Uber Technologies (UBER -1.15%) received mixed reactions after reporting earnings on May 8. While the ride-hailing platform grew sales and monthly active users by 21% and 15%, respectively, the market fretted over the company's net loss stemming from valuation changes in investments it holds.

Still, Needham analyst Bernie McTernan set a price target of $90 for Uber over the next year, citing the company's 82% adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) growth as a critical reason for optimism.

Here's why I can't help but agree with McTernan's belief that Uber's operations are streamlining despite this one-off loss in net income this quarter.

Pairing impressive cash generation with growth

Generating over $875 million in free cash flow (FCF) -- even after removing stock-based compensation -- Uber boosted its FCF margin to 9%. This robust result paints a far different picture of the company's well-being than the net loss that is garnering headlines.

Its booming membership program, Uber One, powers this cash-generating charge. Now 19 million members strong, Uber One creates over $1 billion annually in FCF through subscription fees. Members receive waived delivery fees, lowered service fees, and a 5% credit on rides, and have proven to be very valuable for Uber, accounting for 32% of bookings in the first quarter.

However, despite showing signs of becoming a genuine cash cow as its two-sided network expands, Uber's growth story is far from over. Through its partnership with Maplebear, Instacart's parent company, Uber is moving full speed ahead in its efforts to build out its grocery delivery business.

While the deal has sparked rumors of a potential acquisition, Uber may be more interested in the cross-promotion potential of Instacart's 14 million members. By providing Instacart+ members with free delivery on Uber Eats orders over $35, the company hopes to continue converting delivery consumers into new mobility riders and vice versa.

Trading at a reasonable 34 times FCF, guiding for roughly 20% sales growth in the second quarter, and armed with the potential development of the Instacart partnership, Uber remains one of my favorite growth stocks.