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

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

Shares of Uber fell more than 2% Wednesday morning.

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 $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.

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.

CEO Dara Khosrowshahi said 2023 marked a year of “sustainable, profitable growth for Uber,” according to a prepared statement. In an interview with CNBC’s “Squawk Box” on Wednesday, 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 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.

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.