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Uber recorded as much as a $5.9 billion equity loss that can be attributed to its equity investments.
American ride-hailing giant, Uber Technologies Inc (NYSE: UBER) has released its Q1 2022 financial performance, and it reported a significant growth in its revenue. By the numbers, the company recorded $6.9 billion in revenue, up 136% year over year (YoY) or 141% on a constant currency basis.
The company said its Gross Bookings topped $26.4 billion, representing a 35% YoY growth of 39% on a constant currency basis and Mobility Gross Bookings was pegged at $10.7 billion, up 58% when compared to this time period last year. Uber noted that its revenue growth rate outpaced that of the Gross Bookings growth rate due to its “acquisition of Transplace by Freight, a change in the business model for our UK Mobility business, and an easier comparison in Q1 2021 due to the accrual for historical claims in the UK.”
Uber remains the market leader among companies providing rides as a service in the United States and in key economies where the company operates. While its performance is still being hampered by the impact of the coronavirus pandemic, the company said some of its key metrics were better in the quarter when compared to other pre-pandemic performances.
“Our results demonstrate just how much progress we’ve made navigating out of the pandemic and how the power of our platform is differentiating our business performance,” said Dara Khosrowshahi, CEO. “In April, Mobility Gross Bookings exceeded 2019 levels across all regions and use cases. There’s never been a more exciting time to innovate at Uber and we’re focused on executing our strategy to grow our platform profitably.”
Uber reported an average of 19 million trips per, affirming the resurgence in demand as several economies unwind from lockdowns that typically tapered down growth.
Uber Revenue Growth and Recorded Loss
For the quarter under review, the company recorded as much as a $5.9 billion equity loss. The firm said it can be attributed to its equity investments.
“Net loss attributable to Uber Technologies, Inc. was $5.9 billion, which includes a $5.6 billion headwind (pre-tax) relating to Uber’s equity investments, primarily due to aggregate unrealized losses related to the revaluation of Uber’s Grab, Aurora, and Didi stakes,” the report reads adding that it incurred as much as $359 million net loss in stock-based compensation expense.
While the company fights ahead for a better quarter and year ahead, it said it will not make as many investments in convincing riders to stay on the app, as it offered incentives to entice drivers to keep up their activities amid the restrictions of the past months.
Overall, Uber seems to have normalized the revenues from both its ride-hailing segments as well as its food delivery units as positive performance in these two offshoots accounts for how well it can continue to rank as investors’ delight in the coming quarters.
At the time of writing, Uber stock is down 7.91% in the pre-market to $27.14