Uber misses revenue expectations with trips up 18% over last year

Published

15 hours ago

May 7, 2025

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Dara Khosrowshahi, CEO of Uber attends the 55th annual World Economic Forum (WEF) meeting in Davos, Switzerland, January 23, 2025.

Yves Herman | Reuters

Uber reported first-quarter results Wednesday that beat analysts’ expectations for earnings, but fell shy of anticipated revenue growth for the quarter. Shares fell about 5% following the report.

Here’s how Uber did versus analysts’ estimates compiled by LSEG:

Earnings per share: 83 cents vs. 50 cents expected.
Revenue: $11.53 billion vs. $11.62 billion expected.

Revenue at the ride-sharing company grew about 14% in the first three months of 2025, up from $10.13 billion during the same period in 2024.

The company also reported net income of around $1.78 billion or 83 cents per share during the first three months of 2025, up from a net loss of $654 million, or a loss of 32-cent loss per share, during the first quarter of 2024.

Uber CEO Dara Khosrowshahi and CFO ‭Prashanth Mahendra-Rajah said they expect gross bookings to reach between $45.75 billion and $47.25 billion during the current quarter, with EBITDA in the range of $2.02 billion to $2.12 billion for that period.

In April, the Federal Trade Commission sued Uber and accused the company of “deceptive billing and cancellation practices” around its subscription service called Uber One.

“It’s a bit of a head-scratcher for us,” Khosrowshahi told CNBC’s “Squawk Box” on Wednesday.

He said 60% of the company’s gross bookings in its Uber Eats business come from Uber One members, and that the subscription service is growing quickly.

“The suit alleges that some people don’t realize that they’re signing up or cancellations are difficult, but I’d encourage you to go experience it yourself,” Khosrowshahi said. “It’s very, very simple. You take a couple of steps to be able to cancel if you want.”

Uber’s largest business segments, which include its ride-hailing business and food and grocery delivery service, saw bookings increase year-over-year.

Here are the key segment numbers:

Mobility (gross bookings): $21.18 billion, up 13% year over year
Delivery (gross bookings): $20.38 billion, up 15% year over year

The company also said its “monthly active platform consumers,” had grown to 170 million, up 14% from the first quarter of last year. Users booked around 3.04 billion “trips” during the first quarter of 2025, up 18% from the first quarter of 2024.

Khosrowshahi also said the company views autonomous vehicles, or AV technology, as “the single greatest opportunity ahead for Uber.”

Uber allows app users to book robotaxi rides in some U.S. markets, or order food for delivery via autonomous vehicle in others.

Khosrowshahi said Uber reached an “annual run-rate” of 1.5 million autonomous vehicle trips.

In March, the company began to offer users in Austin, Texas the option to hail a robotaxi from its partner, Alphabet-owned Waymo exclusively via the Uber platform.

Khosrowshahi said the Waymo Austin launch “exceeded” Uber’s expectations and around 100 Waymo vehicles operating in Austin are now‬‭ “busier than over 99% of all drivers” in Austin as far as completed trips per day.

Besides its Waymo partnership, Uber has also agreed to work with Volkswagen, Avride, May Mobility, and the autonomous trucking company Aurora for autonomous ride-hailing and freight services in the U.S. Uber has additional partnerships with AV companies internationally including with WeRide, Pony.AI and Momenta.

“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,” Khosrowshahi said in a release.

Executives are scheduled to discuss Uber’s first-quarter results and plans during an earnings call Wednesday at 8:00 a.m. EDT.

Technology

Arm shares drop on weak forecast

Published

5 hours ago

May 7, 2025

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Rene Haas, CEO of chip tech provider Arm Holdings, holds a replica of a chip with his company’s logo on it, during an event in which Malaysia’s Prime Minister Anwar Ibrahim officially announces a $250 million deal with the company, in Kuala Lumpur, Malaysia March 5, 2025.

Hasnoor Hussain | Reuters

Arm shares dropped more than 8% in extended trading on Wednesday after the chip-design company issued weaker-than-expected guidance for the current quarter.

Here’s how the company did in the fiscal fourth quarter compared with LSEG consensus:

Earnings per share: 55 cents, adjusted vs. 52 cents expected
Revenue: $1.24 billion vs. $1.23 billion

While Arm topped estimates for the quarter ended March 31, Wall Street is looking ahead to the company’s forecast for the first quarter.

