(SOURCE-BNN-Breaking)
Uber announced its fourth-quarter results on Wednesday, surpassing analysts’ estimates on both the top and bottom lines. The company reported a revenue of $9.94 billion for the quarter, representing a notable 15% increase compared to the same period last year. CEO Dara Khosrowshahi attributed this success to what he described as a year of “sustainable, profitable growth for Uber,” emphasizing the ongoing shift in consumer spending from retail to services.
Impressive Financial Results Propel Uber’s Stock Amidst Market Uncertainty
Shares of Uber closed relatively unchanged on Wednesday following the release of the quarterly results. Here’s a breakdown of how the company performed:
- Earnings per share: Uber reported earnings of 66 cents per share, surpassing the 17 cents per share expected by LSEG, formerly known as Refinitiv.
- Revenue: The company’s revenue of $9.94 billion exceeded the $9.76 billion expected by LSEG.
- Net Income: Uber reported a net income of $1.4 billion, or 66 cents per share, compared to $595 million, or 29 cents per share, in the same quarter last year. The net income included a $1 billion net tailwind attributed to “unrealized gains” from revaluations of its equity investments.
Uber’s strong financial performance was further underscored by its gross bookings, which totaled $37.6 billion, marking a significant 22% increase year over year. The company’s adjusted EBITDA also saw substantial growth, reaching $1.28 billion, up 93% compared to the previous year.
Growth Outlook and Business Segment Performance
Looking ahead, Uber provided optimistic guidance for the first quarter of 2024. The company expects to report gross bookings between $37 billion and $38.5 billion, along with adjusted EBITDA ranging from $1.26 billion to $1.34 billion. Additionally, Uber’s monthly active platform consumers reached 150 million in the fourth quarter, representing a 15% increase year over year.
Uber’s largest business segments, mobility, and delivery, demonstrated robust performance during the quarter. Mobility gross bookings totaled $19.3 billion, up 29% year over year, while delivery gross bookings amounted to $17.0 billion, a 19% increase compared to the previous year. The mobility segment reported revenue of $5.5 billion, up 34% from the previous year, while the delivery segment reported $3.1 billion in revenue, up 6% year over year.
However, Uber’s freight business faced challenges, with sales declining by 17% year over year to $1.28 billion. Khosrowshahi acknowledged the ongoing difficulties in the freight business, citing changing consumer spending patterns following the pandemic. Despite some positive indicators in spot freight rates, Khosrowshahi cautioned against assuming a sustained trend, highlighting the need for continued vigilance and adaptation in the face of evolving market dynamics.
