Uber

Uber Technologies (UBER) topped Wall Street expectations on most measures when it reported its Q1 results earlier this week and the ride-hailing company is poised to to catch up and eventually surpass many of its peers over the next year and beyond, BofA Securities said Thursday in a research note. Uber took a 6% hit during Wednesday trading after reporting an unexpected Q1 net loss, but the BoA analysts hardly mentioned the earnings miss, instead focusing on metrics like bookings, revenue and free cash flow growth. By those measures, the company was rolling along well, they said, writing Thursday Uber shares are now “attractively valued.” BoA Securities also lowered its price target for Uber shares to $87 from $91 previously to reflect a small discount for the company to the so-called FANG stocks – Facebook (META); Amazon.com (AMZN); Netflix (NFLX) and Google (GOOG, GOOGL) – setting the pace for consumer-oriented […]

Uber’s new partnership with Instacart, which allows customers to order Uber Eats-fetched food via the Instacart app, adds a “very high-quality and highly targeted suburban audience” to the Uber Eats ecosystem and for the company’s merchants, CEO Dara Khosrowshahi says on a call with analysts. The additional demand from these new high-end consumers is going to be welcomed by the merchants and increase penetration with Dominos and other merchants in the suburbs, the CEO says. Shares slide 6% to $66.21.

Uber’s gross bookings, or the value of transactions on its app, were up 20% at $37.65B in 1Q but missed analyst projections. The number of app users increased 15% during the quarter and frequency of use increased 6%, but pricing was relatively flat, CFO Prashanth Mahendra-Rajah says on a call with analysts, adding that the company expects to see similar trends in 2Q. Uber’s 2Q guidance includes a 5 percentage point headwind to gross bookings in its ride-hailing business from forex changes related to the Argentine peso, the CFO says.

Uber Technologies’ (UBER) underlying business continues to be “healthy,” even as the ride-hailing company posted mixed Q1 financial results, Wedbush Securities said Wednesday. The company’s Q1 net loss widened year-over-year to $0.32 per share from $0.08 per share, while revenue grew 15% to $10.13 billion. Analysts polled by Capital IQ expected EPS of $0.22 on revenue of $10.09 billion. The company’s shares were down over 7% in recent trading. “We think investor expectations have gotten ahead of the stock following the company’s analyst day in mid-February,” Wedbush analysts, including Daniel Ives, said in a note. Markets and investors likely also overlooked recent currency headwinds, they said. Wedbush reiterated its outperform rating on the Uber stock, saying the company continues to be “the dominant global mobility and delivery platform with multiple drivers of long-term growth.”

We cut our 12-month target to $81 from $93 on a P/E of 35x our 2025 EPS (18x our 2025 FCF). We cut our 2024 EPS to $1.00 from $2.22 and 2025’s to $2.32 from $3.63. Gross bookings grew 20%, led by strong growth in Mobility (+26%) and Delivery (+18%). Trips grew 21%, driven by a 15% rise in MAPC and a 6% uptick in frequency (trips/MAPC). Despite top-line strength, net loss widened to $654M (LPS of $0.31 vs. $0.08) due to a $72M unrealized loss from equity investment reevaluation. Yet, UBER demonstrated operating leverage, with 82% growth in adj-EBITDA to $1.4B and $4.2B trailing-12-month FCF generation. Key growth drivers include UberOne’s 45% penetration of delivery of gross bookings, new affordable offerings like Moto and Xshare for volume, and grocery growth. We also like Instacart’s partnership expanding consumer reach, complementing geographic expansion and multi-product portfolio. UBER’s geographic expansion, new user

The following is a summary of the Uber Technologies, Inc. (UBER) Q1 2024 Earnings Call Transcript: Financial Performance: Uber reported a growth of 21% YoY in trips, reflected similarly in gross bookings growth for Q1 2024. The company recorded an adjusted EBITDA of $1.4 billion, representing an 82% YoY increase. Uber generated a free cash flow of $4.2 billion in the trailing 12 months. The company projects over 20% YoY growth on a constant currency basis for Q2 2024. Uber’s new products contributed to over 20% of its new customer base, reflecting an 80% YoY growth. Delivery EBITDA margins were increased by around 20% sequentially despite robust business growth. Uber reached a $900 million run rate for advertising in Q4 of 2023. Business Progress: Uber experienced the best week in terms of gross bookings signalling strong demand for the service. Driver and courier numbers on the platform have increased to

