Uber recently released its first-quarter financial results for 2024, with revenue slightly exceeding analysts’ estimates but showing an unexpected net loss. The company’s shares dropped over 6% in premarket trading following the announcement. Despite revenue reaching $10.13 billion, higher than the expected $10.11 billion, Uber recorded a net loss of $654 million, equating to a loss of 32 cents per share.

The ride-sharing giant reported a 15% increase in revenue compared to the previous year, amounting to $37.65 billion in gross bookings. However, this figure fell short of the anticipated $37.93 billion predicted by analysts. Uber attributed its widened net loss to a $721 million hit from unrealized losses related to equity investments’ revaluation.

CEO Dara Khosrowshahi clarified that the loss was unrelated to the business’s operational performance. He mentioned on a CNBC interview that the financial downturn was due to a one-time adjustment and not a reflection of ongoing business trends. The quarterly adjusted EBITDA of $1.38 billion exceeded expectations, signaling a positive sign despite the net loss.

Uber anticipates a strong second quarter, forecasting gross bookings between $38.75 billion and $40.25 billion. The company projects adjusted EBITDA in the range of $1.45 billion to $1.53 billion. This outlook falls slightly below StreetAccount estimates but demonstrates confidence in future growth potential.

During the first quarter, Uber’s monthly active platform users grew to 149 million, representing a 15% year-over-year increase. The platform facilitated 2.6 billion trips, a 21% rise from the previous year. Khosrowshahi noted the robust demand for Uber’s services, attributing it to enhanced user experience and the shift towards on-demand services.

Highlighting the performance of its key segments, Uber’s mobility gross bookings reached $18.67 billion, a 25% annual increase. The delivery segment also saw growth, with gross bookings amounting to $17.7 billion, marking an 18% year-over-year rise.

The mobility segment generated $5.63 billion in revenue, up 30% from the previous year, despite a marginal decline in revenue margin due to business model adjustments. In contrast, the delivery segment reported $3.21 billion in revenue, with a slight decrease in revenue margin due to business model changes in the first quarter.

Additionally, Uber’s freight business recorded $1.28 billion in sales for the quarter, showing stability despite year-over-year and quarter-over-quarter flat performance.

Uber is set to hold its quarterly call with investors at 8:00 a.m. ET to discuss these financial results and provide insights into the company’s strategy moving forward.