Uber (UBER.N) reported a surprise quarterly loss and forecasted gross bookings below Wall Street expectations, causing its shares to drop 9% and potentially shedding over $10 billion in market value. The company’s disappointing forecast contrasted with Lyft’s (LYFT.O) upbeat guidance, which led to an 8% increase in its shares. Uber’s results indicated slower growth from 2023, in which it posted its first annual profit by dominating the U.S. ride-share and delivery markets.
The ride-share giant missed expectations for first-quarter gross bookings, a crucial metric showing the total dollar value of transactions on the platform. CFO Prashanth Mahendra-Rajah attributed the softer ride-share demand to Latin America and the impact of certain holidays shifting into the first quarter. Uber operates in roughly 70 countries and reported a net loss of $654 million due to legal charges, provisions, and fair valuation adjustments. For the second quarter, Uber expects gross bookings to range between $38.75 billion and $40.25 billion, below estimates of $40.04 billion.