UBER's March Gross Bookings Hit a Record, Shares Gain Over 3%

Zacks Equity Research
·3 min read

Uber Technologies, Inc. UBER provided an upbeat update for its performance in March, following which shares of the company gained 3.1% at the close of business on Apr 12.

In a SEC filing dated Apr 12, the company revealed that its March gross bookings “reached the highest monthly level” in its nearly 12-year history owing to strong performances at the Mobility and Delivery businesses.

The Mobility business, which saw significantly low ride volumes in 2020 due to coronavirus-led restrictions confining people to their homes, recorded its best performance last month since March 2020. The unit crossed $30 billion in annualized gross bookings run-rate in March and its average daily gross bookings increased 9% month over month. Meanwhile, the Delivery business hit an all-time record, crossing $52 billion in annualized gross bookings run-rate in March, indicating a surge of more than 150% year over year. Notably, the Delivery unit has been thriving since last year owing to increased order volumes from homebound customers.

Uber Technologies, Inc. Price

Uber Technologies, Inc. Price
Uber Technologies, Inc. Price

Uber Technologies, Inc. price | Uber Technologies, Inc. Quote


With increased vaccinations in the United States, Uber is seeing consumer demand for Mobility recover faster than driver availability. On the other hand, “demand for Delivery continues to exceed courier availability”, the company said. Amid the positive developments, the company remains confident of being able to achieve adjusted EBITDA profit in 2021.

On a separate note, Uber expects to record significant accruals in its first-quarter 2021 results related to historical claims settlement for its U.K. drivers following their reclassification to workers. Majority of the accruals are expected to be reflected in the form of reduced total company and Mobility revenues and revenue take rates, and will not affect adjusted EBITDA results, the company stated.

Zacks Rank & Key Picks

Uber carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Internet - Services space are Etsy, Inc. ETSY, Internet Initiative Japan, Inc. IIJIY and Sohu.com Inc. SOHU, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Etsy, Internet Initiative Japan and Sohu.com have rallied more than 200%, 40% and 100% in a year’s time, respectively.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Sohu.com Inc. (SOHU) : Free Stock Analysis Report

Etsy, Inc. (ETSY) : Free Stock Analysis Report

Internet Initiative Japan, Inc. (IIJIY) : Free Stock Analysis Report

To read this article on Zacks.com click here.