Uber Technologies (UBER.N) has projected quarterly core profit and gross bookings above estimates, unveiling market-beating results for the holiday quarter driven by robust demand in its ride-sharing and food delivery businesses. The company, which marked its first full-year profit on a net basis, is witnessing a surge in initiatives such as memberships, corporate travel, and advertising, complemented by a rebound in travel as people increasingly return to offices and resume regular activities post-COVID.
Following a decline during the pandemic years, travel demand rebounded last year as individuals ventured out more frequently, and many organizations resumed in-office work arrangements. Despite previously hinting at potential buybacks and dividends in September, Uber refrained from announcing a concrete plan in its latest earnings statement, leading to a 3% drop in premarket trading for the company’s shares.
Uber’s Chief Financial Officer, Prashanth Mahendra-Rajah, highlighted the company’s platform advantages and strategic investments in new growth opportunities, which have resulted in record engagement and accelerated Gross Bookings in Q4. The company anticipates adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $1.26 billion to $1.34 billion for the quarter ending March, surpassing market expectations.
Moreover, Uber’s gross bookings forecast for the same period ranges between $37 billion to $38.5 billion, exceeding analyst predictions. These optimistic projections follow robust performance in the October-December period, where revenue surged by 15% to $9.9 billion, and gross bookings witnessed a 22% increase to $37.6 billion, outperforming Wall Street targets.
Uber’s net profit nearly tripled to $1.43 billion, largely attributable to a $1 billion net pre-tax benefit stemming from the re-evaluation of the company’s equity investments. Revenue from its core ride-share business soared by 34%, driven partly by remarkable trip growth in Latin America and the Asia Pacific markets. Meanwhile, the delivery business saw a 6% revenue increase, with gross bookings growth for this segment hitting a two-year high.
Chief Executive Officer Dara Khosrowshahi emphasized that a growing portion of Uber’s Delivery Gross Bookings growth stems from increased trip and audience growth, rather than pricing adjustments, indicating a favorable shift in business dynamics.
In summary, Uber’s strong performance in the holiday quarter underscores the resilience and adaptability of its business model amidst evolving market conditions. With a favorable outlook for the coming months and continued investments in growth initiatives, Uber remains well-positioned to capitalize on the accelerating demand for ride-sharing and food delivery services globally.
Here are some links for our readers with valuable perspectives from reputable sources that support and expand on the ideas discussed in this article. Explore and enrich yourself.
“Uber Investor Relations” – This link directs users to Uber’s official investor relations page where they can find detailed financial reports and updates about the company’s performance. Link: Uber Investor Relations
“MarketWatch: Latest News on Uber Technologies Inc.” – MarketWatch offers comprehensive coverage of Uber’s financial news and market updates, providing readers with insights into the company’s performance and industry trends. Link: MarketWatch: Latest News on Uber Technologies Inc.
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