Uber topped revenue expectations for the fourth quarter, but offered a cautious outlook for profitability in the current period, sending shares down approximately 4%. The ride-sharing giant reported $14.37 billion in revenue, narrowly beating the $14.32 billion consensus estimate. This marks a significant increase from the $12 billion reported in the same period last year.
The company’s core mobility segment, encompassing its ride-hailing services, saw revenue climb 19% year-over-year to $8.2 billion. The delivery business, which has expanded beyond restaurants to include groceries and retail items, demonstrated robust growth, with revenue jumping 30% to $4.9 billion. This expansion has been bolstered by strategic partnerships with platforms like OpenTable and Shopify, as well as collaborations with major retailers such as Loblaws in Canada, Biedronka in Poland, Seiyu in Japan, and Coles in Australia.
However, the company’s profit guidance for the upcoming quarter fell short of analyst expectations. This softer profit forecast, coupled with a $1.6 billion net pre-tax headwind from revaluations of equity investments, contributed to a reported net income of $296 million for the quarter, a sharp decline from the $6.88 billion recorded a year prior. Increased taxes and strategic pricing adjustments to remain competitive in the ride-hailing market also played a role in the weaker profitability.
Despite these profit concerns, Uber reported a substantial increase in user engagement, with monthly active platform consumers reaching 202 million, an 18% year-over-year increase. Gross bookings for the quarter hit $54.1 billion, exceeding the analyst estimate of $53.1 billion. The company projects first-quarter gross bookings to grow by at least 17% year-over-year, ranging between $52 billion and $53.5 billion.
In a significant leadership update, Uber announced the promotion of finance executive Balaji Krishnamurthy to Chief Financial Officer, succeeding Prashanth Mahendra-Rajah.
Looking ahead, Uber CEO Dara Khosrowshahi reiterated his conviction in the transformative potential of autonomous vehicles (AVs), envisioning them as a multi-trillion dollar opportunity that will amplify the company’s existing platform strengths. Khosrowshahi highlighted that in markets where Uber has piloted autonomous rides, such as Atlanta and Austin, overall trip growth, even for human drivers, has accelerated. He anticipates Uber facilitating AV trips in up to 15 cities globally by the end of 2026, with a target of becoming the world’s largest facilitator of AV trips by 2029. Forthcoming cities for AV expansion include Houston, Los Angeles, San Francisco, London, Munich, Hong Kong, Zurich, and Madrid. However, Khosrowshahi also cautioned that widespread AV adoption will likely be a gradual process, hindered by technological, regulatory, and other hurdles.
The company is also placing strategic emphasis on its subscription program, Uber One, noting that members tend to increase their ride bookings and item purchases through the platform. Furthermore, Uber is actively investing in its advertising business and exploring innovative integrations. Leveraging the surge in generative artificial intelligence, Uber is working on enhancements, including potential integrations with ChatGPT, to improve service discovery and customer engagement prior to checkout.
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