and gross bookings
The San Francisco-based firm reiterated its confidence on Wednesday that it will turn adjusted EBITDA profitable by the end of 2021. Uber’s quarterly results come a day after its peer Lyft published its earnings report for fiscal Q1.
Uber also highlighted in its earnings report on Wednesday that gross bookings also jumped 24% in the first quarter to an all-time high of £14.02 billion versus £13.00 billion expected. Delivery gross bookings slid to £8.99 billion (better than expected), and mobility gross bookings tanked to £4.89 billion (worse than expected) in Q1.
3. Wedbush’s Dan Ives comments on CNBC’s “Closing Bell”
Commenting on Uber’s financial report, Wedbush’s Dan Ives said on CNBC’s “ClosingBell”:
“I think it’s a clear step in the right direction. If you look at the bookings number as well as the cost cuts, they’re making sure that they hit profitability later this year. The regulatory concerns are definitely a risk, but the quarterly results sure checked every box for bulls.”
New Street Advisors founder Delano Saporu also said on CNBC’s “Closing Bell” on Wednesday that Uber could grow into a super app.
Impact on the share price
Uber shares were reported more than 4% down in extended trading on Wednesday. Including the price action, the stock is now exchanging hands at £35 per share that roughly matches the per-share price at which the NYSE-listed company had started the year 2021. Here’s what you need to know about how to invest in the stock market.
At the time of writing, the American technology company has a market capitalisation of £68.72 billion.
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Wajeeh Khan
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