UBER Q1 Earnings Surpass Estimates, Improve Year Over Year

Uber TechnologiesUBER reported mixed first-quarter 2025 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same. Quarterly earnings per share of 83 cents outpaced the Zacks Consensus Estimate of 51 cents. In the year-ago quarter, UBER incurred a loss of 32 cents per share.

Total revenues of $11.5 billion missed the Zacks Consensus Estimate of $11.6 billion. The top line jumped 14% year over year on a reported basis and 17% on a constant currency basis.

In the reported quarter, the majority (56.3%) of the company’s revenues came from the Mobility segment. Revenues from this segment increased 15% year over year on a reported basis and 18% on a constant currency basis to $6.49 billion, driven by a rise in Mobility gross bookings resulting from higher trip volumes. The actual segmental sales figure was above our expectation of $6.48 billion.

Revenues from the Delivery segment increased 18% year over year on a reported basis and 22% on a constant currency basis to $3.77 billion, driven by higher delivery gross bookings resulting from increased trip volumes and a rise in advertising revenues. The actual segmental sales figure was above our expectation of $3.76 billion.

Freight revenues were $1.26 billion, down 2% year over year on a reported basis and 1% on a constant currency basis due to a decrease in revenue per load as a result of the challenging freight market cycle. The actual segmental sales figure was below our expectation of $1.32 billion.

Uber Technologies, Inc. Price, Consensus and EPS Surprise

Uber Technologies, Inc. price-consensus-eps-surprise-chart | Uber Technologies, Inc. Quote

Adjusted EBITDA in the first quarter surged 35% year over year to $1.86 billion. The reported figure lies within the guided range of $1.79-$1.89 billion.

Gross bookings from Mobility improved 13% year over year on a reported basis and 20% on a constant currency basis to $21.18 billion. Gross bookings from Delivery augmented 15% year over year on a reported basis and 18% on a constant currency basis to $20.37 billion. Gross bookings from Freight came in at $1.25 million in the first quarter, down 2% year over year on a reported basis and 1% on a constant currency basis.

Total gross bookings ascended 14% year over year on a reported basis and 18% on a constant currency basis to $42.81 billion. The reported figure lies within the guided range of $42.00-$43.5 billion.

Uber exited the first quarter with cash and cash equivalents of $5.13 billion compared with $5.89 billion at the end of the prior quarter. Long-term debt, net of the current portion of $8.35 billion, was flat sequentially.

Operating cash flow was $2.32 billion in the reported quarter. The company reported free cash flow of $2.25 billion.

UBER’s 2Q25 Guidance

For the second quarter of 2025, Uber expects gross bookings in the range of$45.75 billion to $47.25 billion, indicating year-over-year growth of 16-20% on a constant currency basis.

The adjusted EBITDA is estimated to be in the range of $2.02 billion-$2.12 billion, suggesting year-over-year growth of 29% to 35%.

UBER’s Zacks Rank

Currently, UBER carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Sectoral Players to Report Q1 Results

Uber’s main competitor, Lyft LYFT, is scheduled to report its first-quarter 2025 results on May 8. The company has an Earnings ESP of 10.00[ZI1] % and a Zacks Rank #3 at present. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

We expect Lyft's performance in the to-be-reported quarter to have been boosted by an uptick in total revenues. Its top-line growth is likely to have been driven by an increase in active riders as the ride-share market rebounds from the pandemic lows. High inflation, however, might hurt results in the to-be-reported quarter.

Another player from the broader Computer and Technology sector,Baidu BIDU, has an Earnings ESP of +8.67% and a Zacks Rank #2 (Buy) at present.

BIDU is set to report first-quarter 2025 results on May 21. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at $1.96 per share. The consensus estimate indicates a year-over-year decline of 28.99%.

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This article originally published on Zacks Investment Research (zacks.com).

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