Shares of Uber Technologies surged nearly 10% in premarket trading on Wednesday after the company reported first-quarter results that exceeded analyst expectations, supported by strong growth in trips and gross bookings.
The ride-hailing platform posted adjusted earnings of 72 cents per share, ahead of FactSet estimates of 69 cents.
Revenue rose 14% year-on-year to $13.2 billion, slightly below Wall Street expectations, but growth in core metrics helped offset concerns about the top-line miss.
Chief Executive Dara Khosrowshahi said the performance came amid a challenging macroeconomic environment marked by geopolitical tensions, rising fuel prices and adverse weather conditions.
Bookings and user growth remain robust
Uber reported 3.64 billion trips during the quarter, a 20% increase from a year earlier, while monthly active platform users grew 17%.
Gross bookings rose 25% to $53.7 billion, exceeding analyst expectations and highlighting strong demand across its services.
Khosrowshahi said growth was broad-based, spanning both mobility and delivery segments and across regions.
The company also pointed to early signs of recovery in its freight division, which returned to growth after nearly two years of contraction.
Despite posting net income of $263 million, down from $1.78 billion a year earlier, the results were impacted by a $1.5 billion headwind linked to revaluations of equity investments.
Focus on AI and autonomous driving
Uber continues to deepen its investments in artificial intelligence and autonomous vehicle technologies as part of its long-term strategy.
During the quarter, the company introduced new AI-driven tools, including a driver-focused assistant, and expanded its autonomous vehicle partnerships.
Uber is working with companies such as Waymo, WeRide, Waabi, Wayve, Rivian and Nuro to bring self-driving vehicles onto its platform.
The company plans to procure autonomous vehicles from partners once they are deemed safe for driverless operations, while also offering services such as insurance, maintenance and training data to the broader AV ecosystem.
Internally, Uber has accelerated its use of AI to improve efficiency.
The company said 95% of its engineers now use AI coding tools monthly, with more than 10% of its code generated autonomously by AI systems.
Outlook signals continued momentum
Looking ahead, Uber forecast second-quarter adjusted earnings between 78 cents and 82 cents per share, broadly in line with market expectations.
The upbeat outlook reflects the company’s strategy of maintaining stable pricing while expanding into higher-margin segments such as its business platform, helping it offset rising fuel costs and geopolitical pressures.
Growth has also been supported by strong delivery demand in international markets like Australia, alongside expansion into new regions including Denmark.
Gross bookings are projected to range between $56.25 billion and $57.75 billion, above analyst estimates.
The company said it would continue focusing on increasing user engagement and expanding its technology capabilities, even as it remains cautious about the broader economic environment.
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