Shares of Uber Technologies, Inc. (NYSE: UBER) closed 4.7% lower on Wednesday after the company reported mixed results for the first quarter of 2022.
Revenues grew 136% year-over-year to $6.9 billion, beating the Street’s estimate of $6.13 billion. However, the loss per share of $3.04 was wider than analysts’ expectations of $0.24 and the year-ago loss of $0.06 per share.
The wider-than-expected loss is “primarily due to aggregate unrealized losses related to the revaluation of Uber’s Grab, Aurora, and Didi stakes,” the company said.
Mobility revenue surged 195% year-over-year to $2.5 billion, Delivery revenue went up 44% to $2.5 billion, and Freight revenue skyrocketed 506% to $1.8 billion. It was the first full quarter in which the company reported revenues from Uber Freight and Transplace together.
Adjusted EBITDA totaled $168 million versus a loss of $359 million in the first quarter of last year. Gross bookings jumped 35% to $26.4 billion.
Dara Khosrowshahi, the CEO of Uber, said, “In April, Mobility gross bookings exceeded 2019 levels across all regions and use cases…With free cash flow approaching breakeven in Q1, we now expect to generate meaningful positive free cash flows for full-year 2022.”
Guidance
For the second quarter, the transportation networking company expects gross bookings to range from $28.5 billion to $29.5 billion and adjusted EBITDA to lie between $240 million and $270 million.
Wall Street’s Take
Following the results, RBC Capital analyst Brad Erickson maintained a Buy rating on the stock but lowered the price target to $46 from $50 (63.7% upside potential).
The analyst has reduced the price target “on views that the market simply needs to see further progress on EBITDA and free cash flow before ascribing a higher value.”
Overall, the stock has a Strong Buy consensus rating based on 25 Buys and one Sell. UBER’s average price target of $58.92 implies 109.7% upside potential.
Website Traffic
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (NYSE: SEMR), the world’s biggest website usage monitoring service, offers insights into Uber’s first-quarter performance.
According to the tool, Uber’s website traffic registered a 34% rise in global visits in March, compared to February. Further, the footfall on the company’s website has grown 133.2% year-to-date against the same period last year.
The uptrend in the company’s website visits supports the year-over-year rise in its revenue. This shows that TipRanks’ website traffic tool helps in making reliable predictions about a company’s results.
Conclusion
The COVID-19 pandemic continues to hurt UBER stock, which has lost 25.2% over the past three months, 40.5% in the last six months and 45.1% over the past year. We, at TipRanks, expect the stock price to recover in the near term as lockdowns across the world ease and people start stepping out like pre-COVID times.
Learn more about the Website Traffic tool in this video by Youtube sensation Tom Nash.
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