Uber Q1 2022 Earnings Report Recap

^{Source: Predictions based on analysts' consensus from Visible Alpha}

Uber (UBER) Financial Results: Analysis

Uber Technologies, Inc. (UBER) reported Q1 FY 2022 earnings results that were mixed relative to analyst expectations. The company reported negative earnings per share (EPS) of -$3.03, widening significantly year over year (YOY). Losses were driven by a $5.6 billion headwind related to the company's equity investments, including unrealized losses related to Uber's stakes in Grab, Aurora, and Didi. Revenue more than doubled YOY to $6.9 billion, solidly surpassing analyst predictions. Revenue growth was driven by a change in Uber's U.K. Mobility business and the acquisition of Transplace by the company's Freight business.

UBER Mobility Segment Revenue

Uber's mobility segment revenue also beat analyst predictions, coming in at $2.5 billion. This represents growth of 195% YOY. The company's mobility segment includes all ride-hailing products and services, as well as Uber's financial partnerships offerings. This segment is distinct from Uber's delivery and freight businesses.

This metric is particularly important at this point because, as the economy has opened up, customers are increasingly willing to use ride-hailing services, boosting Uber's mobility business. At the same time, the surging gasoline prices could rein in Uber's growth by hurting both demand and also the availability of drivers. In March, the company began imposing a temporary surcharge on prices paid by U.S. customers to cushion the blow for Uber drivers faced with paying for soaring costs at the pump.

UBER Outlook and Stock Performance

Uber predicts adjusted EBITDA of between $240 million and $270 million, as well as gross bookings of $28.5 billion to $29.5 billion for Q2 FY 2022.

Uber shares fell by 1.7% following the earnings release on May 4. The company's stock has significantly underperformed the broader market in the past year. Uber shares have provided a one-year trailing total return of -47.0%, compared with 3.3% returns for the S&P 500, as of May 4.

UBER Earnings Call Recap

On a conference call after earnings results were released, Chief Executive Officer (CEO) Dara Khosrowshahi said the company's Uber Eats food delivery business has played a key role in fueling overall growth. Uber Eats has helped boost the number of drivers in its ride-hailing business because drivers can toggle between delivering meals and people to earn money. “The success there has been very very significant,” Khosrowshahi said. He added that active drivers in the U.S. and Canada increased 70% in April compared with last year and new drivers soared 121%.

Uber's next earnings report (for Q2 FY 2022) is expected to be released on Aug. 11, 2022.