Uber: quarterly results address investor concerns; shares up
(CercleFinance.com) - Less than a month after its IPO, US ride-sharing giant Uber reported in-line first quarter results last night, which sent its shares up over 2% in morning trading.
The San Francisco-based company said it gross bookings grew by 34% in the quarter ended 31 March, with revenue up 20% at 3.1 billion dollars.
Loss from operations widened to over 1 billion dollars, compared to just 478 million dollars one year earlier.
Uber said the results were "at or near the high end of the ranges" it gave last month in its IPO process.
"There were no surprises," analysts at Susquehanna concur, maintaining their "neutral" rating and 42-dollar price target on the share.
The only surprise, is that the company did not provide full-year revenue or EBITDA guidance, the broker said.
On a brighter note, Uber gave signs of more rational competitive dynamics in some markets, Susquehanna adds.
"Uber stated that it is beginning to see signs of less aggressive pricing by some ridesharing competitors," it noted.
Analysts at Wedbush seem to agree. "Uber's results addressed many concerns investors had been hoping to clarify," the broker said, maintaining its "outperform" rating on the stock with a 65-dollar price target.
After rising over 2% when the market opened, the Uber share is currently up 1% at 40.2 dollars, outperforming a lacklustre Nasdaq index (-1.4%).
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