Uber Technologies Inc. has reported earnings that exceeded analysts’ estimates. The adjusted earnings of $761 million in the first quarter were higher than the predicted $678.6 million, according to Bloomberg data.
The higher profits indicate that despite economic uncertainty, consumers are still spending more on rides and food takeout.
According to Bloomberg, shares jumped as much as 7.6% to $35.20 in New York. That brings this year’s gains to 40%.
Uber generated $31.4 billion in gross bookings, which include ride-hailing and food delivery. Despite fewer-than-expected monthly active users, ride-hailing bookings of $15 billion beat projections, indicating that customers are taking trips more frequently, attributed in part to lower fares.
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Bouncing Back From COVID
Uber was hit hard during the pandemic, as demand for rides shot down. However it was able to cushion the fall with its delivery unit Uber Eats, which saw millions of people order takeout from home.
However after cities re-opened, Uber struggled to onboard new drivers, causing wait times and surges to soar.
Uber has continued to keep an eye on its bottom line, with CEO Dara Khosrowshahi stating that the company was going through a round of layoffs as part of a performance review process in February 2023.
The company reported $8.8 billion in revenue during the period ending March 31, surpassing analysts’ expectations of $8.7 billion. Uber expects adjusted earnings before interest, taxes, depreciation and amortization of $800 million to $850 million in the current quarter.