Uber Technologies Inc. (UBER, Financial) experienced a dip in its Q1 performance, recording a loss of $0.32 per share due to unrealized losses on equity investments and litigation costs. This was significantly below market expectations. Additionally, the company's Q2 gross bookings forecast did not meet analysts' predictions. Meanwhile, Lyft Inc. (LYFT, Financial) reported strong quarterly results, exceeding estimates with improved Q2 bookings and adjusted EBITDA outlook. Lyft's success this quarter can be attributed to enhanced driver supply, reduced ride costs, and shortened wait times.
Despite challenges, Uber reported a 26% increase in Q1 Mobility Gross Bookings, amounting to $18.7 billion, although this was slightly below expectations. The company's CFO pointed out that the absence of events like Brazil's Carnival, which boosted last year's demand, affected this year's bookings. Additionally, the shift in timing of Easter and Ramadan also played a role. However, Uber's Mobility revenue margin saw a year-over-year increase of 130 basis points, reaching 30.2%. The company also managed to reduce non-GAAP sales and marketing expenses to 2.4% of Gross Bookings, down from 3.9% in the previous year, helping to push adjusted EBITDA up by 82% year-over-year to $1.4 billion.
In the Delivery segment, Uber saw a 17% growth in Gross Bookings to $17.7 billion, slightly above expectations. This growth was driven by new user acquisition and increased order frequency. Uber is further aiming to boost this segment through a new partnership with Instacart (CART, Financial), integrating Uber Eats with the Instacart app. Despite these positive developments and ongoing strength in airport rides, Uber's Q2 gross bookings guidance of $38.75-$40.25 billion was still below expectations. The company also anticipates a slight quarter-over-quarter decrease in Mobility's adjusted EBITDA as it plans to increase investments.
Overall, Uber's Q1 results marked a regression from its recent upward trajectory, especially in terms of profitability, with the company returning to a loss. While demand remains robust in both the Mobility and Delivery segments, the lukewarm Q2 guidance suggests a cooling of momentum since the Q4 earnings report in early February.
