Uber Technologies Q1 Loss Narrows; Delivery Revenues Surge

Uber Technologies Inc. (UBER) Wednesday reported a first-quarter loss that narrowed from last year, despite revenues dropping 16%, reflecting a gain from sale of self-driving unit.

The ride-hail service’s fourth-quarter loss was narrower than Wall Street estimates, but revenues fell short of expectations. Uber recorded a 24% increase in gross bookings, driven by continued growth in the delivery business.

For the first-quarter, Uber reported net loss of $108 million or $0.06 per share, compared with last year’s loss of $2.94 billion or $1.70 per share. On average, 30 analysts polled by Thomson Reuters estimated loss of $0.54 per share for the quarter.

Uber said it’s results benefited from a $1.6 billion gain from the divestiture of ATG.

Revenues for the quarter dropped 11% to $3.25 billion from $2.90 billion last year. Analysts had a consensus revenue estimate of $3.28 billion.

Mobility revenues declined 65% year-over-year to $853 million from last year, but delivery revenues surged 230% year-over-year to $1.74 billion from last year.

Uber said its revenues and mobility revenues were reduced by a $600 million accrual made for the resolution of historical claims in the UK relating to the classification of drivers.

Gross Bookings jumped 24% to $19.5 billion from last year, with Delivery Gross Bookings growing 166% and Mobility Gross Bookings declining 38%.

“We outperformed both our Gross Bookings and Adjusted EBITDA outlook, with Mobility trends improving through the quarter and continued elevated growth for our Delivery business, combined with disciplined operational execution,” said Nelson Chai, CFO.

UBER closed Wednesday’s trading at $51.18, down $1.81 or 3.42%, on the Nasdaq. The stock further slipped $1.67 or 3.26% in the after-hours trade.

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