May 8, 2025 :- Uber Technologies Inc. (NYSE: UBER) faced a lukewarm reaction from investors following its first-quarter earnings report, as strong profits were overshadowed by softer-than-expected revenue and bookings.
Table of Contents
Strong Earnings, But Revenue Misses
Uber posted earnings per share of $0.83, significantly exceeding analyst expectations and reversing a loss of $0.32 per share from the same quarter last year. However, revenue came in at $11.53 billion, narrowly missing the projected $11.63 billion. This slight shortfall prompted a cautious response from the market.
Bookings Growth Slows
The company reported 14% year-over-year growth in gross bookings, totaling $42.8 billion. While this marks continued demand for Uber’s services, it came in under the $43.1 billion analysts had forecasted. The mobility segment, which includes ridesharing, missed expectations, whereas delivery bookings grew by 15%, slightly exceeding predictions.
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Q2 Outlook Offers Some Relief
For the second quarter, Uber projects gross bookings between $45.75 billion and $47.25 billion and adjusted EBITDA ranging from $2.02 billion to $2.12 billion. While this guidance met or slightly beat expectations, it wasn’t enough to spark investor enthusiasm in the face of slowing growth.
User Growth Remains Strong
Uber continues to expand its user base, reporting 170 million monthly active platform users and over 3 billion total trips during the quarter. These figures reflect a growing global footprint, but some analysts caution that user growth must also translate into stronger revenue performance.
Investor Sentiment Mixed
Despite the earnings beat, Uber’s stock dipped by around 2.5% after the report. Analysts point to a combination of factors—including competition in ride-hailing and delivery, global economic uncertainty, and tighter margins—as reasons for investor hesitation.
Conclusion
Uber’s Q1 performance underscores a company that is becoming increasingly profitable but still grappling with growth pressures. While the fundamentals remain strong, investors may be waiting for clearer signs of sustained revenue acceleration before jumping back in.
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