Uber’s new partnership with Instacart, which allows customers to order Uber Eats-fetched food via the Instacart app, adds a “very high-quality and highly targeted suburban audience” to the Uber Eats ecosystem and for the company’s merchants, CEO Dara Khosrowshahi says on a call with analysts. The additional demand from these new high-end consumers is going to be welcomed by the merchants and increase penetration with Dominos and other merchants in the suburbs, the CEO says. Shares slide 6% to $66.21.

Uber’s gross bookings, or the value of transactions on its app, were up 20% at $37.65B in 1Q but missed analyst projections. The number of app users increased 15% during the quarter and frequency of use increased 6%, but pricing was relatively flat, CFO Prashanth Mahendra-Rajah says on a call with analysts, adding that the company expects to see similar trends in 2Q. Uber’s 2Q guidance includes a 5 percentage point headwind to gross bookings in its ride-hailing business from forex changes related to the Argentine peso, the CFO says.

Uber Technologies’ (UBER) underlying business continues to be “healthy,” even as the ride-hailing company posted mixed Q1 financial results, Wedbush Securities said Wednesday. The company’s Q1 net loss widened year-over-year to $0.32 per share from $0.08 per share, while revenue grew 15% to $10.13 billion. Analysts polled by Capital IQ expected EPS of $0.22 on revenue of $10.09 billion. The company’s shares were down over 7% in recent trading. “We think investor expectations have gotten ahead of the stock following the company’s analyst day in mid-February,” Wedbush analysts, including Daniel Ives, said in a note. Markets and investors likely also overlooked recent currency headwinds, they said. Wedbush reiterated its outperform rating on the Uber stock, saying the company continues to be “the dominant global mobility and delivery platform with multiple drivers of long-term growth.”

We cut our 12-month target to $81 from $93 on a P/E of 35x our 2025 EPS (18x our 2025 FCF). We cut our 2024 EPS to $1.00 from $2.22 and 2025’s to $2.32 from $3.63. Gross bookings grew 20%, led by strong growth in Mobility (+26%) and Delivery (+18%). Trips grew 21%, driven by a 15% rise in MAPC and a 6% uptick in frequency (trips/MAPC). Despite top-line strength, net loss widened to $654M (LPS of $0.31 vs. $0.08) due to a $72M unrealized loss from equity investment reevaluation. Yet, UBER demonstrated operating leverage, with 82% growth in adj-EBITDA to $1.4B and $4.2B trailing-12-month FCF generation. Key growth drivers include UberOne’s 45% penetration of delivery of gross bookings, new affordable offerings like Moto and Xshare for volume, and grocery growth. We also like Instacart’s partnership expanding consumer reach, complementing geographic expansion and multi-product portfolio. UBER’s geographic expansion, new user

The following is a summary of the Uber Technologies, Inc. (UBER) Q1 2024 Earnings Call Transcript: Financial Performance: Uber reported a growth of 21% YoY in trips, reflected similarly in gross bookings growth for Q1 2024. The company recorded an adjusted EBITDA of $1.4 billion, representing an 82% YoY increase. Uber generated a free cash flow of $4.2 billion in the trailing 12 months. The company projects over 20% YoY growth on a constant currency basis for Q2 2024. Uber’s new products contributed to over 20% of its new customer base, reflecting an 80% YoY growth. Delivery EBITDA margins were increased by around 20% sequentially despite robust business growth. Uber reached a $900 million run rate for advertising in Q4 of 2023. Business Progress: Uber experienced the best week in terms of gross bookings signalling strong demand for the service. Driver and courier numbers on the platform have increased to