Mobility and Delivery lead Uber to strong start in 2025

ByInvestment Club

Overview

Uber Technologies delivered another quarter of profitable growth at scale, with strong trip and user growth driving record operational income and cash flow.

CEO Dara Khosrowshahi stated: “We kicked off the year with yet another quarter of profitable growth at scale, with trips up 18% and even stronger user retention. Supported by the consistent strength of our core business, we continue to build towards the future, including five new autonomous vehicle announcements in just the last week.”

Q1 2025 vs. Q1 2024:

  • Trips grew to $3.0bn (+18% YoY), driven by Monthly Active Platform Consumers (“MAPCs”) growth of 14% YoY and monthly Trips per MAPC growth of 3% YoY.
  • Gross Bookings rose to $42.8bn (+14% YoY), with strength across Mobility (+13% YoY) and Delivery (+15% YoY), offset slightly by Freight softness (-2% YoY).
  • Revenues increased to $11.5bn (+14% YoY), driven by strong volume, pricing, and take rate improvements.
    • Mobility revenue was $6.5bn (+15% YoY), with higher trip volume and rider frequency.
    • Delivery revenue was $3.78bn (+18% YoY), with expanded verticals and premium offerings fueling growth.
    • Freight revenue was $1.26bn (-2% YoY), with ongoing macro headwinds, but segment remains under strategic review.
  • Income from operations were on a strong upward trend, reaching a value of $1.23bn (vs. $172m in Q1 2024).
  • Net income recorded a value of $1.78bn (compared to -$654m in Q1 2024), including $51m net benefit from equity revaluations (vs. -$721m in prior year).
  • Adjusted EBITDA was $1.87bn (+35% YoY), with a margin which rose to 4.4% of Gross Bookings (compared to 3.7% in Q1 2024).
  • Net cash provided by operating activities increased to $2.32bn (+64% YoY), while free cash flow also grew to $2.25bn (+66% YoY), supported by operating leverage and strong working capital discipline.
  • Uber ended Q1 2025 with $6.0bn in unrestricted cash and investments.
  • The company also repurchased $1.8bn in shares during the quarter as part of its capital return plan.

For Q2 2025, Uber expects gross bookings between $45.75bn and $47.25bn, representing 16-20% year-over-year growth in constant currency. Adjusted EBITDA is projected in the range of $2.02bn to $2.12bn, reflecting a 29-35% YoY increase. While management noted a potential 1.5 percentage point FX headwind, primarily impacting the Mobility segment, they remain confident in Uber’s growth trajectory, supported by expanding user engagement, platform efficiency, and continued margin expansion across its core businesses.

The quarterly results, which were slightly below Wall Street analysts’ estimates, caused UBER’s stock price to fall by approximately -2.5% on the trading day of the report’s publication. However, since the beginning of the year, the company’s share price has been on a strong upward trend, increasing by over +38.6%, especially after Warren Buffet’s announcement of a significant purchase of UBER shares. Although the financial results were followed by a slight price correction, the technical context remains positive. Holding above the major moving averages suggests support from investors in the medium term. However, selling pressure in the $85 area indicates a possible consolidation before a possible continuation of the upward trend. Confirmation of a resumption of growth would require a clear breakthrough above this resistance, supported by volume.

Source: TradingView

Author: Ionuț-Adrian Lazar

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