Uber Predicts Second Quarter Gross Bookings Below Expectations

Uber’s forecast for second-quarter gross bookings fell short of expectations on Wednesday, causing its shares to plummet nearly 10% before the opening bell. The shortfall in this key metric, which indicates the total revenue earned on the Uber platform, suggests weakened demand for its ride-share and food delivery services.

Despite this setback, Uber’s push for profitability appears to be paying off, as its core profit for the first quarter exceeded Wall Street’s expectations. The company’s report comes on the heels of Lyft’s better-than-expected results and optimistic forecast for the upcoming quarter.

Lyft noted industry-wide growth in ride-share demand and attributed its success to user-friendly features like shorter wait times. Unlike Lyft, which operates primarily in the United States and parts of Canada, Uber boasts a global presence spanning approximately 70 countries and offers a broader range of services, including logistics.

Uber’s CEO, Dara Khosrowshahi, emphasized the company’s diversified growth portfolio and its improving profitability as it continues to scale. Uber anticipates second-quarter adjusted core profit to range between $1.45 billion and $1.53 billion, with the mid-point exceeding analysts’ average estimate.

However, the company expects gross bookings for the second quarter to be in the range of $38.75 billion to $40.25 billion, falling short of the anticipated $40.04 billion. Despite this setback, Uber remains optimistic about its financial performance, having posted an 82% surge in adjusted core profit for the first quarter compared to the previous year, surpassing expectations.