Uber Shocks Investors with Record Breaking Earnings

Uber Technologies Inc. reported fourth-quarter earnings on Wednesday, January 18th, 2023, and the results surpassed expectations. The company's stock rose by 2.5% following the announcement.

The report showed strong growth in all of Uber's major business segments and a substantial increase in revenue compared to the previous year.

Revenue for the quarter was $8.6 billion, up 49% year-over-year, and beating the expected $8.49 billion estimate by analysts. The company's net income was $595 million, of which $756 million was due to unrealized gains on equity investments.

Uber's CEO, Dara Khosrowshahi, called the fourth quarter the company's "strongest quarter ever," and stated that the impact of the pandemic on Uber's mobility business was "now well and truly behind us."

The Q4 Report in Numbers

In the fourth quarter, gross bookings for the company's Mobility segment reached $14.9 billion, surpassing the expected $14.8 billion estimate. Meanwhile, the Delivery segment reported $14.3 billion in gross bookings, meeting expectations. The company's freight business also recorded $1.5 billion in sales for the quarter.

In terms of active users, Uber saw an 11% year-over-year increase, with 131 million monthly active platform consumers in the fourth quarter. The number of trips completed on the platform was 2.1 billion, a 19% increase from the previous year.

CEO Khosrowshahi mentioned that the company is not experiencing any signs of consumer spend weakness. He attributed this to a shift from retail to services spending following the pandemic. However, he also noted that around 70% of drivers say that inflation is a factor in their decision to work for Uber.

For the first quarter of 2023, Uber expects gross bookings to grow between 20% and 24% year-over-year on a constant currency basis. The company also projects an adjusted EBITDA of $660 million to $700 million.

Uber's fourth-quarter earnings exceeded expectations and showed strong growth across all of its major business segments. The company's mobility segment, in particular, had a standout quarter and outperformed its delivery segment.

Despite concerns about consumer spending, CEO Khosrowshahi stated that the company has not seen any signs of weakness. As the pandemic continues to ease, Uber's future looks bright, and the company is poised for continued growth in the coming months.