After strong January-March results, Uber Technologies Inc. (UBER.N) forecasted quarterly core earnings above estimates on Tuesday.
The company’s shares climbed 10% in premarket trade, while Lyft Inc. (LYFT.O) rose 4%.
As travel recovers from the pandemic, Uber benefits from its global dominance.
Analysts say a rise in people seeking extra income enables platforms like Uber to make more money by giving lower gig worker incentives.
“Our clear lead on driver preference has allowed us to better serve this growing demand: 5.7 million drivers and couriers earned $13.7 billion (including tips) on Uber during the quarter, both all-time highs,” said CEO Dara Khosrowshahi.
“The rideshare category in the United States and Canada is now growing faster in 2023,” he added after two years of stagnation.
Uber predicts adjusted profits before interest, taxes, depreciation, and amortization (EBITDA) of $800 million to $850 million for the June quarter, one of its key financial indicators. That exceeded Refinitiv’s $749.1 million forecast.
The largest U.S. ride-sharing giant also expected revenue bookings between $33 billion and $34 billion compared to $33 billion.
Uber’s first-quarter revenue rose 29% to $8.83 billion, exceeding projections of $8.72 billion, powered by 72% ride-hailing growth.
Gross bookings of $31.41 billion were somewhat below the projection of $31.49 billion.
Uber reported $761 million adjusted EBITDA, its highest as a public firm. Since fiscal 2021’s third quarter, the company has reported a profit.
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