Uber beats estimates as revenue and bookings see double-digit growth

Uber reported fourth-quarter results Wednesday that beat analysts’ estimates on top and bottom lines.

Shares fell about 3% in premarket trading.

Here’s how the company did:

• Earnings per share: 66 cents vs. 17 cents expected by LSEG, formerly known as Refinitiv.
• Revenue: $9.94 billion vs. $9.76 billion expected by LSEG.

Uber reported net income of $1.4 billion, or 66 cents per share, compared with a net income of $595 million, or 29 cents per share, in the same quarter last year. Uber’s net income includes a $1 billion net tailwind thanks to “unrealized gains” from revaluations of its equity investments, according to a release.

The company’s revenue 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.

In a prepared statement, CEO Dara Khosrowshahi said 2023 marked a year of “sustainable, profitable growth for Uber” as consumer spending continues to shift from retail to services.

“I’m energized by the pace of innovation and the momentum I’m seeing across the company,” he wrote.

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 an adjusted EBITDA of $1.26 billion to $1.34 billion, compared to the $1.26 billion expected by analysts.

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.

Here’s how Uber’s largest business segments performed:

Mobility (gross bookings): $19.3 billion, up 29% year over year

Delivery (gross bookings): $17.0 billion, up 19% year over year

Uber’s mobility segment reported $5.5 billion in revenue, up 34% from the year earlier, while its delivery segment reported $3.1 billion, up 6% from the year prior. 

The company’s freight business booked $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 will host its quarterly call with investors at 8 a.m. ET.