Technology
Wednesday, February 7th, 2024 3:44 pm EDT
Key Points
- Uber exceeded analysts’ expectations in both earnings per share and revenue for the fourth quarter, with earnings per share at 66 cents compared to an expected 17 cents and revenue of $9.94 billion compared to an expected $9.76 billion.
- Despite the positive financial results, Uber’s shares fell by more than 2% on the morning following the earnings report.
- CEO Dara Khosrowshahi emphasized the company’s sustainable, profitable growth in 2023, driven by a shift in consumer spending towards services, which benefited Uber’s business model.
Uber reported fourth-quarter results that surpassed analysts’ expectations both in terms of revenue and earnings per share. Despite this positive performance, Uber’s shares declined by over 2% on Wednesday morning. The company’s earnings per share stood at 66 cents, significantly higher than the 17 cents anticipated by LSEG. Similarly, Uber’s revenue of $9.94 billion exceeded the expected $9.76 billion. The notable increase in net income was largely attributed to a $1 billion net gain resulting from the revaluation of equity investments. The company’s revenue for the quarter experienced a 15% growth compared to the same period last year, with gross bookings reaching $37.6 billion, marking a 22% increase year over year. CEO Dara Khosrowshahi attributed Uber’s success to a shift in consumer spending towards services, emphasizing increased spending on dining out, entertainment, and home deliveries. Uber’s adjusted EBITDA reached $1.28 billion, surpassing both analyst expectations and the company’s own guidance. Looking ahead to the first quarter of 2024, Uber anticipates gross bookings between $37 billion and $38.5 billion, with adjusted EBITDA expected to range between $1.26 billion and $1.34 billion. The company experienced growth in its monthly active platform consumers, reaching 150 million in the fourth quarter, with 2.6 billion trips completed during the period. Uber’s largest business segments, Mobility and Delivery, saw significant growth, with gross bookings of $19.3 billion and $17.0 billion, respectively. However, Uber’s freight business faced challenges, with a 17% decline in sales compared to the previous year, attributed to shifting consumer preferences towards services over goods shipping. Despite some optimistic signs in spot freight rates, Khosrowshahi remained cautious about the business segment’s future prospects. Uber’s quarterly call with investors was scheduled for 8 a.m. ET, where further insights into the company’s performance and future strategies were expected to be discussed.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/02/07/uber-earnings-q4-2023-.html
