Uber (UBER) Q1 Earnings: What To Expect

Jabin Bastian /
2023/05/01 3:32 am EDT
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Ride sharing and on demand delivery service Uber (NYSE: UBER) will be announcing earnings results tomorrow before market hours. Here's what to expect.

Last quarter Uber reported revenues of $8.61 billion, up 49% year on year, beating analyst revenue expectations by 1.18%. It was a strong quarter for the company, with exceptional revenue growth and growing number of users. The company reported 131 million paying users, up 11% year on year.

Is Uber buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Uber's revenue to grow 27% year on year to $8.71 billion, slowing down from the 136% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.15 per share.

Uber Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing four downward revisions over the last thirty days. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 4.68%.

Looking at Uber's peers in the consumer internet segment, some of them have already reported Q1 earnings results, giving us a hint what we can expect. Shutterstock delivered top-line growth of 8.11% year on year, beating analyst estimates by 1.77% and Roku reported revenues up 0.99% year on year, exceeding estimates by 4.72%. Shutterstock traded flat on the results, Roku was up 6.18%. Read our full analysis of Shutterstock's results here and Roku's results here.

The whole tech sector has been facing a sell-off since late last year and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share price declining 3.72% over the last month. Uber is down 0.76% during the same time, and is heading into the earnings with analyst price target of $47.6, compared to share price of $31.22.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.