JPMorgan analyst Doug Anmuth reiterated an Overweight rating on Uber Technologies, Inc.
The company beat the high end of the EBITDA guide for the eleventh straight quarter, Anmuth writes, with the metric being 3% ahead of the top end of the $1.26 billion-$1.34 billion guidance.
Following the quarterly results, the analyst writes Uber can continue to grow the Delivery category profitably as it looks to improve network efficiencies, scale advertising, and strengthen marketing and incentive optimization.
Uber continues to drive cross-selling from Delivery to Grocery & Retail. Some 15% of Delivery users now order from Grocery & Retail, the analyst notes.
According to the analyst, divestiture of certain Careem's non-ridesharing business (recorded in the Mobility segment) also impacted Mobility GB growth by $150 million, or ~100bps year over year.
In the first quarter, UberX Share grew 6x year over year, as Uber continues to optimize the product, the analyst adds.
The company's solid FXN growth encourages Anmuth. Strong mobility profitability, acceleration in delivery, and increased focus on profits and FCF are evident in the numbers.
The analyst highlighted that Uber reached a milestone on the supply side. Over one million merchants are now on the platform.
However, the company's shares slumped following the results. The analyst views that the initial sell-off on results is overdone.
Price Action: UBER shares are trading lower by 9.01% to $64.03 at last check Wednesday.