Uber Technologies (UBER) shares slumped 8.3% in recent Wednesday trading following a surprise Q1 loss. The net loss of $0.32 per diluted share widened from the loss of $0.08 a year earlier, the company said Wednesday. Analysts polled by Capital IQ expected earnings of $0.22. Revenue in the quarter ended March 31 rose to $10.13 billion up from $8.82 billion a year earlier. Analysts surveyed by Capital IQ expected $10.09 billion. Gross bookings rose to $37.65 billion from $31.41 billion a year earlier. The consensus on Visible Alpha was $38.02 billion. The ride-hailing company expects Q2 gross bookings of $38.75 billion to $40.25 billion. Adjusted earnings before interest, taxes, depreciation, and amortization will likely be $1.45 billion to $1.53 billion, the company said.

JPMorgan analyst Doug Anmuth reiterated an Overweight rating on Uber Technologies, Inc. (NYSE:UBER) after the company reported fiscal first-quarter 2024 revenue growth of 15% year-on-year to $10.10 billion. The company beat the high end of the EBITDA guide for the eleventh straight quarter, Anmuth writes, with the metric being 3% ahead of the top end of the $1.26 billion-$1.34 billion guidance. Following the quarterly results, the analyst writes Uber can continue to grow the Delivery category profitably as it looks to improve network efficiencies, scale advertising, and strengthen marketing and incentive optimization. Uber continues to drive cross-selling from Delivery to Grocery & Retail. Some 15% of Delivery users now order from Grocery & Retail, the analyst notes. According to the analyst, divestiture of certain Careem‘s non-ridesharing business (recorded in the Mobility segment) also impacted Mobility GB growth by $150 million, or ~100bps year over year. In the first quarter, UberX Share grew 6x year

Uber Technologies’ (UBER) Q1 revenue is expected to be slightly higher than the consensus of $10.088 billion, BofA Securities said in a Monday note. The firm said it forecasts a revenue of $10.093 billion for the ride-hailing company, which is set to release Q1 results on May 8. BofA said that the “bright spot” for the quarter is expected to be Uber’s mobility business, for which the firm anticipates “modestly accelerating” year-over-year growth on a foreign exchange-neutral basis to 29%. The firm said that based on data on mobility and the company’s historical guidance, it expects a Q2 bookings guidance range of $39.5 billion to $40.5 billion, the midpoint of which is inline with the consensus of $40 billion. BofA maintained its buy rating and $91 price objective on Uber.

Uber Technologies (UBER) is expected to report better-than-projected first-quarter earnings and bookings, with the company’s mobility business likely to be the “bright spot,” BofA Securities said Monday. The ride hailing company is scheduled to report first-quarter results May 8. BofA projects earnings at $0.26 per share and gross bookings at $38.27 billion, topping Wall Street’s views for $0.22 and $37.96 billion, respectively. The brokerage expects revenue of $10.09 billion, which is said would match the Street’s estimates. BofA sees mobility bookings at $19.18 billion versus the Street’s $19.14 billion view. The firm said its outlook assumes 28% growth. “We remain constructive on Uber as our top travel/transportation stock given bookings and (earnings before interest, taxes, depreciation, and amortization) growth well above peers,” BofA analysts Justin Post and Michael McGovern said in a note. “Data points for (first-quarter) mobility spend suggest accelerating trends, while restaurant may have decelerated, though Uber’s other

JMP Securities analyst Andrew Boone reiterates Uber Technologies (NYSE:UBER) with a Market Outperform and maintains $85 price target.

Truist Securities analyst Youssef Squali maintains Uber Technologies with a Buy and raises the price target from $90 to $94.