Shares of Uber Technologies (UBER) surged over 7% at the market open after the company reported higher Q1 revenue, driven by strong growth in trip volumes and active users. The company’s trips jumped 20% to 3.64 billion, while monthly active platform customers rose 17%, highlighting continued momentum across its mobility and delivery businesses.
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For context, Uber is a global mobility and delivery platform that connects users with transportation services like ride-hailing, as well as food and package delivery through Uber Eats.
Trip Volume Fuels Revenue Growth
Uber reported strong growth in Q1, with gross bookings rising 25% year over year to $53.7 billion (21% on a constant currency basis). As a result, revenue increased 14% to $13.2 billion. CEO Dara Khosrowshahi highlighted that the growth came despite a challenging macroeconomic backdrop, including heightened geopolitical tensions, higher fuel prices, and adverse weather conditions.
However, bookings were marginally down from the previous quarter. Below is a screenshot of Uber’s bookings growth in the last few quarters.
In addition, the company’s profit fell to $263 million, or 13 cents per share, compared to $1.78 billion a year earlier. The decline was mainly driven by a $1.5 billion negative impact from revaluations of Uber’s equity investments.
Uber’s Q2 Guidance
Looking ahead, Uber aims to boost user engagement while accelerating its AI and autonomous vehicle efforts. During the period, the company expanded its AI push by introducing new tools, including an AI assistant for drivers, and also unveiled 10 new and expanded partnerships in the autonomous driving space.
Uber expects adjusted earnings of 78 to 82 cents per share for the current quarter. The company also projects Q2 gross bookings between $56.25 billion and $57.75 billion, slightly ahead of Wall Street expectations of $56.17 billion.
Is UBER a Good Stock to Buy Now?
On TipRanks, Uber stock has a Strong Buy consensus based on 20 Buys and two Holds assigned in the last three months. Meanwhile, UBER stock’s average price target is $106.00, implying an upside of 45.3% from the current level.
These ratings and price targets will likely change as analysts update their coverage following today’s earnings report.
