Uber forecasts strong second-quarter bookings despite Middle East woes
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May 6 : Uber Technologies forecast second-quarter bookings above Wall Street estimates on Wednesday on strong demand for ride-hailing and delivery services, even though the Middle East conflict weighed on its growth.
Shares of the San Francisco-based company rose about 9 per cent in premarket trading.
The strong forecast is a sign that the company's strategy of keeping prices steady while pushing into higher-margin areas such as its platform for businesses are paying off, helping it navigate higher fuel costs and geopolitical tensions.
Strong delivery demand in international markets, including Australia, and expansion into new geographies such as Denmark have also helped power growth.
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Uber said it expects gross bookings of $56.25 billion to $57.75 billion for the June quarter, above analysts' average estimate of $56.07 billion, according to data compiled by LSEG.
It factors in a roughly 60 basis-point drag from the Middle East conflict.
The company also forecast second-quarter adjusted earnings per share of 78 cents to 82 cents, slightly above estimates of 79 cents. First-quarter gross bookings totaled $53.7 billion, beating estimates.
Uber said its growing adoption of artificial intelligence tools is helping moderate the pace of hiring by improving productivity across its operations.
Uber has been pushing to expand beyond ride-hailing into a broader platform spanning food delivery, grocery, travel and local commerce, including a recent move into hotel bookings.
The company has focused on growing its Uber One membership program, which has surpassed 50 million users and now accounts for roughly half of its gross bookings.
Uber's revenue in the March quarter came in at $13.2 billion, missing estimates due to severe winter storms in the U.S., the Middle East conflict and higher gasoline prices. Still, adjusted profit per share beat expectations.
Ride-hailing revenue also missed estimates, but delivery and freight sales exceeded expectations, with the latter returning to growth for the first time in nearly two years.
Uber is pursuing a partnership-led approach to autonomous vehicles, working with more than 20 companies to integrate robotaxis onto its platform rather than building the technology itself.
The company said it expects to facilitate autonomous vehicle trips in as many as 15 cities globally by the end of 2026 as it expands partnerships with AV developers.
Smaller rival Lyft is expected to report its first-quarter results on Thursday. Its shares rose about 4 per cent before the bell.
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