Uber Technologies just dropped a bombshell first-quarter earnings report and its stock is already feeling the heat as Wall Street scrambles to react.
The company crushed analyst expectations on profit, posting earnings per share of 83 cents versus the expected 50 cents. That’s a whopping $1.78 billion in net income – not bad for a company that lost $654 million in the same period last year. But the good news didn’t last long.
Despite the massive profit beat, Uber reported $11.53 billion in revenue, just shy of the $11.62 billion forecast – and that tiny miss? It sent stock tumbling over 5% in early trading. Investors love profit, but they hate surprises, especially when it comes to topline growth.
Still, Uber had plenty to brag about. Trips were up 18% year over year, totaling 3.04 billion. Monthly active users? 170 million, up 14% from last year. The company’s delivery segment booked $20.38 billion, and its core mobility division hit $21.18 billion – both double-digit gains.
CEO Dara Khosrowshahi didn’t seem too rattled by the market dip. Instead, he doubled down on what Uber sees as its biggest play yet: autonomous vehicles. Calling AVs “the single greatest opportunity ahead,” Khosrowshahi highlighted partnerships with Waymo, Volkswagen, Pony.ai, and more.
And the robotaxi dream is already rolling. In Austin, Texas, Uber riders can now book Waymo vehicles directly through the app. The company says Waymo cars in Austin are outperforming 99% of human drivers based on daily trips. Across the U.S., Uber is logging over 1.5 million AV trips a year.
As for guidance? Uber expects Q2 gross bookings between $45.75B and $47.25B, and EBITDA in the $2.02B to $2.12B range. It’s bullish, but the market clearly wants proof that the ride-hailing giant can grow revenue as fast as it scales tech.
Another curveball: Uber is facing a lawsuit from the FTC over alleged deceptive practices related to its Uber One subscription. Khosrowshahi pushed back hard, calling the app’s cancellation process “very, very simple,” and defended the growing subscription service – now responsible for 60% of Uber Eats bookings.
Meanwhile, some internal culture shifts may also be causing ripples. Uber recently mandated a return to office three days a week, up from two, and tweaked its sabbatical policy – now requiring eight years of service instead of five. Khosrowshahi defended the move in a tense all-hands, saying, “We need to be at our top of our game.”
Despite the stock drop, Uber’s up more than 40% year-to-date, significantly outperforming the broader market. If it sticks the landing on its Q2 targets and keeps the AV momentum going, that rally may just be getting started.
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