Tech

Uber’s earnings double, but stocks fall after Lyft warns of rising driver costs

Uber Technologies Of a corporation

UBER -4.65%

Revenues more than doubled from the previous quarter as demand for vehicles recovered from the recession caused by the Covid-19 surge at the end of last year and the company’s food deliveries increased despite the reopening of restaurants.

Uber announced a bullish outlook this quarter, but Wednesday’s share price fell about 5%, partly due to rivals.

Lyft Of a corporation

LYFT -29.91%

Results from 1 day ago..

Lyft is an investor Adjusted revenue forecast weaker than expected Tuesday. Stock prices fell more than 35% on Wednesday, the largest decline during the day since it was released in 2019. It fell by 30%. The company said it spends more to motivate drivers to return to the platform, which will weigh on revenue this quarter.

Uber and Lyft Annual driver shortagePushing up the price of vehicles.

Uber said Wednesday that the driver base was at a high post-pandemic level and didn’t have to spend a fortune to increase supply. Many ride-sharing drivers switched to food delivery during the pandemic. Uber said it has a food delivery business and is well suited to invite drivers to switch to ferry customers again. Lyft does not have a delivery arm.

Uber had previously planned to announce results after the market closed on Wednesday, but the market opens in fears that the broader sale triggered by the release of Lyft could involve shares. Moved it before.

Both companies’ shares have underperformed this year due to rising gas prices, labor shortages and concerns that the new Covid-19 variant could weigh on their growth. Uber and Lyft shares have fallen about 30% this year until Tuesday’s closing, while the Nasdaq Composite fell 20%.

In the three months to March, Uber said revenues more than doubled from the previous year to $ 6.85 billion. Analysts surveyed by FactSet expect to generate $ 6.09 billion in revenue. High fare also contributed to profits.

Uber said growth is expected to continue this quarter. The value of vehicles booked in April is above 2019 levels, with total bookings expected to be between $ 28.5 billion and $ 29.5 billion this quarter. Wall Street expected a quarterly booking ending in June to be $ 28.39 billion.

Uber Eats has grown larger than Uber’s core ride business during the pandemic.


Photo:

Akiocon / Bloomberg News

Uber forecasts interest, taxes, depreciation and unamortized adjusted earnings of $ 240 million to $ 270 million this quarter, compared to Wall Street’s average estimate of $ 246 million. increase.

Posted by Uber and Lyft First quarter profit With this coordinated measure last year, it states that this demonstrates the strength of their underlying business. This metric removes costs such as write-downs, income tax, and stock-based compensation.

Uber posted rare net income due to investments in other companies, but neither company recorded net income due to the power of its business.

Uber’s first-quarter net loss increased from $ 108 million in the previous year to $ 5.93 billion.The loss came from an investment in the Chinese Ride Hailing Giants

Didi Global Ltd,

Southeast Asia

Grab Holdings Ltd.

When

Aurora Innovation Ltd.

The loss was wider than the analyst’s expectation of $ 494 million. Uber’s adjusted revenue for the previous quarter was $ 168 million, ahead of Wall Street’s expectations.The company said that Expected to have positive cash flow This year is all year round.

The average Uber or Lyft fare this summer is 50% higher than it was before the pandemic. But even before the lockdown began, prices were rising. This is why rideshare prices have skyrocketed and how companies are working to get them back. Composite photo: David Fang / WSJ

Riders are returning to Uber and Lyft faster than drivers. Vehicle prices broke records last year due to labor shortages. According to market research firm Yipit Data, ride prices have begun to fall from last summer’s highs, but have begun to rise again this year. According to YipitData, the two companies have imposed a small fuel surcharge on riders to offset the pain of rising gasoline prices that affected average prices.

Uber said Wednesday that rider wait times and “surge trips” that began when there was a shortage of drivers were among the highest in the first quarter year.

Uber reported record food delivery reservations in the first quarter, demonstrating business resilience even when restaurants reopen. During the pandemic, Uber Eats has grown larger than Uber’s core ride business, and unit bookings continue to outpace rides. Delivery bookings for the quarter were up 12% year-on-year to $ 13.9 billion, a significant drop from nearly three times a year ago.

March Uber List all New York City taxis in that app The second half of this spring. Rideshare and food delivery companies also reached a regulatory milestone in Washington in the same month. The state has passed a law that maintains the labor model of the company’s independent contractors. Uber, Lyft, and other companies that rely on so-called gig workers Fought with regulatory agencies across the country Whether their drivers should be classified as employees or independent contractors.

The company has spent over $ 200 million Ballot for 2020 To overturn California law that forced drivers to be classified as employees.After California wins, Uber and others said they would. Robbie in other states To maintain their gig worker model.

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Write to Preetika Rana at preetika.rana@wsj.com

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Uber’s earnings double, but stocks fall after Lyft warns of rising driver costs

Source link Uber’s earnings double, but stocks fall after Lyft warns of rising driver costs

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