The Rise of Uber: A Look at the Company’s Earnings Report

Key Takeaways

• Ridesharing company Uber reports earnings before markets open Wednesday.
• Investors will likely be watching whether Uber can continue growing its bookings.
• Analysts expect Uber to post record revenue, as well as record gross bookings across its Mobility business.

Uber Technologies is set to report earnings Wednesday before markets open, with investors eagerly awaiting to see if the ridesharing giant can maintain its upward trajectory in revenue and booking numbers. Analysts are optimistic about Uber’s performance, with expectations of revenue reaching $10.1 billion, a significant increase from the $8.82 billion reported in the first quarter of 2023.

In contrast to the net loss of $157 million posted last year, analysts are anticipating a net profit of $477.2 million or earnings per share (EPS) of 22 cents for Uber in this quarter. Jefferies analysts recently raised their target price for Uber to $100, citing potential revenue growth from the adoption of new services like advanced ride reservations.

Key Metrics: Bookings, Monthly Active Users

In addition to record revenue, analysts are also predicting record gross booking numbers for Uber’s Mobility business, which includes ridesharing, as well as its Deliveries segment, encompassing Uber Eats and Freight. The company is expected to achieve $38.03 billion in gross bookings, up from $31.41 billion in the first quarter of 2023.

Uber’s user base has been steadily growing, reaching 150 million monthly active users in the fourth quarter of 2023, compared to 131 million in the same period of 2022.

Business Spotlight: Competition

Analysts are keen to hear Uber’s response to potential competition from autonomous vehicles and taxi services offered by companies like Waymo and Tesla. With Tesla’s recent focus on autonomous vehicles and ridesharing, there is speculation about how Uber plans to navigate this evolving landscape. Additionally, analysts are interested in understanding Uber’s market share compared to rivals like Lyft in the ridesharing space.

While fully autonomous vehicles may still be years away from becoming a widespread transportation solution, Tesla’s upcoming robotaxi event could impact Uber’s stock performance if Tesla announces its own ridesharing app.

Despite these challenges, shares of Uber have seen a 16% increase so far this year, closing at $71.51 on Monday.

As Uber prepares to release its earnings report, investors and analysts alike will be closely monitoring the company’s financial performance and strategic outlook. The ridesharing industry continues to evolve rapidly, presenting both opportunities and challenges for companies like Uber. Stay tuned for updates on Uber’s earnings and its position in the competitive market.

Read the original article on Investopedia.