The value of Uber Technologies Inc.’s stock jumped more than 11% today after the company posted first-quarter results that topped analyst expectations.

Uber generated revenues of $8.82 billion during the three months ended March 31. That’s 29% higher than the company’s year-ago sales and slightly above the Refinitiv consensus analyst estimate, which projected $8.72 billion.

“We significantly accelerated Q1 trip growth to 24% from 19% last quarter, with mobility trip growth of 32%, as a result of improved earner and consumer engagement,” said Uber Chief Executive Officer Dara Khosrowshahi. “Looking ahead, we are focused on extending our product, scale and platform advantages to sustain market-leading top and bottom-line growth beyond 2023.”

Uber’s mobility business was its primary driver of revenue growth in the first quarter. The business’ sales reached $4.3 billion after growing 72% year-over-year. It credited the increase primarily to a $1.1 billion benefit gained through changes to its accounting practices in the U.K.

Uber’s mobility business also benefited from increased consumer demand. The business’ gross bookings, a metric that measures user spending on ride-hailing trips and related transportation services, reached $15 billion in the first quarter. The sum represents a 40% year-over-year growth rate.

Users took a total of 2.1 billion trips in the first quarter, or 24% more than a year earlier. That number includes not only ride-hailing trips but also food deliveries. 

Like its mobility business, Uber’s food delivery unit logged a double-digit revenue increase during the first quarter. However, the latter unit grew at a slower pace. The food delivery revenue climbed 23% year-over-year, to $3.1 billion, while gross bookings reached $15 billion in what amounts to an 8% increase.

Uber’s third major source of revenue is its freight business. The business provides software that companies such as retailers use to manage their supply chains. Its revenue declined 23% from the first quarter of 2021, to $1.4 billion, in a decline that it attributed to a “challenging freight market cycle.”

Across its business units, Uber incurred a $157 million net loss during the quarter. That translated into an adjusted loss of $0.08 per share, slightly less than the $0.09 projected by the Refinitiv consensus estimate. 

One reason Uber edged closer to profitability in the first quarter is that its mobility and delivery units improved their adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization. Both units achieved record adjusted EBITDA margins. Their bottom line improvements offset a decline in the profitability of its freight business.

The company expects to generate adjusted EBITDA of $800 million to $850 million in the current quarter. Uber is also projecting gross bookings of between $33 billion and $34 billion.

Image: Uber