Uber experienced a surge in its stock price, rising by up to 11%, following the release of its earnings report which surpassed analysts' expectations. Despite an unpredictable economic outlook, consumers are still willing to spend more on ride-hailing and food delivery services. In the first quarter, the company's adjusted EBITDA amounted to $761 million, exceeding analysts' projected figure of $678.6 million, as reported by Bloomberg's data.
Uber's gross bookings, comprising ride hailing, food delivery, and freight, totaled $31.4 billion. This figure fell slightly short of Wall Street's predicted $31.5 billion due to a decrease in freight volumes, resulting in a decline in overall bookings. However, the company's revenue of $8.8 billion surpassed analysts' projections of $8.7 billion. For the current quarter, Uber anticipates adjusted EBITDA to range from $800 million to $850 million.
Why it matters
The findings suggest that the San Francisco based company is managing to handle the effects of a slower economic growth and increasing inflation more effectively than anticipated, despite a decline in spending in retail and other sectors. Furthermore, the company has been performing better than its competitor Lyft, which is currently undergoing operational changes due to poor demand and profits. Lyft's results are due to be announced later this week.