(Reuters) -Uber Technologies forecast second-quarter adjusted core profit and gross bookings largely above Wall Street expectations on Wednesday, indicating resilient demand for its ride-hailing and food delivery services.
The company expects gross bookings to be between $45.75 billion and $47.25 billion for the current quarter. This compared with Wall Street expectations of $45.83 billion.
Ride-hailing demand has remained resilient as a rebound in business travel and stricter enforcement of return to office policies boost intra-city commuting, airport trips and travel within key destinations.
In February, Uber launched its Price Lock Pass, a $2.99 monthly subscription offering consistent fares on designated routes, to attract budget-conscious commuters, competing with a similar feature offered by Lyft.
Total revenue rose 14% to $11.53 billion in the first quarter, slightly below analysts’ expectations of $11.62 billion, according to data compiled by LSEG.
Delivery business revenue jumped about 18%, in line with Street expectations, while it rose 15% in the ride-hailing unit. Sales in its freight division slipped about 2%.
Uber anticipates a 1.5% currency-related drag on second-quarter gross bookings growth, with its Mobility segment facing a steeper 3% impact, as a stronger U.S. dollar reduces the value of earnings from international markets.
The company forecast second-quarter adjusted earnings before interest, taxes, depreciation and amortization – a profitability metric keenly watched by investors – between $2.02 billion and $2.12 billion. Analysts were expecting $2.04 billion.
Uber is intensifying its push into autonomous driving, deepening its partnership with Alphabet’s Waymo and forging new collaborations with robotaxi startups like WeRide, Pony AI and Avride.
Uber’s stock has soared roughly 42% this year, making it among the top 10 gainers in the benchmark S&P 500 index, while smaller rival Lyft is flat during the same period.
(Reporting by Akash Sriram in Bengaluru; Editing by Sriraj Kalluvila)
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