Select Page

Uber Blowout Earnings Smash Expectations, Stock Barely Budges

Uber Blowout Earnings Smash Expectations, Stock Barely Budges

In the past four years, Uber generated over $48BN in revenue by burning $10BN in cash. It has never been profitable, and this is not the quarter it will change that.

One day after its its biggest competitor Lyft reported impressive numbers only to see its stock tumble today, moments ago the world’s biggest ridesharing company reported Q1 earnings which beat on the top and bottom line yet which will likely lead to more selling now that even solid beats are punished by the market.

For Q1, Uber reported the following results:

  • Revenue revenue Ex-UK Accrual $3.50B beating exp. of $3.28BN (net revenue was $2.90 billion)

  • Adjusted EBITDA loss $359 million, beating the exp. loss $450.4 million

Of note, the company reported that it has hit positive EBITDA margins in its “profitable” markets in Q1 (hardly a shock as the name implied). It is the “investment markets” that remain challenging

Loss per share of 6c, beating the exp loss/share 60c; the net loss benefited from a USD 1.6bln gain from divestiture of ATG, partly offset by a $600MM UK accrual made for the resolution of historical claims in the UK relating to the classification of drivers. Said accrual also reduced Uber Revenues and Mobility Revenues by $600 million.

CFO Nelson Chai said that “Uber is very well positioned to drive long-term value, with improving EBITDA performance, significant liquidity, and increasingly valuable minority investments,” and judging by the following summary, he may be right, especially now that the world is exiting covid lockdowns:

How did the company get these results? Here are some more details:

  • Gross Bookings 19.54b, beating exp. 18.07bln)

Delivery Bookings 12.46bln, beating exp. 11.09bln.

Mobility Bookings 6.77bln, beating exp. 6.74bln)

The one miss for the quarter, was the number of Monthly Active Platform Consumers which at 98MM missed exp. of 100.2MM.

Some other details: cash, cash equivalents and short-term investments were $5.7 billion at the end of the first quarter, giving Uber a solid cash buffer, excluding its $12.9BN in equity stakes in companies like Didi, Grab and Aurora.

Despite the blowout earnings, Uber stock was barely changed after hours, having slumped earlier following the news that Biden would end the Trump-era gig worker rule which made life for Uber and Lyft so much easier.

 

Tyler Durden
Wed, 05/05/2021 – 16:35


This post has been republished with permission from a publicly-available RSS feed found on Zero Hedge. The views expressed by the original author(s) do not necessarily reflect the opinions or views of The Libertarian Hub, its owners or administrators. Any images included in the original article belong to and are the sole responsibility of the original author/website. The Libertarian Hub makes no claims of ownership of any imported photos/images and shall not be held liable for any unintended copyright infringement. Submit a DCMA takedown request.

-> Click Here to Read the Original Article <-

About The Author

Tyler Durden

Zero Hedge's mission is to widen the scope of financial, economic and political information available to the professional investing public, to skeptically examine and, where necessary, attack the flaccid institution that financial journalism has become, to liberate oppressed knowledge, to provide analysis uninhibited by political constraint and to facilitate information's unending quest for freedom. Visit https://www.zerohedge.com

Leave a reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Welcome

Bringing together a variety of news and information from some of today’s most important libertarian thought leaders. All feeds are checked and refreshed every hour and pages auto-refresh every 15 minutes. External images are deleted after 30 days.

Time since last refresh: 0 second

Publish Your Own Article

Follow The Libertarian Hub


Please consider donating using any of the cryptocurrencies below or use the Brave browser to tip using Basic Attention Tokens (BAT). Your anonymous contributions help keep this website running for everyone to enjoy!

Donate

Take Control of Your Domain Names
The Ultimate Managed Hosting Platform

Weekly Newsletter

Newsletter Signup

Subscribe to our newsletter to receive a weekly email report of the top five most popular articles on the Libertarian Hub!

Weekly Newsletter SignupTop 5 Stories of the Week

Subscribe to our newsletter to receive a weekly email report of the top five most popular articles on the Libertarian Hub!