Uber Forecasts Strong Performance Amidst Resurgent Ride Share 

Uber Stock

Uber Technologies (NYSE:UBER) anticipates quarterly core profit and gross bookings exceeding estimates, buoyed by heightened demand in its ride-sharing and food delivery sectors, as revealed in its holiday quarter results on Wednesday.

Benefiting from increased user retention and initiatives such as memberships, corporate travel, and advertising, Uber achieved its first annual net profit since going public.

CEO Dara Khosrowshahi’s previous mention in September of potential buybacks and dividends has sparked anticipation, with Uber slated to discuss capital allocation plans at its investor day on Feb. 14, fueling a nearly 2% rise in its shares.

“Uber’s platform advantages and disciplined investment in new growth opportunities resulted in record engagement and accelerating Gross Bookings in Q4,” highlighted Chief Financial Officer Prashanth Mahendra-Rajah.

For the quarter ending March, Uber forecasts adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) between $1.26 billion and $1.34 billion, aligning with expectations. Additionally, its gross bookings projection of $37 billion to $38.5 billion exceeds forecasts.

These forecasts follow robust results in the typically strong October-December period. Revenue surged 15% to $9.9 billion, while gross bookings soared 22% to $37.6 billion, surpassing Wall Street’s projections.

The fourth-quarter net profit nearly tripled to $1.43 billion, fueled by a $1 billion net pre-tax benefit from the re-evaluation of the company’s equity investments, contributing to a net profit of $1.89 billion for fiscal 2023.

Uber reported a 34% growth in revenue from its core ride-sharing business, driven partially by remarkable trip growth in Latin America and the Asia Pacific. Meanwhile, its delivery business revenue grew by 6%, marking the segment’s highest gross bookings growth in two years.

RBC Capital Markets analyst Brad Erickson noted that Uber’s forthcoming capital return plans, to be addressed formally at the investor day, are a key focus for investors, eliminating some uncertainty from the equation.

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