• Uber's revenue increased by 15% in the first quarter of 2024 compared to the same period last year.
• The company reported a substantial net loss of $654 million.
• Following the release of these financial results, Uber’s stock price dropped by 8%, reducing its year-to-date gains.

For Q1 of 2024, Uber Technologies Inc (NYSE:UBER) revealed that the company performed better than expected in terms of revenue, seeing a 15% growth compared to last year, but its operating profit didn't hit its target.

Analysts were looking for an operating profit of $600 million, but Uber only made $172 million. This miss showed up in Uber's earnings per share, too, coming in at -$0.32 when analysts expected $0.23.

They also reported a significant net loss of $654 million, much worse than the $157 million loss from the same period last year.

On top of financial challenges, Uber is navigating regulatory hurdles in many parts of the world. Issues such as driver and delivery worker pay are important because they affect Uber's expenses and raise broader questions about the gig economy and workers' rights.

Despite these hurdles, Uber is still growing where it counts, as more people are using Uber. Monthly users reached 149 million, a 15% jump from last year, and the platform managed 2.6 billion trips in the quarter.

Looking forward, Uber expects to book between $38.75 billion and $40.25 billion in the next quarter, suggesting the company is optimistic about handling its current challenges.

The financial results caused an 8% drop in its share price right after the news came out, reducing its year-to-date gains to just 4%. In March, Uber's shares had soared to a 33% gain for the year.

The stock is now hovering around $64, an important level because it was both a high point in February 2021 and the highest peak for 2023. This level is important. If it remains stable, it can serve as a solid base for growth. However, if it drops, Uber might face more declines.

After the closing bell on Tuesday, May 7, the stock closed at $70.43, trading down by 1.51%.

This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.