Uber (UBER) will announce its first-quarter earnings on May 7. While the broader market has struggled following President Donald Trump’s announcement of reciprocal tariff plans on “Liberation Day” on April 2, Uber stock has jumped 33% in just one month. The company’s upward trajectory can be attributed to significant developments in its autonomous driving initiatives, including key partnerships with Volkswagen Group of America’s autonomous mobility subsidiary and other strategic alliances aimed at integrating autonomous vehicles into the Uber platform.

While Uber stock has gained momentum ahead of Q1 earnings, let’s examine management’s guidance and the Street’s forecast for the quarter.

Uber’s Q1 Outlook: Building on Strong Momentum

Uber closed 2024 on a high note, with strong performance across several key metrics, including monthly active platform consumers (MAPCs), total trips, and gross bookings. The solid finish sets the tone for an encouraging start to 2025. Despite broader macroeconomic uncertainties, Uber’s core businesses, including mobility and delivery, appear well-positioned to maintain momentum into the first quarter.

For Q1 2025, Uber anticipates gross bookings growth of 17% to 21% year-over-year on a constant-currency basis, translating to a range of $42 billion to $43.5 billion. Management expects mobility to drive its financials, with delivery maintaining steady performance.

Uber’s Q1 growth will likely be driven by the continued increase in trip volumes and a stable supply of drivers supported by sustained demand. Moreover, Uber’s expanding use cases for mobility are also helping the platform attract both new and existing users.

The company is intensifying its focus on demand generation through innovation and market expansion. For instance, its recent launch of Uber Business Black, a premium offering, has seen solid adoption. Further, the company is targeting corporate clients with its Uber for Business offering, which helps companies manage employee travel and commutes. The service is gaining traction, with gross bookings for this segment surging roughly 50% in Q4 2024, signaling long-term growth potential.

Uber is also focusing on improving affordability through new products and membership. While the offering will support its growth, economic softness could still pose challenges.

Besides Mobility, Uber’s delivery business could grow strongly in Q1, reflecting higher membership adoption and expanding grocery and retail products. Notably, delivery MAPCs have marked accelerated growth in the last seven quarters. This could sustain in Q1 due to Uber’s focus on improving affordability, expanding into underserved areas, and widening its product selection.

Subscriptions remain a powerful growth driver and will add stability to Uber’s business. Uber One, the company’s membership program, has surpassed 30 million members, up 60% year-over-year. These members consistently spend more across the platform, boosting mobility and delivery gross bookings and driving recurring revenue.

Adding to the diversification of its income streams, Uber’s ad revenues remain strong. In 2024, the delivery revenues benefitted from a $461 million growth in advertising revenue. As Uber enhances its ad offerings and draws more advertisers, this high-margin business is expected to further strengthen the company’s financial foundation.

Overall, Uber’s multi-pronged growth strategy could drive its top line in Q1, positioning the company for another solid quarter ahead. Moreover, Analysts expect Uber to post Q1 earnings of $0.51 per share compared to a loss in the prior-year quarter.

Wall Street Is Bullish on Uber Stock Ahead of Q1

Uber’s Q1 will likely remain solid. With strong momentum across its core business segments and diverse revenue streams, the company is positioned for continued growth. Moreover, the company’s long-term prospects remain strong considering its recent partnership in the autonomous vehicle (AV) space.

With a massive user base of 171 million MAPCs, Uber could evolve as a significant demand aggregator for AV manufacturers and benefit from the rise in demand.

As the company heads into its Q1 earnings report, confidence is high among Wall Street analysts. Uber stock carries a “Strong Buy” consensus rating, reflecting an optimistic outlook on its growth trajectory.