Uber shares fell more than 7% after the company’s fourth-quarter earnings report showed strong revenue growth but missed earnings per share (EPS) expectations and offered soft guidance for the first quarter.
For the quarter, Uber reported $11.96 billion in revenue, surpassing Wall Street estimates of $11.77 billion, marking a 20% year-over-year increase. Net income reached $6.9 billion ($3.21 per share), significantly higher than the $1.4 billion (66 cents per share) reported last year. However, the results included a $6.4 billion tax valuation benefit and a $556 million gain from equity investments, which affected adjusted EPS calculations.
Gross bookings for the quarter totaled $44.2 billion, exceeding expectations of $43.49 billion, while adjusted EBITDA rose 44% to $1.84 billion, in line with analyst forecasts. Looking ahead, Uber expects Q1 gross bookings between $42 billion and $43.5 billion, slightly below estimates of $43.51 billion. The company also projects adjusted EBITDA between $1.79 billion and $1.89 billion, compared to analysts’ expected $1.85 billion.
CEO Dara Khosrowshahi attributed Uber’s performance to rapid innovation and expansion, particularly in autonomous vehicle technology. The company announced the public launch of robotaxi rides in Austin, Texas, through its partnership with Waymo. Users can now join an “interest list” in the Uber app to increase their chances of being matched with a Waymo vehicle.
While Khosrowshahi sees autonomous vehicles as a trillion-dollar opportunity, he acknowledged that widespread commercialization remains years away due to regulatory challenges and infrastructure development. Despite aggressive investments in the sector, he emphasized that AV technology will not significantly impact Uber’s near-term outlook.
In Q4, Uber completed 3.1 billion trips, an 18% increase year over year, with monthly active platform users reaching 171 million, up 14% from 150 million last year.
Key segment performance:
- Mobility gross bookings: $22.8 billion (+18%)
- Delivery gross bookings: $20.1 billion (+18%)
- Freight revenue: $1.28 billion (flat year over year)
Uber’s mobility segment generated $6.91 billion in revenue, exceeding analyst expectations of $6.77 billion, while delivery revenue rose 21% to $3.77 billion, surpassing forecasts of $3.66 billion. Freight revenue remained stagnant at $1.28 billion, reflecting ongoing challenges in the sector as consumers continue shifting toward services over goods post-pandemic.
Despite solid revenue growth, the stock decline highlights investor concerns over profitability, future earnings, and the long-term roadmap for autonomous technology.
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