Uber Reports Strong Q4 Earnings, Beats Estimates as Revenue and Bookings Rise

Ride-hailing giant Uber Technologies reported impressive fourth-quarter earnings that outperformed analyst estimates. The company’s revenue and gross bookings also exceeded expectations, driven by improvements in driver supply. Nonetheless, Uber’s stock experienced a slight decline following the announcement, potentially due to high market expectations.

For the quarter ending December 31, Uber’s adjusted earnings per share (EPS) stood at 66 cents, representing a remarkable 127% increase compared to the same period last year. The company attributed this growth partly to investment gains. Analysts had anticipated an adjusted EPS of only 16 cents.

Additionally, Uber’s revenue increased by 15% to $9.9 billion, surpassing estimates of $9.76 billion. The gross bookings, which reflect the total dollar value of fares charged to riders for transportation and other services, grew by 22% to $37.6 billion, slightly exceeding estimates of $37.12 billion.

According to William Blair analyst Ralph Schackart, both monthly active platform consumers (MAPCs) and monthly trips per MAPC reached all-time highs during the quarter. Trip growth of 24% outpaced the growth in gross bookings.

The company also reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $1.3 billion, slightly above analysts’ expectations of $1.26 billion.

Looking ahead, Uber projects gross bookings for the first quarter of 2024 to be in the range of $37 billion to $38.5 billion, with an expected EBITDA of $1.30 billion at the midpoint of guidance.