Uber reported its earnings for Q4 on Wednesday having beaten the analysts’ estimates on the top and bottom lines. Uber shares closed mostly flat on Wednesday. Like its final year as a private company, the last time Uber turned a profit, it got a huge tailwind from investments that helped fuel profits, $1 billion in 2023.
Uber posted its first full-year profit since going public in 2019 and its stock hit an all-time high on Wednesday as strong bookings in the Q4 of the year pushed profit and revenue beyond Wall Street expectations. Uber has started making money from operations.
Uber earnings Q4
Here’s how Uber did in Q4:
Uber earnings per share: 66 cents vs. 17 cents expected by LSEG, formerly known as Refinitiv.
Uber revenue: $9.94 billion vs. $9.76 billion expected by LSEG.
Uber net income: $1.4 billion, or 66 cents per share, compared with $595 million, or 29 cents per share, in the same quarter last year. Uber’s net income includes a $1 billion net tail wind thanks to “unrealized gains” from revaluations of its equity investments, according to a release.
Uber’s revenue growth for the quarter was up 15% from the same quarter last year. Uber’s gross bookings came in at $37.6 billion, up 22% year over year.
2023 a profitable year for Uber
CEO Dara Khosrowshahi said 2023 marked a year of “sustainable, profitable growth for Uber,” according to a prepared statement. He said the continued shift in consumer spending from retail to services has been a boon for the company.
“We continue to see consumer strength, and especially consumer strength as it relates to services,” Khosrowshahi said. “People are going out to dinner, they’re going out to concerts, sports events, etc. And when people go out and they spend money, or when they want anything delivered to their home, Uber benefits.”
Uber’s adjusted earnings
Uber reported adjusted EBITDA of $1.28 billion, up 93% year over year, which is slightly above the $1.23 billion expected by analysts polled by StreetAccount. Uber’s adjusted EBITDA also came in above the company’s guidance of $1.18 billion to $1.24 billion.
For the first quarter of 2024, Uber said it expects to report gross bookings between $37 billion and $38.5 billion, compared with StreetAccount estimates of $37.43 billion. Uber anticipates adjusted EBITDA of $1.26 billion to $1.34 billion, compared with the $1.26 billion expected by analysts.
Increased customer base
The number of Uber’s monthly active platform consumers reached 150 million in its fourth quarter, up 15% year over year from 131 million. There were 2.6 billion trips completed on the platform during the period, up 24% year over year.
Uber’s segment earning
Here’s how Uber’s largest business segments performed:
Mobility (gross bookings): $19.3 billion, up 29% year over year. Uber’s mobility segment reported $5.5 billion in revenue, up 34% from the year earlier
Delivery (gross bookings): $17.0 billion, up 19% year over year. Its delivery segment reported $3.1 billion, up 6% from the year prior.
Freight (gross bookings): $1.28 billion in sales for the quarter, a 17% decline year over year. Freight continues to be a sticking point for Uber since consumers are spending more on services than on shipping goods following the pandemic. Last quarter, Uber’s freight business also reported $1.28 billion in revenue, which marked a 27% decline year over year.
“We are seeing some glimmers of light in terms of spot freight rates, but it’s far too soon to assume the glimmer will turn into a trend,” Khosrowshahi said in his prepared remarks.
Uber stock update
Shares, however, fell more than 1% as Uber deferred announcements related to capital allocation plans to its investor day on Feb. 14.
