Uber (UBER) reported mixed first quarter results but forecast a strong current quarter outlook, indicating its business was still going strong in light of concerns about the overall economy. However, shares were still lower in premarket trading.
Uber reported Q1 gross bookings of $42.8 billion vs. estimates of $43.1 billion, per Bloomberg consensus, up 18% on a constant currency basis. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at $1.9 billion vs. $1.84 billion estimated, up 35% year over year.
Uber’s closely watched outlook was better than expected, with gross bookings for the second quarter expected in a range of $45.75 billion to $47.25 billion and analysts expecting $45.85 billion. Uber forecast Q2 adjusted EBITDA of $2.02 billion to $2.12 billion, compared to $2.05 billion expected.
Uber stock dropped over 2% in midday trade as investors may have been expecting better projections.
Read more about Uber’s stock moves and today’s market action.
“We kicked off the year with yet another quarter of profitable growth at scale, with trips up 18% and even stronger user retention,” Uber CEO Dara Khosrowshahi said in a statement.
“We delivered over $2 billion of quarterly free cash flow, with multiple levers in our control to generate industry-leading cash flow growth,” added Uber CFO Prashanth Mahendra-Rajah.
Uber said its Q1 monthly active platform consumers (MPACs) grew 14% to 170 million. The company saw revenue growth in its core ride-hailing (up 15%) and delivery (18%) segments, though freight fell 2%.
Though Uber did not indicate that President Trump’s trade wars and other economic policies were going to affect growth, the larger concern is that a weaker consumer may not partake in Uber’s ride-hailing and delivery offerings. Khosrowshahi added in his prepared remarks that against a “dizzying backdrop of headlines on trade and economic policy,” Uber delivered a “strong start to the year.”
Uber is focused on future initiatives as well, including driverless offerings.
“Supported by the consistent strength of our core business, we continue to build towards the future, including five new autonomous vehicle announcements in just the last week,” Khosrowshahi said.
In addition to its Uber-Waymo partnership, which the company is offering in Atlanta and Austin, the company inked two other notable deals.
Uber and WeRide announced a significant expansion of their previously announced strategic partnership on Monday, adding 15 cities globally over the next five years, including in Europe. The partnership began with rides in Abu Dhabi and Dubai.
In addition, Pony AI (PONY) and Uber announced a strategic partnership on Tuesday to deploy Pony AI’s robotaxis onto the Uber platform in the Middle East.
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on X and on Instagram.
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