Uber: the strongest quarterly results
Uber's share price has fallen by 25% from its 2021 highs amid a correction in the technology sector and a flow of capital to firms that should be the beneficiaries of the” opening up " of the economy. However, investors in vain put an end to the future of the company. Uber's core business (taxi) is actively recovering to pre-coronavirus levels, while UberEats continues to show excellent results.
The total addressable market exceeds $13.8 trillion: $5 trillion each for the destinations listed above, and another $3.8 trillion for the Uber Freight segment, which has huge potential for growth. In every market where the company is represented, Uber occupies a leading position. Moreover, management is not afraid to close inefficient divisions in countries with too high competition.
According to a recent report, the number of taxi calls decreased by 38% y/y, which in monetary terms corresponded to $6.77 billion. However, these are the best results since the beginning of the pandemic in the second quarter of 2020: then this figure was 2 times less. An important point is that this direction has remained profitable for the last four quarters.
UberEats' revenue growth rate is increasing: in the first quarter of 2021, it grew by 215% y/y, while the amount of commissions (actual revenue from orders) increased by 50 basis points compared to the previous quarter and by 270 basis points y/y, to a record 14%.
As a result, we have excellent results from UberEats, which show no signs of slowing down, as well as the recovery of the passenger transport segment due to the improvement of the epidemiological situation. The recent price correction offers a good opportunity for investors who believe in future companies.