Uber Technologies Inc. reported revenue that beat analysts' estimates, suggesting rising inflation hasn't kept consumers from ordering more takeout or hailing a ride. The shares jumped about six per cent in premarket trading.
Revenue rose 49 per cent to US$8.6 billion in the fourth quarter, the San Francisco-based company said Wednesday in a statement. That beat the US$8.5 billion analysts had projected, according to data compiled by Bloomberg. Gross bookings, which encompass ride hailing, food delivery and freight, increased 19 per cent to US$30.7 billion, in line with estimates.
“We ended 2022 with our strongest quarter ever, with robust demand and record margins,” Chief Executive Officer Dara Khosrowshahi said in the statement.
Uber's report contrasts with much of the technology sector that's seen giants like Microsoft Corp. and Alphabet Inc. and gig-economy peers like DoorDash Inc. and Lyft Inc. lay off workers and scale back to adjust to a more uncertain economic outlook. Uber eliminated thousands of jobs in the early stages of the pandemic in 2020 but has said recently it has no plans for widespread job cuts.
Adjusted earnings before interest, tax, depreciation and amortization reached US$665 million, surpassing the average US$619.4 million analysts projected.
Uber's monthly active users grew 11 per cent to 131 million, slightly below what Wall Street was looking for. Still, total trips rose sharply as customers hailed rides more frequently. “The pandemic's impact on our Mobility business is now well and truly behind us,” Khosrowshahi said. Uber's ride-share bookings grew 31 per cent to US$14.9 billion, surpassing delivery segment bookings for the first time since the pandemic hit.
The company reported its ride-hailing driver base was at an “all-time high,” a sign that it's moving past a persistent shortage of drivers that resulted in higher fares and wait times for customers for much of last year. The price of an Uber ride was US$13.91, on average, 5 per cent lower than last year, while Lyft fares fell 1 per cent, according to data from Gordon Haskett Research Advisors, which surveys ride-share prices across 30 cities in the U.S.
Adjusted earnings within the ride-sharing unit jumped 76 per cent during the period compared with last year, partly driven by “a meaningful reduction” in driver bonuses.
Uber's food-delivery arm, Uber Eats, generated US$14.3 billion in gross bookings during the quarter, beating the US$14.2 billion analysts expected. The unit comprises 47 per cent of Uber's overall revenue and newer services like grocery, convenience and alcohol delivery could be a boost for future growth, according to D.A. Davidson analyst Tom White.
The company's logistics arm, Uber Freight, faces a more challenging outlook as a slowdown in the trucking industry hampers volumes. The division pairs trucking companies with those seeking to transport loads and operates as an independent unit. In January, Uber Freight said it would cut three per cent of its workforce.
Uber projected gross bookings of US$31 billion to US$32 billion in the first quarter and adjusted Ebitda of US$660 million to US$700 million.
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