Uber Technologies (UBER) shares dropped 7% Wednesday after the ridesharing giant’s current-quarter gross bookings outlook came in mostly below analysts’ estimates.
Uber registered net income of $6.88 billion, or $3.21 per share, on revenue of $11.96 billion. Analysts had expected profit of $1.04 billion, or $0.48 per share, on revenue of $11.76 billion, according to Visible Alpha. Its profits were boosted by more than $6 billion from a “benefit from a tax valuation release,” and another $556 million from a revaluation of the company’s investments.
Uber’s operating income of $770 million widely missed estimates of $1.21 billion. Its adjusted EBITDA of $1.84 billion came in a tick below expectations.
The firm reported gross bookings of $44.2 billion and 3.07 billion trips, up 18% and above expectation. For the current quarter, Uber projects gross bookings from $42 billion to $43.5 billion, mostly below the $43.48 billion consensus, as it expects a 5.5% currency headwind.
With today’s declines, Uber shares fell into negative territory for the last 12 months.
UPDATE—This article has been updated with the latest share price information.
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