What do you think of the Uber share? I will continue to buy here
Uber Technologies posted solid results in the first quarter of 2025, but these caused mixed reactions on the financial markets. While the company was able to significantly increase its profitability, some key figures fell slightly short of expectations.
📊 Financial highlights Q1 2025
- Revenue: $11.53 billion - an increase of 14% compared to the previous year, but just below analysts' expectations of $11.62 billion
- Net income: $1.78 billion profit, compared to a loss of $654 million in the same quarter last year.
- Adjusted EBITDA: $1.87 billion - an increase of 35% year-on-year, with a margin of 4.4% of gross bookings.
- Gross bookings: $42.82 billion - an increase of 14% year-on-year, but slightly below guidance of $43.05 billion.
- Free cash flow: $2.3 billion - an increase of 66% compared to the previous year.
🚗 Segment performance
- Mobility (Ride-Hailing): Revenue growth of 15% to $6.5 billion.
- Delivery services (Uber Eats & Co.): Sales increase of 18% to $3.8 billion.
- Freight business: slight decline of 2% to $1.26 billion due to a difficult market environment and volatile trading conditions.
📈 User growth & engagement
- Monthly active platform users (MAPCs): 170 million - an increase of 14 % compared to the previous year.
- Number of journeys: 3.04 billion - an increase of 18% compared to the same quarter of the previous year.
🔮 Outlook for Q2 2025
- Forecasted gross bookings: Between $45.75 and $47.25 billion - an expected year-on-year growth of 16% to 20%.
- Expected adjusted EBITDA: Between $2.02 and $2.12 billion - an increase of 29 % to 35 % compared to the previous year.
🤖 Strategic initiatives & partnerships
Uber is increasingly focusing on autonomous vehicle technologies and has recently announced partnerships with companies such as Waymo, Pony AI, WeRide and May Mobility. These collaborations are intended to drive the use of robotaxis in cities such as Austin, Phoenix and soon Atlanta.
In addition, Uber has acquired an 85% stake in Trendyol GO, a Turkish food and meal delivery company, for approximately $700 million to expand its presence in the delivery segment.
📉 Market reaction
Despite the positive developments, Uber shares fell by over 6% in pre-market trading following the publication of the quarterly figures. Analysts attribute this to the slight shortfall in revenue and gross bookings.
🧭 Conclusion
Uber delivered a strong operating performance in the first quarter of 2025 with a significant increase in profitability and robust user growth. Nevertheless, challenges such as the weakening freight business and macroeconomic uncertainties remain. However, strategic investments in autonomous mobility and international expansion could ensure further growth in the long term.
