Uber’s Q1 Stumble – May 8, 2025: Is the Ride-Hailing Giant Losing Its Drive?
Summary
- Q1 FY2025 EPS beat at $0.83 vs. $0.49 expected
- Revenue came in at $11.53B, just under the $11.59B estimate
- Gross bookings totaled $42.82B, missing forecast
- Year-over-year revenue increased 14%, but shares fell 4.1% after the report
- Q2 outlook projects up to $47.25B in bookings and adjusted EBITDA between $2.02B–$2.12B
Mixed Q1 Results Hit Market Sentiment
Uber Technologies Inc. (NYSE: UBER) delivered mixed results for the first quarter of fiscal year 2025, with earnings outperforming analyst expectations but revenue falling slightly short. The company reported earnings per share (EPS) of $0.83, significantly ahead of the projected $0.49.
Despite this profit beat, revenue came in at $11.53 billion, marginally lower than the expected $11.59 billion, causing shares to decline more than 4% in after-hours trading. The mild revenue miss, coupled with softness in bookings, dampened enthusiasm following the earnings call.
Bookings Growth Slows Against High Expectations
Total gross bookings for Q1 reached $42.82 billion, which fell short of the $42.99 billion forecast. Though still reflecting double-digit year-over-year growth, the market had priced in stronger activity amid recovering global travel and delivery volume.
Segment performance was solid:
- Mobility bookings increased 13% YoY
- Delivery bookings rose 15%, continuing to drive growth in Uber Eats
- Freight, though stabilizing, remained pressured by softer rates globally
Monthly active users climbed, reaching 170 million globally — a 14% increase YoY. In total, Uber facilitated 3.04 billion trips in Q1, up 18% from a year ago.
Profitability Metrics Point to Underlying Strength
Uber’s net income reached $1.78 billion, a massive reversal from the $654 million loss reported in Q1 2024. The company attributed this to tighter cost controls, continued recovery in core ride volumes, and improved take rates.
Uber has now delivered several quarters of positive adjusted EBITDA, signaling operational efficiency gains across its three major business lines: Mobility, Delivery, and Freight.
Autonomous Vehicles and Platform Expansion
CEO Dara Khosrowshahi emphasized autonomous vehicle (AV) integration as a central pillar of Uber’s long-term growth. In Q1:
- The company reached a 1.5 million annualized trip run rate for AVs
- Its partnership with Waymo expanded to over 100 active vehicles in Austin, Texas
- Uber continues to scale AV collaborations with Aurora, May Mobility, Avride, and Volkswagen
Internationally, new pilot programs with WeRide, Pony.AI, and Momenta are underway, reflecting a broader shift to hybrid human-autonomous logistics platforms.
Q2 Forecast and Market Outlook
For the current quarter (Q2 FY2025), Uber issued the following guidance:
- Gross bookings: $45.75B to $47.25B
- Adjusted EBITDA: $2.02B to $2.12B
Analysts remain divided. Some see the Q1 weakness as transitory, pointing to strength in ride volumes and cost efficiencies. Others warn that growth in Mobility and Delivery is flattening just as AV investment costs begin to rise.
Investor reaction post-earnings was lukewarm, with some trimming positions ahead of anticipated Fed rate decisions and broader tech sector volatility.
Final Thoughts
Uber’s Q1 2025 earnings highlight a company in transition — profitable and growing, yet struggling to meet high expectations in a competitive environment. Despite a solid EPS beat, investor concern over bookings softness and a slight revenue miss weighed on short-term sentiment.
Looking ahead, Uber’s AV strategy, international expansion, and service diversification (including freight and healthcare mobility) could reignite bullish momentum. But the road to $100+ share price territory will likely require stronger top-line beats and clearer user monetization trends in H2.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Always do your own research and consult with a licensed financial advisor before making financial decisions.
