Uber earnings preview -- Expectations elevated for another strong quarter as healthy rideshare demand and market share gains should provide a lift (32.94 +1.88)
Before the open, rideshare and food delivery company Uber (UBER) is scheduled to report 1Q23 results with a conference call following at 8:00 a.m. ET. For the quarter, UBER is expected to post EPS and revenue of $0.15 and $8.7 bln, respectively.
Beyond the main headline EPS and revenue numbers, adjusted EBITDA is the key metric that many participants will be monitoring. When UBER posted upside Q4 earnings on February 8, it also reported that adjusted EBITDA increased by $579 mln yr/yr to $665 mln -- a record high for the company, and well above its guidance of $600-$630 mln.
In that Q4 earnings report, it guided for Q1 adjusted EBITDA of $660-$700, representing an increase of more than 300% yr/yr at the midpoint.
Another key metric is gross bookings, which grew 19% in Q1 to $30.7 bln. By segment, Mobility Gross bookings increased 31% yr/yr to $14.9 bln while Delivery bookings were higher by 6% to $14.3 bln.
For Q1, UBER guided for total Gross Bookings growth of 20-24% on a constant currency basis.
There are a few primary catalysts that are reigniting UBER's rideshare business. An increasing number of employees are returning to the office and are commuting using public transportation, including rideshares, as vehicle prices have skyrocketed. Additionally, demand for more profitable airport rides remains robust, and there are plenty of drivers available to make those trips.
In fact, active drivers reached an all-time high in Q4 and continued to grow in January as more people look for ways to supplement their incomes.
Due to the strong driver supply, UBER is able to pull back further on the incentives that cut into its margins and profits a year ago.
As a result, Mobility's adjusted EBITDA is soaring, jumping by 76% last quarter.
Market Data 
Markets 
AI
