Uber shares soar after ride-hailing app reports Q1 profit beat

Investing.com -- Shares in Uber Technologies Inc (NYSE:UBER) spiked in premarket U.S. trading on Tuesday after the ride-hailing company posted better-than-expected revenue in the first quarter.

The San Francisco-based group, whose business also includes services like food delivery and freight transport, reported a 29% increase in revenue compared to the same period last year, reflecting a surge in post-pandemic travel demand. The top-line figure was above Bloomberg consensus estimates of $8.72 billion.

Gross bookings gained nearly a fifth to $31.4B, while total trips taken over January to March grew by 24% to 2.1B - or about 24 million journeys a day on average.

Adjusted earnings before interest, tax, depreciation and amortization - one of the company's most closely watched measures of profitability - jumped by more than four-fold to $761M, also ahead of projections.

Uber now expects to report growth in gross bookings to between $33B and $34B in the second quarter, while adjusted core earnings are seen rising between $800M and $850M.

"Overall, this was a quarter Uber should frame in its [headquarters] as it speaks to a 'new and improved' Uber story going forward with adults in the room," analysts at Wedbush said in a note to clients.