Uber shares fall after surprise Q1 net loss

The news: Shares in ride-hailing and food delivery firm, Uber, fell over 9% during trading on Wednesday, after the company reported unexpected losses and a weak Q2 forecast.

The numbers: Uber reported operating profit of USD172 million ($261.58 million) for the first three months of 2024, coming in significantly below analysts’ expectations of over USD600 million. While revenue for the quarter increased 15% to USD10.1 billion, Uber posted a net loss of USD654 million for the period, missing estimates and widening significantly from the USD157 million in net losses it reported for the same quarter last year. Wednesday’s share price losses pushed the company’s gains for the year down to 11%.

The context: During Wednesday’s earnings call, the company explained that income from operations declined sequentially, primarily due to “discrete legal and regulatory reserve changes and settlements” and that it is currently “resolving several legacy matters.”

Uber agreed to pay $271.8 million to settle a class-action suit brought by Australian taxi drivers earlier this year, and is currently facing off with GoCatch in the Supreme Court in another matter downunder. GoCatch alleges Uber breached transport laws and allowed unregistered drivers to operate on its ridesharing app while it sought to "squash" its Australian rival. The company has also alleged Uber engaged in corporate espionage and is seeking damages in its lawsuit.