Uber beat estimates and improved its net losses in its first quarter but missed on revenue, with shares gaining in extended trading before dropping more than 4.5%, Yahoo! Finance reported Thursday.
Uber reported nearly $3 billion in sales for the three-month period, sharply below the $3.29 billion investors had predicted.
Uber reported gross bookings of $19.55 billion against analysts' estimates of $18.07 billion. For its ride gross bookings, the company posted $6.8 billion compared to $6.6 billion expected.
For its Delivery gross bookings, Uber made $12.5 billion versus nearly $10.8 billion analysts' estimate. Losses per share was reported at $0.06 versus estimates of $0.37, according to Investopedia.
Ride-hailing companies are starting to bounce back from their pandemic lows as COVID-19 vaccines are distributed across the U.S. and restrictions are loosened.
Overall, Uber posted a net loss of $108 million, a major improvement from a $968 million loss in its fourth quarter last year. But that was largely the result of a $1.6 billion profit from the sale of its self-driving unit, ATG, according to CNBC.
Over the past year, shares of the company have generated a total return of 83%, well above the S&P 500's total return of 45.3%.
"For the remainder of the year, I would remind you that delivery gross bookings year-over-year comparisons will become tougher as we continue to face significant forecasting uncertainty in predicting post-reopening consumer behavior," CNBC quoted Uber chief financial officer Nelson Chai as saying on a call with investors.
Uber's earnings announcement follows the Department of Labor's ruling to rescind a Trump-era policy that would have made it easier for companies to categorize workers as "independent contractors" rather than full-time employees.
"Uber is starting to fire on all cylinders, as more consumers are riding with us again while continuing to use our expanding delivery offerings," Uber chief executive Dara Khosrowshahi said in remarks quoted by Yahoo! Finance.
