Lawsuits and disappointing guidance are taking a toll on Uber

Lawsuits and disappointing guidance are taking a toll on Uber

Uber reported after-tax earnings of $654 million, or 32 cents per share. per share in the first quarter of 2024. Thus, the loss increased from $157 million, or 8 cents per share. shares in the same period last year.

The operating result was reversed from minus 262 to plus 172 million dollars. Revenues rose 15 percent to $10.1 billion.

The FactSet consensus indicated an after-tax profit of $500 million, while revenue came in as expected.

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“The results once again demonstrate our ability to deliver consistent, profitable growth at scale,” says Uber CEO Dara Khosrowshahi, according to the report in a statement.

However, the market allowed itself to be disappointed, and Uber stock fell more than 8% in early trading Wednesday on Wall Street.

Uber received $37.7 billion in total bookings in the first quarter, an increase of 20% from the same period last year, but less than analysts’ expectations of $37.9 billion.

For the current quarter, the company is guiding for $38.75 to $40.25 billion in total orders and $1.45 to $1.53 billion in EBITDA. Here, analysts received $40 and $1.49 billion, respectively.

Lawsuits carry a lot of weight

It is worth noting that $721 million in write-downs of stock investments affected Uber's accounts in the first quarter of the year. So did the provisions regarding legal actions taken by the company in several countries.

Legal costs included $178 million paid to settle a class action brought by taxi drivers in Australia.

Uber and its competitors are struggling accordingly Financial Times With regulatory headwinds globally, particularly regarding payment of drivers and freight crews. Earlier this month, more than 10,000 London taxi drivers filed a £250 million lawsuit.

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Hanisi Anenih

Hanisi Anenih

"Web specialist. Lifelong zombie maven. Coffee ninja. Hipster-friendly analyst."

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