Uber Beats Q1 Estimates, Lifts Q2 Outlook

Uber Technologies reported stronger-than-expected first-quarter gross bookings and issued upbeat guidance for the second quarter, boosting its shares nearly 9 percent in premarket trading Wednesday.

The San Francisco-based company posted gross bookings of $53.7 billion for the March quarter, a 21 percent increase from a year earlier and above analysts' average estimate of $52.8 billion. Revenue reached $13.2 billion, up 14 percent but slightly below the $13.28 billion forecast. Adjusted earnings per share came in at 72 cents, surpassing the 69-cent consensus. Total trips grew 20 percent to 3.64 billion, while monthly active platform users rose 17 percent.

Chief Executive Dara Khosrowshahi noted the results came amid headwinds including U.S. winter storms, elevated gasoline prices and the Middle East conflict. Ride-hailing revenue missed projections, but delivery and freight segments outperformed. Freight returned to year-over-year growth for the first time in nearly two years, a development Khosrowshahi described as an early positive sign.

Uber attributed operational improvements to greater use of artificial intelligence tools, which enhanced productivity and allowed a slower...