Uber Q1 2021 Earnings Report Recap

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Uber (UBER) Financial Results: Analysis

Uber Technologies, Inc. (UBER) reported mixed results for its Q1 FY 2021 earnings report. The company's loss per share was well below what analysts had forecast. The net loss benefitted from a $1.6 billion gain on the sale of Uber's autonomous-driving unit. It was the lowest loss per share Uber has reported in the past 12 quarters. Revenue, however, missed analyst estimates, falling 10.6% year over year (YOY). Uber's gross bookings came in at a record $19.5 billion for the quarter, surpassing analysts' expectations. The company's shares were up more than 1% in post-market trading. Over the past year, Uber's shares have provided a total return of 82.5%, well above the S&P 500's total return of 45.3%.

UBER Gross Bookings

Gross bookings are a key metric representing the total dollar value – including applicable taxes, tolls, and fees – generated by Uber's ride-hailing, grocery and food delivery, and freight-shipping businesses. Gross bookings provide a snapshot of the magnitude of all of Uber's services. The figure is positively correlated with the company's revenue, the portion of gross bookings that Uber claims as its own.

Uber's gross bookings rose 23.8% compared to the year-ago quarter. The growth was primarily driven by the 166.1% rise in gross bookings for the company's delivery segment. The delivery segment has helped to bolster Uber's business, while its rides segment has suffered during the COVID-19 pandemic. The rides segment's gross bookings were down 37.7% YOY, reflecting the ongoing adverse effects of the pandemic. However, Uber said that ridership is beginning to pick up again. Gross bookings for the freight-shipping business were up 52.5%.

Uber indicated that revenue for its rides business was reduced by $600 million due to a recent ruling by the U.K. Supreme Court. The court ruled that Uber's drivers must be classified as workers, rather than independent contractors. That means Uber will have to pay its U.K. drivers at least the minimum wage, known in the U.K. as the National Living Wage.

Uber did not provide any forward guidance in its earnings press release. Uber's next earnings report (for Q2 FY 2021) is estimated to be released on Aug. 4, 2021.