Uber earnings Q1 2022

Dara Khosrowshahi, CEO of Uber Technologies Inc., speaks during a Bloomberg Technology television interview in San Francisco, California, U.S., on Tuesday, December 14, 2021.

David Pablo Morris | Mayor Bloomberg | fake images

Uber on Wednesday reported a rise in first-quarter revenue as the ride-hailing company said it is recovering from its coronavirus lows and would not have to make “significant” investments to keep drivers on the platform.

But it also reported a $5.9 billion loss during the period that was largely attributed to revaluation of equity investments. The company’s shares fell more than 9%.

These are the key numbers:

  • Loss per share: 18 cents ex items versus a loss of 24 cents, according to a Refinitiv survey of analysts.
  • Income: $6.85 billion versus an estimated $6.13 billion, according to a Refinitiv survey of analysts.

For the second quarter, Uber forecasts gross bookings of between $28.5 billion and $29.5 billion. In addition, it expects adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, of between $240 million and $270 million.

Uber said it expects to generate “significant positive cash flows” for the full year of 2022, which would mark a first for the company. CEO Dara Khosrowshahi said in a statement that April gross mobility bookings exceeded 2019 levels across all regions and use cases.

The company reported a net loss of $5.9 billion for the first quarter, which it said was mainly due to its equity investments in Southeast Asian mobility and delivery company Grab, autonomous vehicle company Aurora and Chinese car giant. Didi shared transport. Uber CFO Nelson Chai said in prepared remarks that the company has the liquidity to hold onto its positions and wait for a better time to sell.

Its adjusted EBITDA was $168 million. That represents an increase of $527 million from the same quarter last year.

Uber’s revenue increased 136% year over year to $6.9 billion.

Here’s how Uber’s largest business segments performed in the first quarter of 2022:

  • Mobility (gross bookings): $10.7 billion, up 58% year over year
  • Delivery (gross reserves): $13.9 billion, up 12% year over year

Uber has relied on its delivery business, which includes Uber Eats, during the pandemic. However, mobility revenue has now surpassed delivery revenue. Its mobility segment reported $2.52 billion in revenue, compared to $2.51 billion in delivery. Revenues remove additional taxes, tolls and fees from gross bookings.

Uber reported 1.71 billion rides on the platform during the quarter, up 18% from the same quarter a year earlier. The platform’s active monthly consumers reached 115 million, up 17% year over year. Drivers and couriers earned a total of $9 billion in the quarter, which is slightly less than the fourth quarter.

Uber said its driver base is at its highest point after the pandemic. The company expects that to continue without “significant incremental incentive investments,” Khosrowshahi said in prepared remarks.

“Our need to increase the number of drivers on the platform is not new or surprising… there is a lot of work ahead, but this is a machine that is rolling,” he said later on a conference call with investors.

Trucking companies have struggled with supply and demand ever since the Covid-19 pandemic took drivers off the road. Uber had to rely on incentives to bring drivers back, which hurt finances.

That seemed to be leveling off in recent months, but the war in Ukraine caused significant increases in fuel prices. Analysts feared companies would have to spend millions to keep drivers.

Incentives for drivers, coupled with light guidance, caused shares of rival Lyft to tumble in extended trading on Tuesday. Lyft said during his analyst call that he will spend more on driver subsidies in the coming quarter, though he believes that will help “pay off in a healthier market.”

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