Arm said revenue will be between $1 billion and $1.1 billion. The middle of the range is below the $1.1 billion average analysts estimated, according to LSEG. Earnings per share will be between 30 cents and 38 cents, while analysts were expecting 42 cents.

SoftBank controls about 90% of Arm, and took the company public in 2023. It now has a market cap of over $130 billion as of Wednesday’s close.

Arm designs the fundamental architecture upon which many chips are built, and sells licenses for its designs to companies such as Qualcomm and Nvidia, charging royalty fees on each sale they make. The company claims 99% of premium smartphones are powered by Arm technology.

Royalty revenue in the quarter rose 18% from a year earlier to $607 million.

Net income fell 6% to $210 million, or 20 cents a share, from $224 million, or 21 cents, in the year-ago quarter. Revenue jumped 34% from $928 million a year earlier.

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Technology

AppLovin shares pop on earnings beat as it announces sale of mobile gaming business

Published

5 hours ago

May 7, 2025

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AppLovin shares pop on earnings beat as it announces sale of mobile gaming business

Thomas Fuller | SOPA Images | Lightrocket | Getty Images

AppLovin shares soared as high as 15% in extended trading after the company reported earnings and revenue that beat expectations and announced the sale of its mobile gaming business.

Here’s how the company did compared to LSEG consensus estimates:

Earnings: $1.67 per share vs $1.45 per share expected
Revenue: $1.48 billion vs $1.38 billion expected

AppLovin also agreed on Wednesday to sell its mobile gaming business to Tripledot Studios in a deal worth $400 million in cash considerations. The advertising tech company will also obtain a roughly 20% ownership stake in Tripledot Studios, which makes mobile games like Sudoko Friends, Puzzletime and Solitaire Classic.”

The deal is expected to close in the second quarter of 2025.

AppLovin said second-quarter sales should come in the range of $1.2 billion to $1.22 billion, trailing analysts expectations of $1.38 billion.

The company reported first-quarter net income of $576 million, or $1.67 per share, up from $234 million, or 67 cents per share, in the same quarter of 2024.

AppLovin total costs and expenses for the first quarter came in at $820.55 million, representing a 14% increase from the previous year during the same quarter.

The ad-tech firm said in February that it had signed a term sheet to sell its apps business for “total estimated consideration” of $900 million, which included $500 million in cash.

AppLovin’s business has been split between advertising and apps, which is primarily made up of game studios that the company has acquired over the years. With the historic growth in its advertising unit, due to rapid advancements in artificial intelligence, the apps business had become much less important.

The company logged $1.16 billion in first-quarter advertising sales, up from the $678 million it recorded a year ago during the same period.

Sales of the company’s apps-related business for the quarter came in at $325 million, which was a 14% decline from the prior year.

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Technology

Nvidia shares climb on report Trump will end chip export restrictions

Published

6 hours ago

May 7, 2025

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Nvidia shares climb on report Trump will end chip export restrictions

Nvidia CEO Jensen Huang (R) speaks alongside US President Donald Trump speaks about investing in America, at the White House in Washington, DC, on April 30, 2025.

Jim Watson | AFP | Getty Images

Nvidia shares rose on Wednesday on a report that the Trump administration plans to revise a set of chip trade restrictions called the “AI diffusion” rule.

The rule, which was proposed in the last days of the Biden administration, organizes countries into three different tiers, all of which have different restrictions on whether advanced AI chips like those made by Nvidia, AMD, and Intel can be shipped to the country without a license.

The Trump administration plans to rescind the rule, Bloomberg reported on Wednesday. The chip restrictions were scheduled to take effect on May 15.

Nvidia had no comment on the reported move by the Trump administration.

Chipmakers including Nvidia and AMD have been against the rule.

AMD CEO Lisa Su told CNBC on Wednesday that the U.S. should strike a balance between restricting access to chips for national security and providing access, which will boost the American chip industry.

Nvidia CEO Jensen Huang said earlier this week that being locked out of the Chinese AI market would be a “tremendous loss.”

Read the full Bloomberg story here: Trump to Rescind Global Chip Curbs Amid AI Restrictions Debate

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