Uber Moving Up Today as Stock Rebounds Post Earnings Shock

Uber Technologies' stock (NYSE:UBER) has started the day strong, gaining 4%, and recapturing some of the 7.5% decline seen in yesterday's session. The previous move down came as the company announced a 20% increase in revenue year-on-year, reaching $11.96 billion, surpassing the analyst consensus of $11.77 billion.

Earnings per share came in significantly to the upside, with a $3.64 actual to the expected $0.60. The company's CEO, Dara Khosrowshahi, described it as “Uber's strongest quarter ever,” with significant growth in MAPCs, trips, and Gross Bookings. CFO Prashanth Mahendra-Rajah noted that high demand in Mobility and Delivery segments helped the company surpass its three-year outlook.

Segment Performance

• Mobility Revenue: Uber saw a growth of 25% year-over-year, reaching $6.91 billion.
• Delivery Revenue: Increased by 21% year-over-year, amounting to $3.77 billion.
• Freight Revenue: Remained stable year-over-year at $1.28 billion.

Key Metrics

• Gross Bookings: Increased 18% year-over-year to $44.2 billion.
• Trips: Grew 18% year-over-year to 3.1 billion, averaging 33 million per day.
• Monthly Active Platform Consumers (MAPCs): Hit 171 million, a 14% increase from the previous year.

Having taken the day, many analysts have come in with revisions, with a few cutting targets, whilst keeping in place Buy or equivalent ratings on the stock. UBS lowered slightly from $107 to $106, Piper Sandler trimming from $82 to $80, and JP Morgan following suit with a $90 target (from $95). BofA went the other way, raising from $93 to $95, whilst maintaining their own Buy rating.

Looking forward, Uber expects fiscal first-quarter 2025 gross bookings to range between $42.0 billion and $43.5 billion, with an adjusted EBITDA estimated to be between $1.79 billion and $1.89 billion.