Uber posts first annual net profit since IPO on higher demand, user retention - Hindustan Times
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Uber posts first annual net profit since IPO on higher demand, user retention

Reuters | | Posted by Singh Rahul Sunilkumar
Feb 07, 2024 11:00 PM IST

Uber reports market-beating results for holiday quarter, forecasts strong Q1

Uber Technologies forecast quarterly core profit and gross bookings above estimates and reported market-beating results for the holiday quarter on Wednesday, fueled by higher demand in its ride sharing and food delivery businesses.

FILE PHOTO: A screen displays the company logo for Uber Technologies Inc. on the day of it's IPO at the New York Stock Exchange (NYSE) in New York, US.(REUTERS)
FILE PHOTO: A screen displays the company logo for Uber Technologies Inc. on the day of it's IPO at the New York Stock Exchange (NYSE) in New York, US.(REUTERS)

It posted its first annual net profit as a public company as user retention improved, also benefiting from initiatives like memberships, corporate travel and advertising.

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Shares, however, fell more than 1% as Uber deferred announcements related to capital allocation plans to its investor day on Feb. 14. CEO Dara Khosrowshahi had said in September Uber was considering buybacks and dividend.

"Uber's platform advantages and disciplined investment in new growth opportunities resulted in record engagement and accelerating Gross Bookings in Q4," Chief Financial Officer Prashanth Mahendra-Rajah said.

The company expects adjusted earnings before interest, taxes, depreciation, and amortization of $1.26 billion to $1.34 billion in the quarter ending March, compared with expectations of $1.26 billion, according to LSEG data.

Uber's gross bookings forecast of $37 billion to $38.5 billion came in higher than expectations of $37.33 billion.

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The outlook follows strong results in the seasonally strong October-December period. Revenue jumped 15% to $9.9 billion and gross bookings rose 22% to $37.6 billion, exceeding Wall Street targets.

Its net profit nearly tripled to $1.43 billion in the fourth quarter, thanks to a $1 billion net pre-tax benefit from re-evaluation of the company's equity investments.

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Uber said revenue from its core ride-share business grew 34%, driven in part from "outsized trip growth" in Latin America and Asia Pacific markets.

Delivery business revenue grew 6%, while gross bookings growth for the segment was the highest in two years.

"Management took the intrigue off the table for today in saying it will address capital return more formally at the investor day, said RBC Capital Markets analyst Brad Erickson, adding that those plans are top of investors' priority.

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