Uber Earnings: What To Look For From UBER

Adam Hejl /
2022/05/03 7:18 am EDT
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Ride sharing and on demand delivery service Uber (NYSE: UBER) will be announcing earnings results tomorrow afternoon. Here's what investors should know.

Last quarter Uber reported revenues of $5.77 billion, up 82.6% year on year, beating analyst revenue expectations by 7.85%. It was a very strong quarter for the company, with an exceptional revenue growth and an impressive beat of analyst estimates. The company reported 118 million paying users, up 26.8% 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 110% year on year to $6.1 billion, improving on the 11% year-over-year decline in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.11 per share.

Uber Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing five upwards and one downward revision over the last thirty days. The company missed Wall St's revenue estimates three times over the last two years.

Looking at Uber's peers in the consumer internet segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Expedia delivered top-line growth of 80.4% year on year, missing analyst estimates by 0.06% and Snap reported revenues up 38% year on year, missing analyst estimates by 0.57%. Snap was up 8.2%, while Expedia was up 4.7% on the results. Read our full analysis of Expedia's results here and Snap's results here.

The technology sell-off has been putting pressure on stocks since November and consumer internet stocks have been swept alongside with it, with share price down on average 19.6% over the last month. Uber is down 16.5% during the same time, and is heading into the earnings with analyst price target of $58.2, compared to share price of $30.45.

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.